HR and payroll

When does a company need an HR department?

By Mahmoud SaiedLast updated 27 October 20262 min read

The short answer

You need one when the owner or general manager is busy with hiring, payroll and daily staff problems at the expense of running the business. In Egypt, Article 137 of Labor Law No. 14 of 2025 requires every employer with ten or more workers to prepare work and disciplinary regulations, a natural point to organize HR.

Step by step

  1. 1

    Watch management time

    If the owner spends a large part of the week hiring, settling disputes and calculating salaries, it is time to organize.

  2. 2

    Notice the warning signs

    Repeated resignations, payroll errors, employees unsure of their responsibilities, and different decisions in similar cases.

  3. 3

    Check your legal obligations

    Every new employee means a contract, a file and obligations to official bodies, and in Egypt work regulations become mandatory at ten workers under Article 137.

  4. 4

    Build the basics first

    Standard contracts, internal regulations, a salary scale and a job description for each role, before hiring a full team.

  5. 5

    Choose the right setup

    An in-house HR officer, an outside consultant who builds the system, or both: consulting builds the foundation and an in-house officer runs it.

A common mistake

Hiring one administrative employee to handle all of HR without written policies or clear authority turns them into a processor of exceptions rather than the manager of a system.

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