July 2025 - APLUS - HR Consultancy firm in Egypt

HR policies are not just paperwork. They protect your company, guide your team, and ensure compliance with Egyptian labor law.

In 2025, ignoring key HR policies can cost you — in lawsuits, poor performance, or high turnover. Whether you’re a small business or scaling fast, these 15 HR policies are a must-have in your employee handbook.

Let’s dive in.

1. Employment Contracts & Job Descriptions

Every employee must sign a clear, legally valid contract. Attach a job description that outlines duties, KPIs, and reporting lines.

✅ Egyptian labor law requires a signed Arabic contract for all staff — don’t skip this.

2. Attendance & Working Hours Policy

Define working days, hours, late arrival rules, and overtime procedures. Be clear about Ramadan hours, break times, and flexible work (if allowed).

3. Leave Policy

Explain all types of leave: annual, sick, maternity/paternity, emergency, unpaid, and public holidays. Include how to apply and approval timelines.

4. Disciplinary Policy

Outline the steps: verbal warning, written warning, suspension, termination. Include who handles it and what offenses apply.

5. Resignation & Termination Policy

Define notice periods, resignation procedures, exit clearance steps, and final settlement timelines. Be compliant with Egyptian law on notice durations.

6. Social Insurance & Medical Exam

Clarify when employees will be registered in insurance, Form 1 submission, and pre-employment medical exam (Form 111).

7. Remote & Hybrid Work Policy

If your business allows remote work, this must cover eligibility, expectations, working hours, and communication rules.

8. Performance Evaluation Policy

Explain how often performance reviews happen, what’s evaluated (objectives, competencies), and how results affect promotions or raises.

Related: Essential HR features for Egyptian SMEs over 20 Employees

9. Training & Development Policy

List the types of training provided, who is eligible, and how it’s planned. Include onboarding training for new hires.

10. Payroll & Compensation Policy

Define pay dates, salary structure, overtime calculation, bonuses, and deductions. Be transparent and consistent.

11. Workplace Conduct & Ethics

Set expectations around behavior, dress code, language, and professionalism. Include policies against harassment and discrimination.

12. Data Protection & Confidentiality Policy

With more digital tools in use, employees must protect company data. Clarify what is confidential and the penalties for breach.

13. Conflict of Interest & Outside Work

Employees should disclose if they work elsewhere or have competing interests. Add clear rules and examples.

14. Grievance Handling Policy

Employees must know how to raise a complaint. Define the process, responsible person, and resolution timelines.

15. Health & Safety Policy

Especially for physical workplaces. Cover fire drills, evacuation plans, workplace injuries, and safety responsibilities.

Final Tip: Keep Policies Accessible

Your HR policies should not sit in a dusty drawer. Share them in onboarding, post them on your internal system, and review them yearly. And always consult with an HR or legal expert to make sure your policies comply with current Egyptian labor law.

Need help drafting or updating your HR policies?

📩 [Book your Free HR Policy Review — Egypt Only]

1. Clear HR Processes

You cannot manage what isn’t written down.

At 5–10 employees, informal processes may work. But at 20+, a missing leave policy or messy onboarding process will waste hours of your time — and frustrate both employees and managers.

Your HR process checklist should include:

✅ Hiring steps (from job ad to offer letter)
✅ Onboarding checklist (documents, welcome, system access)
✅ Attendance, late arrivals, absence requests
✅ Leave policy: how to apply, approve, and track
✅ Offboarding process: resignations, exit clearance

Why it matters:
Without clear HR processes, each task becomes a source of conflict and delay. Managers guess. Employees complain. You lose control. With structure, everyone knows what to do and when.

👉 Tip: Use visual SOPs (standard operating procedures) and digital tools like Google Forms, Trello, or low-cost HR software to standardize your operations.

2. Updated Employee Files

Messy or missing files? That’s a serious compliance risk in Egypt.

The labor office can inspect your company at any time. If files are incomplete, outdated, or not stored properly, you may face penalties — even lawsuits.

Your updated employee file must include:

📁 Legal & Personal Documents

National ID (or passport for expats)
Birth certificate, military certificate (for Egyptian men)
Educational degrees and CV
6 personal photos
Work permit and visa (for foreign employees)

📁 Official Employment Documents

Triplicate Arabic labor contract (signed)
Job description and KPIs (signed)
Social Insurance Form 1 (registration)
Form 111 (pre-employment medical exam – new legal requirement)

📁 HR Records

Attendance, leave balance, absence records
Disciplinary letters, evaluations, training records
Payroll data: salary breakdown, overtime, bonuses
Resignation/termination forms and end-of-service clearance

Why it matters:
Your employee file is your legal shield. If something goes wrong — a dispute, a resignation, or a labor inspection — these files protect you.

👉 Tip: Store files digitally using secure drives or HR software, but keep physical copies too. Legally, you must retain all employee documents for 5 years after exit.

3. Labor Law Compliance

Many businesses in Egypt “think” they’re compliant… until a problem proves otherwise.

Egyptian Labor Law (especially after Law No. 14 of 2025) has strict rules on contracts, working hours, leave, termination, and more. One wrong step can cost your business thousands.

Your HR compliance checklist should cover:

✅ Legal contract format (Arabic, correct type, correct clause)
✅ Maximum working hours and overtime calculation
✅ Accurate leave management: annual, sick, maternity
✅ Proper warning system (verbal, written, termination steps)
✅ Childcare rights, breastfeeding breaks, female employee protection
✅ Correct social insurance onboarding (Form 1) and health check (Form 111)

Why it matters:
Non-compliance can lead to fines, lawsuits, labor court cases, or employee claims. Even if you win a case, the time and cost are high.

👉 Tip: Don’t copy contracts from Google. Work with an HR legal expert who understands Egyptian law and updates your documents regularly.

4. HR KPIs to Track Performance

If you don’t measure your team’s performance, you’ll always be reacting instead of improving.

Whether or not you have a full HR team, every growing business must track basic HR metrics. These numbers help you fix problems early and support better decisions.

Start with these 5 simple HR KPIs:

📊 Employee Turnover Rate
📊 Absenteeism Rate
📊 Time to Hire
📊 Training Hours Per Employee
📊 Employee Satisfaction Score (optional)

Why it matters:
KPIs give you visibility. If turnover is rising, it’s time to fix onboarding. If hiring takes 40 days, you need a faster process. Without KPIs, you’re operating in the dark.

👉 Tip: Track KPIs monthly in a simple Excel sheet, then upgrade to free or low-cost software as you grow.

Summary: Build the HR Foundation Before You Build Your Team

Crossing the 20-employee mark is a huge step. It also brings huge responsibility.

Don’t wait until mistakes happen. A strong HR system reduces legal risks, saves money, builds employee trust, and improves your business performance.

✅ Your 4-part HR foundation:

Clear HR Processes
Complete & Organized Employee Files
Full Compliance with Egyptian Labor Law
HR KPIs to Track & Improve Performance

If you’re missing one of these areas, your business is at risk — and growth will only make the problem bigger.

Wondering if your current HR system measures up? We recommend conducting an HR Audit & Assessment to spot gaps, fix compliance issues, and strengthen your HR foundation.

Get Your Free HR System Audit (Egypt-Only)

We help companies in Egypt build smart, compliant HR systems so they can grow confidently.

Book a free HR system review tailored to your company.

Archives July 2025

15 HR Policies You can’t ignore in 2025 (Egypt Edition)