As part of our review of Minister of Labor Decree No. 187 of 2025 (the “Decree”), issued pursuant to the newly promulgated Labor Law No. 14 of 2025 (the “Labor Law”) and setting forth the mechanisms and regulations for the authentication of employees’ resignations, we set out below a summary of the new framework governing authenticated resignations.
Key Takeaways:
- Two Paths to Resign: Employees can now resign either via a new Labor Office authentication process or through a mutual settlement agreement.
- Authentication is Now Required: For a standard resignation, the employee must submit it for authentication at the Labor Office.
- 10-Day Rule for Employers: The employment does not end immediately, employers have 10 days to accept the resignation, or it is deemed accepted by law.
- Employee’s Right to Withdraw: An employee can withdraw their authenticated resignation within 10 days of the employer’s acceptance.
- Mandatory Forms: The resignation and settlement forms prescribed under the law must be completed for the termination to be effective.
- Settlements are Different: A mutual settlement terminates the contract without Labor Office authentication, but requires both the mandatory resignation form and a signed settlement agreement confirming all dues are paid.
Understanding the New Resignation Procedures
- Termination by Resignation:
The Decree outlines that a resignation must be submitted in writing, signed by the employee (or his special attorney), and authenticated by the competent Labor Office. The Labor Office is required to record the resignation with a serial number, date, and official seal, and to provide a copy to the employee. Employers or their representatives are now expressly prohibited from submitting a resignation on behalf of the employee.
Further, employment relationships do not terminate immediately upon submission. Instead, they end once the employer accepts the resignation, or upon the lapse of ten (10) days from the date of submission without any response, in which case the resignation is deemed accepted by law. During this interim period, the employee must continue performing their duties.
Additionally, the Decree also confirmed the employee’s (or his special attorney) right of withdrawal as stated in the Labor Law. Specifically, the resignation may be revoked within ten (10) days of the employee being notified of the employer’s acceptance, provided that the withdrawal is in writing and authenticated by the same Labor Office.
Finally, the seal of the Labor Office is sufficient for all official purposes, although the employee may also request that the resignation be authenticated with the State Emblem (Seal of the Republic).
- Termination by Settlement/Mutual Release:
The Decree then clarifies that the authentication procedure for resignations does not apply where the parties agree to terminate the employment relationship by mutual consent, whether under a fixed-term or indefinite contract. In such cases, the parties must execute the mandatory resignation form together with a settlement (mutual release) agreement expressly confirming that the employee has received all financial entitlements.
Any resignation or termination (settlement) agreement must be voluntary and free from coercion and obliges employers to settle all dues upon termination. Employers must also provide, within fifteen (15) days of request, a service certificate and return all employee documents and property.
In summary, resignations may proceed either through an authenticated resignation form filed with the Labor Office, or alternatively, through the submission of both the mandatory resignation form and the mandatory settlement agreement, in which case no authentication is required.
For any questions or inquiries, please feel free to contact:
Tamer Fawki
Partner, Head of Employment & Labor