Outsourcing Companies Face the Test of Modern Work Models in the New Labor Law

With the increasing adoption of modern work models such as “remote work” and “part-time,” Egypt is embarking on a new chapter in the development of its work environment by including these models for the first time within the draft of the new Labor Law (Law No. 14 of 2025).

This step reflects the rapid changes in the labor market, but it simultaneously poses new challenges for outsourcing companies, especially given their growing reliance on young, less experienced talent.

Caught between the need for flexibility and the demands of efficiency and discipline, the crucial question remains: is the sector truly prepared to absorb these transformations without affecting the quality of performance?

Mohamed El-Derwy, CEO of “Target” Human Resources, stated that the inclusion of modern work models in the Labor Law represents a significant development that supports the flexibility of the labor market and enhances the ability of outsourcing companies to meet client needs with greater efficiency, particularly in dynamic sectors such as technology and customer service.

He emphasized that legalizing these models provides confidence to all parties involved, which was previously ambiguous.

El-Derwy believes that the new law achieves a better balance between the rights of the worker and the employer and establishes legal protection that includes non-traditional employment, especially those working remotely or on a part-time basis.

He considers this a response to labor market changes and hails Law No. 14 of 2025 as one of the best pieces of legislation issued in Egypt for the benefit of employees, ensuring their full rights.

He explained that his company has already begun implementing models such as remote work and part-time work in several sectors within the group, while maintaining performance standards and ensuring institutional integration.

“We have found that these models enhance productivity and diversity,” he noted.

He also believes that these models will drive the redesign of some jobs to be more adaptable to employee needs without compromising service quality, and will open doors for new segments to integrate into the labor market, such as mothers and university students.

However, El-Derwy pointed out several challenges in implementing this law, the most important of which is the lack of a unified understanding for the interpretation of some articles of the law and the necessity of raising legislative awareness among managers and employees.

Furthermore, he noted that regulating the mechanisms of performance and measurement for these models requires precise organizational and operational tools.

Abdel Aziz: Young Talent Needs Experience to Prevent Negative Impacts on Modern Work Models

Shaimaa Abdel Aziz, CEO of “Goshat 247,” a company specializing in outsourcing services and advanced technology, stated that the impact of including modern work models in the new Labor Law on outsourcing companies largely depends on the employee themselves.

She pointed out that companies in this sector fully understand this trend and are aware of its various dimensions.

Abdel Aziz added that the outsourcing industry is witnessing a significant influx of young workers who require sufficient experience, which could have negative impacts on modern work models, especially given the challenges some employees may face in adhering to the new work patterns.

Regarding the extent to which outsourcing companies rely on modern work methods such as remote work or part-time work, Abdel Aziz explained that her company was among the first entities to adopt these models, starting in 2017.

She indicated that about 10% of the company’s employees work from home during times when work requires high concentration, such as evening shifts and times requiring specialized technical skills.

She also mentioned that remote work is also applied during times such as the month of Ramadan, where employees work after Iftar according to the needs and nature of the work.

Abdel Aziz clarified that these models are not subject to continuous monitoring by management but rely primarily on the employee’s ability to work efficiently and effectively without the need for direct supervision.

She affirmed that these modern work patterns may provide greater opportunities for both companies and employees, provided that the employee possesses responsibility and the ability to organize their working time independently and flexibly.

Fouad: Abolishing Form 6, Banning the Dismissal of Pregnant Women, and Establishing a Labor Court are Key Advantages

Shaimaa Fouad, CEO of “Winners” Outsourcing and Recruitment Services, stated that the abolition of Form 6 in the new Labor Law is a very positive step, especially since most companies were misusing it with their employees.

She explained that the recent period also witnessed some companies attempting to evade responsibility for work injuries and the costs of treatment, shifting the entire burden to outsourcing service providers.

Fouad added that these phenomena prevailed in the labor market due to the belief of some that the employee is merely a tool, without attention to developing their skills, raising their efficiency, and ensuring their psychological comfort, especially since they are a key part of the system.

She also praised the clause prohibiting the dismissal of any pregnant woman, noting that some women, when applying for jobs, used to refrain from disclosing their marital status for fear of reducing their chances of employment.

She believes that the establishment of a labor court under the new Labor Law represents a qualitative leap in preserving employee rights by supporting labor offices and ensuring that employers do not manipulate the system or evade their responsibilities.

She pointed out that the court issues judgments against employers who violate the provisions and does not require their attendance at any sessions.

She noted that some company contracts contained many legal loopholes, such as being renewable monthly, which the labor office does not recognize at all, especially since the prevailing norm is that they are annual.

She continued: “Currently, if an employer wishes to terminate a contract with any employee, there is a set of procedures that must be followed.”