Labour Law 2026: What Has Changed for the Employee and Employer?
Extension of the non-compete clause to two years, and requiring major establishments to form joint committees, effective from 25 July 2026.
Law No. (9) of 2026 was issued amending certain provisions of the Labour Law. It introduced changes affecting both the employee and employer, while also adding new obligations for certain establishments.
The amendments address the scope of application of the law, the non-compete clause after the end of the employment relationship, and the regulation of joint committees within establishments.
Scope of Application: Exclusion of Part-Time and Freelance Work
The amendment added workers under part-time work arrangements and workers under freelance work arrangements to the categories excluded from the scope of application of the Labour Law.
At the same time, the law authorizes the Council of Ministers to subject these two categories to all or some of the provisions of the Labour Law, or to establish a special system regulating their work.
Before the amendment, these two categories were not included among the cases excluded under Article (3), and their contractual relationships were subject to the general rules of the Labour Law.
Non-Compete Clause: Two Years and Prior Approval
The maximum period for a non-compete clause after the end of the employment relationship has become two years, where the nature of the employee's work allows the employee to become acquainted with the employer's clients or the establishment's secrets.
The amendment introduced a new restriction, namely that the clause will not be enforceable unless the competent department at the Ministry of Labour approves it.
The clause is also deemed as if it had never existed if the employment contract is terminated during the probationary period.
Before the amendment, the maximum period for the clause was one year, and its enforceability was not subject to prior administrative approval.
Joint Committees: From Permitted to Mandatory
The formation of joint committees within the establishment has become mandatory when the number of workers reaches one hundred workers, provided that the committee includes equal representatives of the employer and the workers.
Before the amendment, the formation of the committee was permitted rather than mandatory, and applied to establishments employing thirty or more workers.
Publication and Entry into Force
Law No. (9) of 2026 was published in the Official Gazette on 25 June 2026, and its provisions came into force on 25 July 2026.
Summary
The amendment seeks to reorganize a number of practical matters related to employment contracts and the management of the relationship between the employee and employer, while providing greater clarity regarding certain obligations that concern establishments and their workers.
The outcome is that the amendments achieve a degree of balance between the interests of the employee and the employer; they expand the protection of the establishment through the non-compete clause, while at the same time restricting this expansion through the approval of the competent department and the lapse of the clause during the probationary period, and they grant workers equal representation on joint committees, whose formation has become mandatory.