Cairo Court of Appeals Upholds Compensation Award for Arbitrary Dismissal of Egypt Exchange Employee
On April 7, 2025, the 13th Labor Division of the Cairo Court of Appeals issued its judgment in Appeal No. 4342 of Judicial Year 141, rejecting the appeal filed by Egypt Exchange Company and affirming the ruling of the court of first instance. The judgment upheld the award of EGP 354,000 in favor of the claimant, Ahmed A., as compensation for his arbitrary dismissal, in addition to compensation for the notice period and accrued, unused annual leave.
The claimant commenced his employment with Egypt Exchange on January 1, 2009, in the capacity of Branch Manager in Aswan, earning a gross monthly salary of EGP 6,424. He was duly enrolled in the social insurance system through the Aswan Insurance Office.
He remained in service until December 12, 2023, when he was abruptly and unlawfully dismissed from his position and prevented from performing his duties. Despite multiple attempts to ascertain the legal grounds for the dismissal and to resolve the matter amicably, the company failed to provide justification or remedy.
In response, the claimant filed Administrative Police Report No. 936 of 2024 with the Aswan First Police Department in an effort to settle the dispute amicably, but these efforts were unsuccessful. He subsequently filed a direct labor lawsuit through the Egyptian Center acting on his behalf, seeking to assert his statutory rights.
The lawsuit was registered under No. 583 of 2024 before the South Cairo Primary Labor Court and was heard by the 18th Labor Division.
On May 27, 2024, the court rendered its judgment, ordering the defendant, in its legal capacity, to pay the claimant EGP 257,720 as compensation for material and moral damages resulting from the arbitrary dismissal, EGP 19,272 for the notice period, and EGP 76,764.65 for accrued, unused annual leave not previously compensated. The court further directed the company to issue a certificate of employment for the claimant, including the details required under Article 130 of the Labor Law.
The company appealed the ruling; however, at the hearing held on April 7, 2025, the Court of Appeals dismissed the appeal and affirmed the judgment in full, thereby confirming the claimant’s entitlement to a total sum of EGP 354,000.
