Remote work is no longer an exception forced by circumstances. It has become a fixed pattern in many Egyptian and Arab companies, especially in programming, design, customer service, marketing and accounting. Yet many of these companies still use the same traditional employment contract written for an employee who arrives at the office at nine and leaves at five. The result is a contract that does not answer real daily questions: when is the employee on working time? Who bears the cost of internet? Who owns the device? What happens to customer data on a home computer? Well-written remote work contracts answer these questions in advance and prevent many disputes before they start.
In this guide we first explain the fundamental difference between a remote employee and a freelancer, then go through the clauses a remote work contract needs one by one, showing for each why it matters, how to write it and the common mistake, with suggested wording and examples. We then explain how to sign the contract electronically in a way that protects both parties, and close with a checklist and frequently asked questions.
Remote employee or freelancer? The difference that changes everything
The first decision a company must make before drafting the contract is the nature of the relationship itself. A remote employee is an employee in the full legal sense: they work under the employer's management and supervision, receive regular pay, and are subject to the Labour Law with all the rights it gives, such as leave, social insurance and a notice period. A freelancer or independent contractor provides a service or completes a defined piece of work for an agreed fee, keeps independence in how and when they work, and the relationship is governed by the Civil Code rules on contracts for work or services.
| Criterion | Remote employee | Freelancer |
|---|---|---|
| Supervision and subordination | Works under the company's management and direction | Independent in how the work is done |
| Pay | Regular monthly salary | A fee per project or per hour |
| Working hours | Set by the company, even if flexibly | Set by the freelancer, as long as they deliver |
| Governing law | Labour Law | Civil Code |
| Rights | Leave, social insurance and a notice period | Whatever the contract agrees |
| Tools | Usually provided by the company | Usually uses their own tools |
The common mistake, and one of the most serious, is for a company to write an "independent services" contract for someone who in practice works for it full time under its full supervision, thinking this avoids Labour Law obligations. In a dispute, what counts is the reality of the relationship, not the label on the contract. If the person is shown to work under subordination and supervision for regular pay, the relationship may be treated as employment with all its consequences, whatever the contract is called. Example: a marketing company engaged five "freelancers" who had worked for it full time for two years, attended daily meetings and followed a specific manager. When it ended the engagement of one of them, he claimed full employee rights.
Clause one: place and nature of work
The contract must state expressly that the work is performed remotely, and specify whether it is fully remote or a hybrid arrangement combining home and office. This clause is not a formality, because it determines whether the company may later require the employee to attend daily, and whether the employee may move to another city or country.
Suggested wording: "The employee shall perform their work remotely from their place of residence within the Arab Republic of Egypt, and shall attend the company's premises on request up to a maximum of [number] days per month, provided they are notified at least [number] working days in advance. The employee may not change their country of residence without the company's written consent."
The common mistake is to leave this clause open, and then the company suddenly decides to end remote work, the employee refuses, and says their contract provided for working from home. Or the reverse: the employee moves to another country without notice, creating tax and legal problems nobody had planned for.
Clause two: working hours and communication
The absence of an office does not mean the absence of working hours, but it means that setting them needs greater clarity. The right approach is for the contract to specify daily or weekly working hours, and to distinguish between flexible hours the employee chooses and core hours when they must be available for meetings and communication. It is also good to specify the expected response time for messages during working hours.
Suggested wording: "Working hours are eight hours a day, five days a week, which the employee distributes flexibly, provided they are available for communication and meetings from [ ] to [ ]. The employee is not required to respond outside working hours except in urgent cases determined by their direct manager."
The common mistake has two faces: either the employee is left with no set hours and is expected to be available at all times, so they burn out and resign; or they are subjected to close monitoring of every minute and feel distrusted. A good contract balances the two.
Clause three: devices and tools
Who provides the computer, phone and software? Who owns them? Who pays for repairs? What happens to them when the contract ends? These questions seem simple but are a source of repeated disputes. The right approach is for the contract to state clearly what the company provides, and to attach a signed equipment receipt form at handover that records the device, its serial number and its condition.
| Tool | Option one | Option two |
|---|---|---|
| Computer | Provided by the company, remains its property and is returned at the end | The employee uses their own device with a monthly allowance |
| Software and licences | Provided by the company under corporate accounts | — |
| Phone | A work line from the company | The employee's own phone, with controls |
| Faults | Repaired by the company unless caused by negligence | Borne by the employee if the device is theirs |
The common mistake is to hand over the computer without a receipt form, and then at the end of the contract the parties disagree on the device's condition or on whether it was handed over at all. Example: an employee left the company and kept the computer, saying he had bought it himself. The company could not find a signed receipt form, and the dispute dragged on.
Clause four: costs and allowances
Working from home puts costs on the employee that the company bore in the office: internet, electricity and sometimes a workspace. The contract must specify whether the company bears any of them, and how: a fixed monthly allowance, or reimbursement against bills. The right approach is for the allowance to be specific, clear and separate from the basic salary, because that affects how some entitlements are calculated.
The common mistake is to leave the matter to a verbal arrangement, so the employee is promised an internet allowance that is then never paid, or is paid for months and then stops. Example: a technical support company verbally promised its staff a communications allowance, then cancelled it when the budget tightened, and employees felt deceived and some resigned. Had the allowance been written into the contract or a signed annex, changing it would have required a new, clear agreement.
Clause five: data protection and information security
When an employee works from home, company and customer data leave the protected office for a home network that family members may all use, and sometimes for a café. This places extra responsibility on the company, because the Personal Data Protection Law No. 151 of 2020 requires the company to protect its customers' data wherever it is processed. The right approach is for the contract to set out the employee's security obligations clearly.
Suggested wording: "The employee shall use the devices and accounts provided by the company for work purposes only, shall not store customer data on personal devices or unapproved storage services, shall not work on public networks without the secure method the company specifies, and shall notify the company immediately of any lost device or suspected breach."
The common mistake is to settle for a generic confidentiality clause copied from the traditional contract, with no reference to personal devices, networks or incident reporting. Example: a customer service employee used to move customer files to the family computer to work on them in the evening, and the device then became infected with malware. Nothing in her contract expressly prohibited this.
Clause six: confidentiality and intellectual property
What a remote employee produces, such as software, designs and content, must belong to the company by clear wording, exactly as if produced in the office. The right approach is for the contract to state that everything produced within the scope of work belongs to the company, and that the confidentiality obligation continues after the contract ends for a defined period. This clause matters even more in remote work because the line between personal and professional work is less clear.
The common mistake is for a remote programmer to work on a company project and a personal project at the same time, the two get mixed, and he claims ownership of part of the code. A good contract defines what counts as company work: what is produced during working hours, with company tools, or within the scope of its business.
Clause seven: non-competition and side work
May a remote employee work for another party in their spare time? May they work for a competitor after their contract ends? These are two different questions. The first is governed by a side-work clause, which may require notifying the company or obtaining its approval. The second is governed by a non-competition clause, which must be limited in time, place and type of work, or else the judge may disregard it or confine it to what is reasonable.
Suggested wording: "Throughout the term of the contract, the employee shall not work for any party engaged in a competing activity without the company's written consent. After the contract ends, and for [six months], the employee shall not work for a direct competitor in [specified field] within [geographic scope]."
The common mistake is to write an absolute non-compete: "may not work in any similar field anywhere for five years". An exaggerated clause like this weakens the company's position instead of strengthening it.
Clause eight: performance review and termination
In remote work, performance is hard to judge by attendance, so it must be judged by results. The right approach is for the contract to say that performance is evaluated against goals and indicators set periodically, and to specify termination procedures and the notice period, no shorter than the minimum set by the Labour Law, and how devices and data are returned at the end. The common mistake is to leave unspecified what happens to devices and accounts at termination, so the former employee keeps access to company systems for days after leaving.
How do you sign a remote work contract?
It is ironic for a company to hire a remote employee and then ask them to print the contract, sign it and mail it back. Electronic signing is the natural way for this kind of contract, and Egypt's Electronic Signature Law No. 15 of 2004 gives it evidentiary weight once its conditions are met. What matters is that the signing method can prove that the employee themselves signed, especially as they did not appear before anyone.
- The contract is prepared in the signing platform with the agreed clauses.
- The company representative signs first with the company stamp, or an order is set that starts with the employee.
- The employee receives a private link by email or phone.
- They enter the verification code sent to them, and may be asked to verify their identity.
- They sign, and the final copy of the contract reaches both parties.
In Wthaiq all these steps take place in minutes: the contract is sent with a verification code by email or WhatsApp, the employee's identity can be verified through a specialised external provider, and an audit log is kept with a trusted timestamp proving the time of signing. The equipment receipt form can also be sent for signing when devices are handed over.
Checklist for a remote work contract
- Has the nature of the relationship been determined precisely: employee or freelancer?
- Does the contract specify the place of work, its arrangement and the conditions for attendance?
- Are working hours and core communication hours set?
- Does the contract say who provides devices and who owns them?
- Has the equipment receipt form been signed?
- Are allowances specific and written?
- Does the contract include information security obligations?
- Is the intellectual property clause clear?
- Is the non-compete limited by time, place and type?
- Is it specified what happens to devices and accounts at termination?
Frequently asked questions
Is a remote employee subject to the Labour Law?
Yes. Where they work under the company's management and supervision for pay, they are an employee in the legal sense wherever they work.
May a company move an employee from the office to remote work by its own decision?
It is advisable to document this in an annex signed by both parties setting out the new terms, because it changes the terms of the original contract.
Is an electronic signature valid for an employment contract with an employee in another country?
Electronic signing is technically possible, but working from another country raises questions of applicable law and tax, so a specialist should be consulted.
May a company monitor a remote employee's device?
The employee must be told of any monitoring in advance, and it should be limited to company devices and work purposes, with regard to the Personal Data Protection Law.
What is the difference between a confidentiality clause and a non-compete clause?
Confidentiality prevents disclosing information, while non-competition prevents working for a competitor for a set period, and must be limited in time, place and type of work.
Conclusion
A remote work contract is not a traditional contract with the office address deleted. It is a contract that answers new questions: hours, devices, costs and data security. A company that writes it well and signs it electronically begins its relationship with remote employees on a clear footing. Prepare your contract and sign it with your employees wherever they are through Wthaiq.
This article is for general awareness and does not constitute legal advice.