The public prosecutor instructed a swift investigation after allegations emerged that the schoolteacher in the Upper Egyptian city of Luxor punished two students for not wearing the veil.
The prosecution spokesperson Adel al-Saeed said the National Council for Childhood and Motherhood has filed a report over the incident.
Saeed said the teacher broke the law in a clear violation of the rights of children and their private lives.
Public Prosecutor Abdel Meguid Mahmoud instructed Luxor's Public Prosecution to hear the two students' testimonies of the incident and question the accused teacher.
The teacher who wears the face veil had instructed all female students to wear the veil as they have started grade six. When two girls appeared the following day without wearing the veil she cut seven centimeters of their hair as punishment.
The Muslim Brotherhood, which formed the majority in parliament and nominated the current president, insists Egypt will remain to be a secular state.
Yet the social pressure on liberals and non-Muslims has been on the rise since the revolution that toppled the president of 30 years Hosni Mubarak.