Dubai Introduces New Employment Law

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, executed a new DIFC Employment Law, Law No. 2 of 2019 on Wednesday.

Dubai International Financial Centre (DIFC) circulated a statement stating that the newly-passed law praises the DIFC’s devotion to international best practice, with the Employment Law addressing crucial issues like sick pay, paternity leave, and end-of-service settlements.

His Excellency Essa Kazim, Governor of DIFC, stated that the DIFC Employment Law enhancements are fundamental to creating an attractive environment for the almost 24,000-strong workforce based in the DIFC to prosper, while defending and balancing the interests of both employers and employees.

The new law, which will come into effect on August 28, 2019, clarifies the application of DIFC’s employment regime to employers and employees, including seconded, part-time and short-term employees.

The law focuses around the obligation to balance the needs of employers and employees in the DIFC while keeping a robust framework of employment standards that lead to the success of the Centre.

Employer-focused allocations consist of expansion of employee duties, diminish of the statutory sick pay, reducing the application of mandatory late penalty payments for end-of-service settlements and recognizing settlement agreements between employers and employees.

The new law was liable to extensive research and global standard, as well as thorough public consultation, which aided in shaping the law to certify that the DIFC remains the most experienced and business-friendly Common Law jurisdiction in the region.