The Abu Dhabi Global Market (ADGM) Registration Authority has introduced the Employment Regulations 2024 (“New Employment Regulations“) to provide clearer guidance on the rights and responsibilities of both employers and employees. These New Regulations will supersede the Employment Regulations 2019 and the Employment Regulations 2019 (Compensation Awards and Limits) Rules 2019, which will be repealed once the new regulations come into effect. Scheduled to take effect on 1 April 2025, the New Employment Regulations provide employers ample time to revise policies, contracts, and other employment-related procedures.
Significant Changes
A. Visas and Permits
Some of the additional requirements added to visas and permits require that the employer must obtain or have applied for an employee work permit before the employee commences work. The employer must not request, demand, or accept any payment from the employee as reimbursement for costs incurred in obtaining the work permit.
Additionally, the employer must cancel the employee’s work permit and employer-sponsored residency visa, if applicable, as soon as reasonably practicable following the termination date and within the timeframe set by the relevant competent authority.
The employer must also not request, demand, or accept any payment from the employee as reimbursement for costs incurred in canceling the work permit or residency visa, if applicable. Furthermore, the employer must not make the cancellation of the employer-sponsored residency visa conditional on the employee waiving any rights under these regulations or making any payment to the employer.
B. Remote Work
When an employer and employee agree on remote work arrangements—whether as a fully remote role or a hybrid model involving both the employer’s premises and other agreed locations—the employer is responsible for providing and maintaining the technical equipment required for the employee to perform their duties remotely unless an alternative agreement is reached between the parties.
Employment contracts should explicitly confirm that the employee’s place of work is remote, acknowledging their designation as a remote employee.
C. Part-time Employees
If a part-time employee’s employment contract requires them to work the same number of days as the full-time working week of the employer, their entitlements under the relevant sections shall not be pro-rated.
If a part-time employee’s employment contract specifies fewer than five working days per week, their entitlements shall be pro-rated. The adjustment shall be calculated as a percentage of the days worked by the part-time employee relative to the standard working week of the employer’s full-time employees.
D. Late Payment After Termination
Employers are required to settle all wages and amounts owed to an employee, excluding variable payments, within 21 calendar days of the employee’s termination date. Variable payments may be deferred if reasonable conditions are mutually agreed upon in writing. In the event of non-compliance, the employer may be liable to pay a penalty equivalent to the employee’s daily wage for each day of delay, subject to the court’s discretion to waive or reduce the penalty based on the conduct of both parties.
Penalties apply only if the outstanding amount exceeds one week’s wages and are capped at six months’ daily wages, and are enforceable solely when the termination occurs after the regulations come into effect.
E. Leave
- Bereavement Leave
The new regulations now include bereavement leave, granting employees five working days of leave upon the death of a spouse, parent, child (including an adopted child), or sibling, subject to the employee meeting reasonable evidentiary requirements set by the employer. During this leave, employees are entitled to receive their daily wages. The leave applies to each bereavement and must be used within one month of the event.
- Maternity Leave
Under the New Employment Regulations, maternity rights now also apply to women adopting a child under five years old, whether within or outside the UAE, with references to childbirth as the date of adoption. These rights also extend to women who experience a stillbirth or miscarriage after the 24th week of pregnancy.
This is a notable change from the 2019 employment regulations, where maternity rights only applied to female employees adopting a child less than three months old, with childbirth similarly treated as the date of adoption.
Furthermore, upon returning from maternity leave, if an employee’s regular working hours exceed six hours in a working day, she is entitled to at least one nursing break totaling no less than one hour during the working day. This nursing break is in addition to the rest break provided for in the regulations and remains applicable for nine months following the actual date of childbirth.
F. Discrimination and Victimization
An employer must provide a workplace free from discrimination, harassment, and victimization, ensuring it is safe and poses no health risks to employees. Discrimination is prohibited on grounds of sex, marital status, pregnancy, maternity, race, nationality, religion, age, or disability.
If an employer discriminates against an employee, the employee may seek a court declaration. The court may then order the employer to provide compensation deemed just and equitable, considering factors such as the employer’s conduct, any emotional distress experienced by the employee, and any loss incurred due to the employer’s failure to comply with its obligations. The total compensation awarded shall not exceed three years’ wages. Furthermore, the court may require the employer to take specific actions to alleviate or minimize the adverse impact on the employee or any affected parties.
An employer must not victimize an employee. Victimization occurs when an employer subjects an employee to a detriment, including dismissal, due to the employee engaging in a protected act or the employer believing the employee has or may engage in such an act. Protected acts include bringing proceedings, giving evidence, or making a formal allegation of contravention of the regulations. False evidence or allegations made in bad faith are not protected.
If an employee is victimized, they may seek a court declaration. The court may order the employer to compensate the employee in an amount deemed just and equitable, with total compensation not exceeding three years’ wages. The court may also require the employer to take actions to mitigate the adverse effects on the employee or others involved.
Exemptions
The New Employment Regulations do not apply to employers holding a dual license issued by the Abu Dhabi Department of Economic Development, where the employees are governed by UAE Labour Law. Additionally, employers who have been designated as exempt by the Board in accordance with the Commercial Licensing Regulations (Exemptions Order) 2024 are also excluded from the provisions of these Regulations.
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