Dubai ruler enacts new DIFC Employment Law

New law covering companies in Dubai International Financial Centre tackles issues such as paternity leave, sick pay and end-of-service settlements
Dubai ruler enacts new DIFC Employment Law
By Sam Bridge
Wed 12 Jun 2019 04:47 PM

Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum has enacted a new DIFC Employment Law to address key issues such as paternity leave, sick pay and end-of-service settlements.

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

Employer-focused provisions include expansion of employee duties, reduction of the statutory sick pay, limiting the application of mandatory late penalty payments for end-of-service settlements and recognising settlement agreements between employers and employees.

Employee-focussed provisions include the introduction of five days of paternity leave and penalties for discrimination.

Penalties have also been introduced to ensure adherence to basic conditions of employment, visa and residency sponsorship.

The law centres around the necessity to balance the needs of employers and employees in the DIFC while maintaining a robust framework of employment standards that contribute to the success of the DIFC, a statement said.

Essa Kazim, governor of DIFC, said: “The DIFC Employment Law enhancements are integral to creating an attractive environment for the almost 24,000-strong workforce based in the DIFC to thrive, while protecting and balancing the interests of both employers and employees.”

The new Insolvency Law and Regulations, which was announced on Tuesday, will come into effect on June 13.

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