New ADGM Employment Regulations

On Monday, October 28, 2019, the Abu Dhabi Global Market (ADGM) issued new employment regulations that will take effect on January 1, 2020. These new regulations have been issued in a continued effort by the ADGM to meet international best practices and provide employers the legal framework required to increasingly attract and retain the best local and international talent. The Dubai International Financial Centre (DIFC) took a similar step in June of 2019 when it also issued an updated employment law. For more information on the new DIFC employment law, please click here.

Some pro-employer provisions include reductions in sick pay (maximum of 60 days, with full pay for the first 10 days, half pay for the next 20 days and no pay for the remaining 30 days) and a shortened minimum termination notice period (seven days if employed for less than three months and 30 days if employed for three months or more).

Some pro-employee provisions include a one-way flight ticket allowance for employees who have been terminated and a new overtime regime that compensates employees who work more than an average of 48 hours over a seven day period. Employees who work overtime are entitled to either monetary compensation (in addition to daily wage, 25 percent of hourly rate and 50 percent for overtime between 9 pm and 4 am) or time off in lieu or both. However, the overtime regime does not apply to employees in managerial or supervisory positions, including those who work in industries where it is internationally expected that overtime compensation is not payable.

To view a full copy of the ADGM’s new employment regulations, please click here.

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