Know about the laws that govern employment in the DIFC
Updated July 14, 2023
The Dubai International Financial Centre (DIFC) has its own set of laws and regulations that apply to businesses operating within its jurisdiction, including employment laws. Here, we will discuss the laws that govern employment in the DIFC.
The DIFC Employment Law
As of 2005, the DIFC Employment Law is the main statute governing employment in the DIFC. A wide range of employment-related topics are covered by the law, including hiring, employment agreements, working hours, leave benefits, terminating employees, and compensation.
It is essential that employers follow fair and non-discriminatory hiring practices under the DIFC Employment Law. A job applicant's race, gender, age, religion, or nationality cannot be used as grounds for discrimination by an employer. Equal opportunities must be provided by employers to all applicants
Within 30 days of the employee's start date, under the DIFC Employment Law, the employers are entitled to give their staff members a formal employment contract. The contract must contain information on the employee's job title, responsibilities, pay, working hours, leave privileges, and notice time for termination. The contract must also abide by the minimal standards outlined by the law.
Working Hours and Leave Policy
According to the DIFC Employment Law, employees are allowed to work eight hours per day or 48 hours per week.
Public holidays are included in the minimum 30 days of annual leave that employees are entitled to.
Termination of an Employee
Employers are required to follow the DIFC Employment Law when terminating an employee's contract. Employers must provide employees with a minimum notice period, which varies depending on the length of their service. Employers must also provide a valid reason for the termination, and the reason must be one of the grounds set out in the law.
The DIFC Employment Law sets out the minimum wage that employers must pay their employees. The minimum wage is reviewed annually and is currently set at AED 4,000 per month. Employers must also provide end-of-service gratuity payments to employees who have completed one year of continuous service.
Employment in the DIFC is governed by the DIFC Employment Law, which sets out the rights and obligations of employers and employees. When compared with UAE labour law, there are few distinctions in annual leave, probation, termination and end of gratuity.
Employers must ensure that their recruitment practices are fair and non-discriminatory, and they must provide their employees with written employment contracts that comply with the minimum requirements set out in the law. Employees are entitled to a maximum of eight hours of work per day, 30 days' annual leave, and end-of-service gratuity payments. Employers must also follow the procedures set out in the law when terminating an employee's contract.