Overview

The United Arab Emirates (UAE) has consistently aimed to establish itself as a “modern hub of opportunities” for people worldwide. 

Over the years, the country has introduced significant revisions to its labour legislation. These reforms are designed to modernise various aspects of employment, ensuring better alignment with international standards and the evolving demands of the workforce.

This article outlines the legal provisions and recent reforms in employment law across three jurisdictions, with a particular focus on ADGM and its latest amendments introduced this year, including their enforceability and legal effect.

 

Jurisdictions Covered:

1. Mainland UAE

2. Dubai International Financial Centre (DIFC)

3. Abu Dhabi Global Market (ADGM).

 

Mainland UAE:

The labour laws in the mainland are governed under Federal Decree-Law No. 33 of 2021 (Regulating Labour Relations) and Cabinet Resolution No. 1 of 2022 (Implementing Regulations). 

Key amendments were brought in 2024 to enhance the law. This includes:

• Contractual Structure: Mandatory fixed-term contracts (up to 3 years)

• Leaves:

  • 30 days of paid leave in a calendar year

    • 60 days of maternity leave 

      • 5 days of paternity leave 

• Anti-Discrimination: Protection against discrimination.

• Termination and Notice: Notice period of 30–90 days, with minimum procedural protections.

• Gratuity: Accrues on termination, calculated on the last drawn basic wage.

 

DIFC:

The DIFC follows the English common law system, and its jurisdiction does not follow the mainland rules and regulations. 

 

Key Reforms (2024 Amendments):

• Top-Up DEWS Contributions: Deficits exceeding AED 1,000 to be met by employers under GPSSA by DEWS.

• Victimisation Protections: Staff protected against their company for exercising statutory rights.

• Maternity & Paternity Leave: Stillbirths after 24 weeks and adoption are included.

• Termination Rights: Dismissals under cause cannot take away end-of-service benefits.

• Waiver Enforceability: Applicable only if an employee receives independent legal advice.

 

ADGM:

In 2025, Abu Dhabi Global Market (ADGM) implemented major employment reforms through the Employment Regulations 2024, which took effect on April 1, 2025. These new regulations replace the 2019 framework, enhancing employment standards, aligning with international best practices, and accommodating modern work models.

 

Key changes are as follows:

• Remote Work

Remotely based workers overseas do not need to apply for a UAE residence visa or an ADGM work permit. The laws progressively legitimise working from home, providing greater flexibility for global talent.

 

• Forbidding the Cost Recovery of Recruitment

Employers cannot demand repayment for recruitment fees, visa charges, or cancellation charges. It protects workers from the payment of recruitment fees.

 

• Part-Time Employment Clarification

Develop pro rata rules and benefit calculations, such as leaves and end-of-service gratuity, in proportion to part-time work hours. Increases the legal clarity of part-time contracts and rights.

 

• Work Permit and Visa Cancellation

Employers are strictly obliged to end the ADGM work permit and the UAE visa of the employee immediately on termination. To ensure compliance with UAE immigration law and protect staff from the risk of overstay fines.

 

• Waiver of Employee Rights

Employees can waive rights only through a mutually agreed-upon binding settlement agreement. Such waivers must be written, voluntary, and represent free consent, preventing coercive agreements.

 

• Anti-Victimisation and Whistleblower Protections

Strengthened statutory protections against workplace victimisation. Whistleblowers are shielded from civil and contractual liability for protected disclosures.

 

Enforceability

Each jurisdiction possesses distinct legislative and judicial authority over employment matters. All three frameworks are legally binding and enforceable within their respective jurisdictions. Employers must adhere to the applicable framework based on their operational jurisdiction.

 

Additionally:

• ADGM and DIFC courts hold exclusive jurisdiction over employment disputes arising within their territories.

• Unless explicitly stated in their contracts and formally accepted, mainland UAE employees cannot claim protections under DIFC/ADGM laws.

 

The Bottom Line

The UAE has successfully modernised its employment regulations across all jurisdictions, bringing them in line with international labour standards. 

Employers must differentiate between Mainland, DIFC, and ADGM laws to ensure compliant employment contracts.

The latest DIFC and ADGM reforms introduce stronger employee safeguards, such as DEWS contributions, anti-victimisation protections, and whistleblowing immunity, which are legally enforceable within their jurisdictions. Failure to comply may result in substantial fines, legal risks, and reputational damage for employers.

 

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