The new DIFC Employment Law, enacted by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai earlier this year, will go into effect on Wednesday.
The newly-enacted law addresses key issues such as paternity leave, sick pay and end-of-service settlements.
It 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.
Essa Kazim, governor of DIFC, said in June: “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.”
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