Proposed Amendments to the DIFC Employment Law

The DIFC Work Regulation came into drive on 14 January 2020 amending the DIFC Legislation No. 2 of 2019. The principal reason of the modification was to exchange the notion of conclude of services gratuity with the DIFC Personnel Workplace Cost savings Approach (DEWS) or an choice qualifying plan. The introduction of DEWS aligned the framework with global best exercise.

Now, a single 12 months on, the DIFC intends to further amend the existing law to give clarification and to handle any other locations of uncertainty. The proposed legislative alterations search for to explain described phrases, rectify probationary periods under quick, mounted-expression contracts as perfectly as the accrual of yearly depart. Importantly, the amendments will render any agreement or arrangement that seeks to reclassify recurring payments to employees as non-recurring payments to be null and void and unenforceable. This prevents companies minimizing an employee’s standard wage calculation for the functions of the core reward contributions by an employer less than DEWS.

The DIFC Authority has published the proposed legislative alterations for a 30-day public session period of time, ending on 28 March 2021. The session paper is accessible listed here.

For additional information and facts in relation to the DIFC Work Law, please speak to
Joanna Stewart ([email protected])