Revolutionizing the Workplace: ADGM’s New Rules on Remote Working

The Abu Dhabi Global Market (ADGM) has recently issued a thorough update of the Employment Regulations 2024 (“New Regulations”) which aims to strengthen workplace practices and offer new flexibility mechanisms while promoting the continued development of this key international financial centre.

The New Regulations will come into force with effect from April 1, 2025 repealing the Employment Regulations 2019 and the Employment Regulations 2019 (Compensation Awards and Limits) Rules 2019.

Considering the recent changes in approach towards work-life balance, the New Regulations attempt to allow mobility without fully relinquishing expectations from both employees and employers. The following are some of the most important provisions regarding remote work.

Definition and Scope of Remote Working

The New Regulations define a “remote employee” as an individual who (a) resides either within or outside the UAE, and (b) whose primary workplace is not the employer’s premises in the ADGM.

This also includes employees engaged in hybrid work models, where the employer’s ADGM premises serve as part of, but not the exclusive, workspace.

Employer Responsibilities

Employers are required to foster encouraging environments for remote and hybrid work arrangements. The New Regulations provides certain key obligations including:

Provision of Equipment: employers must supply and maintain the technical equipment essential for remote or hybrid work, unless otherwise agreed between the employer and the employee.

Health and Safety Exemptions: employers are exempt from certain on-site health and safety obligations, such as ensuring specific standards for ventilation and lighting for remote employees.

Visa and Permits

Under the New Regulations, an employer’s responsibilities for visas and permits depend on whether the remote employee resides and works in the UAE. For employees in the UAE, the employer must obtain, maintain, and cover the costs of their work permit, sponsored residency visa (if applicable), and UAE identity card (if applicable). However, for employees residing and working outside the UAE, the employer has no such obligations.

Rights of Remote Employees

Although with certain adjustments, remote employees retain rights comparable to on-site employees:

Leave Entitlements: vacation and sick leave policies apply equally, regardless of work location.

Equal Treatment: remote employees must have equitable access to opportunities such as training, promotions, and benefits.

Key Exclusions for Remote Employees

Remote employees based outside the UAE have different obligations and entitlements, including:

Workplace Safety Requirements: employers are not required to adhere to workstation ergonomics or room dimensions.

Health Insurance: employers are not obligated to provide health insurance coverage for remote employees outside the UAE and their dependents yet are still required to provide health insurance for remote employees residing and working within the UAE and their dependents.

Repatriation Flights: remote employees who reside and work solely outside the UAE are not eligible for repatriation flights upon termination.

Conclusion

The New Regulations create a progressive framework that tackles the challenges of contemporary workplaces while safeguarding the rights and responsibilities of all parties involved. Employers and employees within ADGM’s jurisdiction should take the time to understand these provisions to ensure compliance and make the most of the opportunities that remote work offers.

If you require any further specialised advice on the new ADGM Employment Regulations in general, please contact any member of our specialised team below to discuss further.