Your Guide to DIFC Employment Rights and Law in 2024

The Dubai International Financial Centre (DIFC) is a financial free zone established by Federal Decree-Law No. 35 of 2004. It is a leading financial hub for the Middle East, South Asia, and Africa. DIFC functions under its own legal framework, which is founded on English common law. 

DIFC is a vital component of Dubai’s economy, providing a distinctive blend of a strong regulatory framework and varied business prospects. DIFC has over 25,000 professionals working at more than 2,000 active registered companies. Its employment law is distinct from UAE’s federal employment laws.

Understanding the employment rights and obligations within the DIFC is essential for creating a cooperative working environment and improving the overall business atmosphere within the DIFC. Employers need to ensure they adhere to legal requirements, while employees must be informed of their protections to advocate for equitable treatment at work. 

This article provides an overview of the DIFC Employment Law, detailing its key provisions and recent amendments. 

What is DIFC Employment Law?

The DIFC Employment Law caps the maximum working hours at an average of 48 hours per week. (unless the employer has first obtained the employee’s written consent for extended working hours).

An employee is entitled to a rest period of not less than eleven (11) consecutive hours in each twenty-four (24) hour period and an uninterrupted rest period of not less than twenty-four (24) hours in each seven (7) day period. The Law further provides that where the working time for an employee during a workday exceeds six (6) hours, the employee is entitled to rest and prayer breaks of at least one (1) hour in aggregate during the workday.

Core Employment Rights Under DIFC Law

1. Working Hours and Overtime

Vacation Leave

An Employee who has been employed for at least ninety (90) days is entitled to paid Vacation Leave of twenty (20) workdays in each Vacation Leave Year.

Special Leave

A Muslim Employee who has completed at least one (1) year of continuous employment with an Employer shall be entitled to special unpaid leave not exceeding twenty-one (21) days to perform the Hajj pilgrimage once during the period of their employment with the Employer.

Sick Leave

An Employee is entitled to Sick Leave of sixty (60) consecutive or intermittent workdays in aggregate in twelve (12) months. The employer is required to pay Sick Pay to an Employee at: 

(a) one hundred percent (100%) of the Employee’s Daily Wage for the first ten (10) Work Days of Sick Leave taken in a twelve (12) month period; and 

(b) fifty percent (50%) of the Employee’s Daily Wage for the next twenty (20) Work Days of Sick Leave taken in the same twelve (12) month period.

The Employee shall not be entitled to receive any Wage for any additional Sick Leave taken in the same 12 (twelve) month period. 

Where an Employee takes more than an aggregate of sixty (60) Work Days of Sick Leave in a twelve (12) month period, the Employer may terminate the Employment Contract with immediate effect on written notice to the Employee. 

Maternity Leave

A female employee may take maternity leave for up to sixty-five (65) workdays. An Employer shall pay Maternity Pay to an Employee according to the following: 

(a) one hundred percent (100%) of the Employee’s Daily Wage for the first thirty-three (33) Work Days of Maternity Leave and 

(b) fifty percent (50%) of the Employee’s Daily Wage for the next thirty-two (32) Work Days of Maternity Leave.

End-of-Service Benefits

An Employee who is not registered with the General Pension and Social Security Authority (GPSSA) and who completes continuous employment of at least one (1) year or more with their employer (before or after the Qualifying Scheme Commencement Date) is entitled to a Gratuity Payment for any period of service (before the Qualifying Scheme Commencement Date) on the termination of their employment.

An Employee’s Gratuity Payment is calculated as follows: 

(a) an amount equal to twenty-one (21) days of the Employee’s Basic Wage for each year of the first five (5) years of service before the Qualifying Scheme Commencement Date; and 

(b) an amount equal to thirty (30) days of the Employee’s Basic Wage for each additional year of service prior to the Qualifying Scheme Commencement Date, provided that the total Gratuity Payment shall not exceed an amount equal to two (2) times the Annual Wage of the Employee.

Key Responsibilities of Employers

1. Providing a Written Employment Contract

An Employer must provide an employee with a written Employment Contract in English within seven (7) days of the commencement of the employment. 

The Employment Contract should contain information such as the names of the employer and employee, date of commencement of employment, the employee’s wage, hours and days of work, entitlement to vacation leave, job title, etc. 

2. Ensuring a safe working environment

Every Employer has a duty to provide a safe working environment for its employees by taking the following steps (as far as reasonable): 

(a) Set up systems to reduce health risks from fires and the handling of dangerous items and substances 

(b) Give employees information, instructions, training, and supervision in a language they understand to ensure their safety at work 

(c) inform each employee in writing at the time of recruitment about any dangers related to their job and the safety measures they need to take 

(d) provide and maintain adequate safe paths to and from the workplace.

3. Adhering to anti-discrimination and harassment policies

An employer must not discriminate against an employee regarding employment or any term or condition of employment on the grounds of the employee’s: 

(a) sex; 

(b) marital status; 

(c) race; 

(d) nationality; 

(e) age; 

(f) pregnancy and maternity; 

(g) religion; or 

(h) mental or physical disability. 

Discrimination includes treating an employee less favourably than another because of a prohibited ground and/or engaging in unwanted treatment or conduct related to one of the prohibited grounds that has the purpose or effect of creating an intimidating, hostile, degrading, humiliating, or offensive workplace for an employee or violating an employee’s dignity. 

Employee Obligations and Rights

Employees are required to: 

(a) serve their employer faithfully; 

(b) comply with their employer’s reasonable and lawful instructions; 

(c) exercise reasonable skill and care in performing their duties for their employer; 

(d) not disclose an employer’s confidential information, trade secrets, or personal data of other employees (without consent); 

(e) not disrupt an employer’s business. 

Termination and Notice Period Regulations

Required notice periods

Either party may terminate the employment without cause by giving a written notice. The duration of the notice period depends on the employee’s length of service. The written notice shall not be less than:

– Seven days if the period of continuous employment is less than three months;

– Thirty days’ if the period of continuous employment is more than three months but less than five years;

– 90 days’ notice if the period of continuous employment is more than five years. 

Grounds for Immediate Termination

Either party may terminate the employment with immediate effect for cause in circumstances where the conduct of one party warrants termination and where a reasonable employer or employee would have terminated the employment as a consequence thereof.

Conclusion

The DIFC Employment Law establishes a balanced framework for workplace relationships in this financial hub. It safeguards employee rights while promoting a productive business environment. 

Understanding these regulations is crucial for both employers and employees to ensure compliance and fair treatment. By adhering to these guidelines, businesses can thrive and contribute to the DIFC’s continued growth and success.