Dubai, UAE—In a significant update to its regulatory framework, the Dubai International Financial Centre (DIFC) announced the DIFC employment amendment law, effective 14 March 2024.
Spearheaded by His Highness Sheikh Mohammed bin Rashid Al Maktoum, these changes align DIFC’s laws with international best practices while addressing the region’s specific needs.
Here’s a brief of the key aspects of the latest DIFC employment law amendment.
Contact Al Mulla Labor Lawyer in Dubai. Click the WhatsApp icon below or go to the Contact Us page. Locations: Dubai, Abu Dhabi and Ras Al Khaimah.
Table of Contents
DIFC Employment Amendment Law
- Top-Up Payments for GCC Nationals:
The law now mandates that DIFC employers make additional “top-up” payments into a Qualifying Scheme for their GCC national employees.
This requirement kicks in when the standard GPSSA contributions are less than what would have been accrued as monthly end-of-service benefits under the previous law.
The new rule sets a de minimis threshold of AED 1,000 per month, ensuring that GCC nationals receive comparable end-of-service benefits to their non-GCC counterparts. - Sanctions Compliance Adjustments: The amendments address scenarios where international sanctions prevent contributions to a Qualifying Scheme.
Under the new law, if an employer or employee is subject to such sanctions, the employer is obligated to accrue end-of-service benefits on behalf of the affected employees.
This accrual continues until the sanctions are lifted or the employment relationship is terminated, ensuring that employees do not lose their entitlements due to external political factors. - Regulatory Enhancements: The legislative updates extend the Registrar of Companies (RoC) powers, particularly in regulating entities that operate beyond standard business hours.
This move aims to bolster compliance and oversight, facilitating a more controlled and secure business environment within DIFC.
Latest DIFC Employment Law Amendment Services
Al Mulla Lawyers, a leading legal firm with deep expertise in the Dubai International Financial Centre (DIFC) regulatory landscape, offers specialized services tailored to the recent DIFC employment amendment law.
Clients looking to navigate the new legal complexities can benefit from the following services:
- Compliance Consultation: Expert guidance on aligning business operations with the new “top-up” payment requirements and sanctions-related provisions.
- Employee Benefit Schemes: Assistance in setting up and managing Qualifying Schemes that comply with the new laws and safeguard employer and employee interests.
- Sanctions Navigation: Strategic advice on managing and accruing employee benefits amid international sanctions, helping businesses avoid legal pitfalls.
- Regulatory Liaison: Acting as a liaison between businesses and the Registrar of Companies to ensure compliance with enhanced regulatory powers, especially for those operating outside standard business hours.
Al Mulla Lawyers provides these tailored services to ensure that businesses within DIFC remain compliant and thrive under the updated legal framework, promoting a stable and equitable business environment.
FAQs about DIFC Work Amendment Regulation
Conclusion about DIFC employment amendment law:
The recent amendments to the DIFC Employment Law are a testament to the centre’s dedication to maintaining a cutting-edge legal and regulatory environment.
These changes not only ensure fairness and legal certainty for employees, particularly GCC nationals, but also enhance DIFC’s overall compliance framework.
By setting these rigorous standards, DIFC continues to secure its position as a premier global financial hub in the MEASA region, fostering an attractive and equitable working environment for its diverse workforce.
Contact Al Mulla Lawyers & Legal consultants today! Click the Whatsapp icon below or visit our Contact Us page.
Find us at these locations:
– Dubai: Deira, Port Saeed, Street 8, City Avenue Building, Office 705-708.
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A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.
