Proposed Amendments to DIFC Employment Law

The DIFC Employment Regulation came into pressure on 14 January 2020 amending the DIFC Legislation No. 2 of 2019. The principal objective of the amendment was to substitute the concept of stop-of-provider gratuity with the DIFC Staff Workplace Personal savings Strategy (DEWS) or an different qualifying scheme. The introduction of DEWS aligned the framework with intercontinental greatest procedures.

Now, just one 12 months on, the DIFC intends to even further amend the existing legislation to deliver clarification and tackle any other areas of uncertainty. The proposed legislative improvements look for to make clear defined conditions and rectify probationary intervals less than shorter, fastened-phrase contracts as perfectly as the accrual of annual go away.

Importantly, the amendments will render any settlement or arrangement that seeks to reclassify recurring payments to personnel as non-recurring payments to be null and void and unenforceable. This prevents companies from decreasing an employee’s fundamental wage calculation for the uses of the core reward contributions by an employer underneath DEWS.

The DIFC Authority has published the proposed legislative variations for a 30-working day public session period, ending on 28 March 2021. The consultation paper is accessible below.

For additional facts in relation to the DIFC Work Law, make sure you contact
Joanna Stewart (jstewart@davidsoncolaw.com)