By: Salma Abdussalam
The Dubai International Financial Center (DIFC) is a well renowned international business hub which has its own independent legal and regulatory framework. In line with the DIFC’s aim to continuously develop its governance regime, a new Employment Law, Law No. 2 of 2019, has recently been enacted to take effect on Wednesday, 28th of August 2019 (90 calendar days after the enactment). The new law shall apply to:
The new law repeals and replaces DIFC Employment Law No.5 of 2005 and considers its main objective to be providing the employees a minimum standard of employment, promoting their fair treatment by employers and adapting employment practices aimed at contributing to the prosperity of the DIFC establishment.
Some of the key issues addressed by the new legislation include:
The new Employment Law also recognises seconded, part-time and short-term employees. All provisions set out in the new Law will be administered by the DIFC Authority (DIFCA), who may impose fines and penalties or both as well as set limits on compensation for violations of the Law. Claims in regard to the new Law must be brought upon the court within six (6) months of the relevant employee’s termination date.
As such, it can be said that the DIFC Employment Law No. 2 of 2019 seeks to balance the interests of the employees and the employers by reducing sick pay and sick leaves and introducing family-friendly paternity leave and indicates a move towards a more practical governance approach to employment.
For the full text of the law, click here.