Consultation on proposed revision of ADGM Employment Regulations 2019 – Stephenson Harwood's response

We have responded to the Abu Dhabi Global Market (ADGM) Registration Authority's consultation on the proposed amendments to the ADGM Employment Regulations 2019. 

The consultation, which was launched on 26 July 2024 and closed on 26 August 2024, sought feedback from stakeholders on various changes to the employment law framework in ADGM.

The main proposed amendments and consultation questions on which we provided comments include:

1. Remote / hybrid work: Clarification of the definition of 'employee' to include remote and hybrid workers and outlining the obligations for employers in relation to such workers.
2. Part-time work: Introduction of definitions of part-time employees and calculations of their entitlements.
3. Family-related rights: Adding entitlements for ante-natal appointments, paternity leave for adopting parents, nursing breaks and bereavement leave.
4. Discrimination and vicarious liability: Enhanced provisions on discrimination and victimisation and introducing the concept of vicarious liability that holds employers responsible for the actions of their employees.
5. Termination: Permitting termination of employment due to unauthorised absence, mandating the issuance of a certificate of experience and ensuring end of service gratuity is payable regardless of the termination reason.
6. Visas and work permits: Requiring employers to obtain work permits and identity cards before work commencement and clarifying the obligations for obtaining and cancelling visas.

We also shared our observations on settlement agreements, short-term employment, Ramadan working hours, maternity leave, 'whistleblowing', repatriation flights, attorney/client privilege, secondments, restricted covenants, limitation periods and litigation costs.

As a leading international employment law team with a roster of experienced specialist lawyers, we possess extensive expertise in the employment laws of the ADGM and related jurisdictions both within and outside the United Arab Emirates and the Middle East. Our knowledge encompasses UAE federal law, the laws of the Dubai International Financial Centre, and the laws of England and Wales, which are directly applicable in the ADGM. This positions us well to provide valuable insights and recommendations on the proposed amendments.

Our view

We welcome the Registration Authority's efforts to clarify ambiguities, reflect global changes in work practices and provide greater clarity on rights and obligations in the Regulations. We support many of the proposed amendments and commend the Registration Authority for introducing some progressive and beneficial changes for both employers and employees.

We have also highlighted some of the practical difficulties and potential implications that the proposed amendments may have for employers and employees in the ADGM and offered suggestions for improvements and alternative approaches in respect of certain aspects of the proposed amended Regulations.

What would you like to know?

If you would like to learn more about the proposed changes and our views on them, or if you would like to contribute to further discussions we may have with the ADGM Registration Authority regarding the proposed amendments, please feel free to get in touch. We are ready to help with related queries and preparations to implement required changes when the final Regulations are issued, such as updating employment contracts and internal policies.