The Abu Dhabi Global Market (“ADGM”) has issued new employment regulations (the “New Regulations”), which will come into effect on 1 January 2020 and repeal the existing 2015 employment regulations (the “2015 Regulations”). The New Regulations can be read in full here. This follows hot on the heels of the introduction of a new employment law in the DIFC (DIFC Law No. 2 of 2019, the “DIFC Employment Law”), which came into effect on 28 August 2019. You can read our commentary on the DIFC Employment Law here.
The New Regulations amend the 2015 Regulations in a number of key respects.
For employers, the key changes are:
- a reduction in sick pay from 60 days full pay to full pay for the first 10 business days, half-pay for the next 20 business days with the remaining 30 business days being unpaid, matching the minimum requirements under the DIFC Employment Law; and
- a shortened notice period of 30 days (previously 90 days) for employees who have been in continuous employment for a period of five years or more.
For employees, the key changes are:
- an entitlement to a repatriation flight on termination of employment (unless the employee is dismissed for cause); and
- a new comprehensive overtime regime.
New rules regarding compensation awards and limits, which are broadly the same as the previous rules issued in January 2016, have also been published by the Board of Directors of the ADGM and will come into effect on 1 January 2020.
Click here for the full article discussing the implications of the new regime and how it compares to the DIFC Employment Law.