Updated Employment Regulations in the Abu Dhabi Global Market (ADGM)

New Employment Regulations : Abu Dhabi Global Market (ADGM)

The Abu Dhabi Global Market ("ADGM") Registration Authority has released the Employment Regulations 2024 ("New Employment Regulations"), which represent a landmark transformation in the regulatory framework for workers and employers conducting business within the ADGM jurisdiction. These regulations, effective 1 April 2025, replace the current Employment Regulations 2019. The amendments mirror international changes in workplace practices, specifically flexible and remote working arrangements, employee safeguards, and greater compliance obligations. The amendments are intended to foster transparency, fairness, and competitiveness in ADGM's employment landscape, bringing it in line with international best practices.

This article gives an in-depth review of the major changes under the New Employment Regulations and emphasizes the important steps that employers must follow to be compliant by the effective date.

1. Broadened Definitions and Worker Classifications

The new Employment Regulations quite considerably broaden the definition of the term "employee" to capture remote workers. This extension means that employers may hire individuals working outside ADGM premises, which may be employees based in another emirate or even another country. The differential between full-time, part-time, and remote employees is thus now codified, enabling diverse and flexible employee structures.

1. Remote Employees

Individuals who perform their duties outside ADGM premises. If based outside the UAE, they are not required to obtain a UAE residence visa or an ADGM work permit.

2. Part-Time Employees

Employees who work fewer than eight hours per day or less than five days per week. Their leave entitlements and benefits are determined on a pro-rata basis.

2. Employment Contracts and Probation Periods

The new regulations require that written employment contracts must be given within a month of starting work. Changes to non-administrative terms are to be agreed and put in writing.

Probationary Periods are limited to six months, or where fixed-term contracts are six months or under, to half the length of the contract. While on probation, employees can take annual leave with permission and are also allowed unpaid sick leave. Employers are required to arrange repatriation flights in case an employee is dismissed on probation.

3.  Working Hours and Leave Entitlements

The laws restrict normal working hours to 48 hours a week, unless extended by written agreement. Another significant inclusion is the right of Muslim workers to a 25% cut in working hours during Ramadan without any reduction in remuneration.

1. Annual Leave

Employees may carry forward up to five days of unused leave, which must be used within the following year. Employers are required to provide a minimum of seven calendar days’ notice when directing employees to take mandatory leave.

2. Parental Leave

Five working days of paid paternity leave are awarded to fathers to be availed within two months of a child's adoption or birth. Adoptive mothers and women who have suffered stillbirth or miscarriage after 24 weeks are entitled to maternity leave.

3. Nursing Breaks

Nursing mothers who work full-time have a right to one hour's break per day for a maximum period of nine months after giving birth.

4. Bereavement Leave

Employees are eligible for five working days of paid bereavement leave in the event of the death of a parent, spouse, sibling, or child.

4. Immigration and Visa Compliance

The New Employment Regulations are heavily focused on immigration compliance. Employers are required to immediately cancel an employee's work permit and residence visa when the employment is terminated to prevent penalties. Significantly, visa cancellation cannot be made subject to an employee giving up any work-related rights.

5. Employee Duties and Conduct

Workers should:

1. Conduct themselves with integrity and avoid bribery or corruption of any kind;
2. Obey all legal directions from the employer;
3. Keep business information confidential.

6. Enhanced Anti-Discrimination and Whistleblower Protection

The regulations strengthen safeguards against workplace discrimination and victimisation. Pregnancy and maternity are specifically recognized as protected characteristics.

1. Workers who are victims of discrimination can receive compensation amounting to up to three years' pay.
2. Protections for whistleblowers have been put in place, providing security for individuals making protected disclosures in good faith.

7. Termination of Service and End of Service Gratuity (ESG)

More definitive procedures have been put in place regarding the process of termination:

1. A minimum period of seven days' notice for employees with service less than three months.
2. Thirty days' notice as a minimum for employees having more than three months of service.
3. Payment in lieu of notice needs to be in writing by the employee.
4. Employers need to pay all dues, except variable payments, within 21 calendar days from the termination date.

End of Service Gratuity (ESG): ESG is payable regardless of the cause of termination. Employers can provide alternative retirement savings or pension plans.

Repatriation Flights

Employers are required to provide repatriation flights to an employee's home country at termination unless:

1. The worker is a remote employee working outside the UAE;
2. The worker obtains alternative employment or sponsorship within 30 days.

9. Settlement Agreements and Legal Advice

Employees can waive some rights through settlement agreements; however, these have to satisfy certain conditions. Importantly, employees have to have obtained independent legal advice to ensure that the waiver is informed and voluntary.

10. Regulatory Oversight and Enforcement

The New Employment Regulations confer additional powers on the Registrar to ensure compliance, including:

1. Imposing administrative penalties;
2. Referencing non-compliance to the ADGM Courts;
3. Issuing procedural directions.
4. Increased Fines and Penalties

The updated regulations provide for increased fines in case of non-compliance, as ADGM seeks to demonstrate its commitment to an effective enforcement regime. Employers will need to reassess their existing HR practices to make sure they align with the new legal framework.

Conclusion

The ADGM Employment Regulations 2025 represent a significant step toward fostering a fair, transparent, and forward-looking workplace environment. By widening worker categories, strengthening employee protection, and facilitating compliance requirements, the regulations emphasize ADGM's dedication to international best practices. For employers, this is not just a legal update it's a chance to enhance internal processes, improve employee relations, and develop long-term resilience in an increasingly globalised and mobile labour force. Early adoption and complete implementation of the new regulations will guarantee compliance, minimize risk exposure, and uphold the organisation's reputation within the ADGM and beyond.