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New DIFC Employment Law, Law No.2 of 2019


New DIFC Employment Law, Law No.2 of 2019

The Vice president and Prime Minister of UAE, His Highness Sheik Mohammed bin Rashid Al Maktoum enacted the new Employment Law, Law No.2 on Wednesday 2019. The law will come into force on 28th August 2019. The main reason for the enactment of the new law is to overcome many issues of the current Employment Law such as paternity leave, sick leave and end of service settlement. By issuing a statement the DIFC court says that the new law will complement its best international practice. The governor of the DIFC His Excellency Essa Kasim, in his statement mentions that the new DIFC employment law will help the firms working under DIFC to flourish by protecting and balancing the primary interest of both employer and employee, because the center creates an attractive environment.

This new law is applies to all employers and employees which also includes part-time and short-term employees. The main objective of the new employment law is to maintain a balance between the needs of employer and employee working in the DIFC center, by creating and following the standard employment rules which contribute to the success of the center.

Under the provisions of this law the employer can expand the employee duty, can reduce the statutory sick pay and also consider settlement agreement of employer and employee. This law limits the application of late-fine for the non-payment of end service settlement on time. Under the provision of this new law the employee is given 5 days paternity leave and the penalty for discrimination to ensure the primary condition of employment, residency sponsorship and visa.