The New ADGM Employment Regulations 2019

The New ADGM Employment Regulations 2019

The new ADGM Employment Regulations 2019 (Regulations 2019) have come into force on 1 January 2020. The new rules are launched after public consultation and superseded the old ADGM Employment Regulations, 2015. The provisions laid down in the new rules are as follows:

1. Overtime

The Regulations 2019 has introduced statutory overtime for the eligible employees. The working hours shall not exceed 48 hours for seven days of the week as well as an employee cannot opt out of it by submitting a written consent. The employees shall be entitled to overtime work if done over four months in excess of 832 hours. The employer needs to maintain time records for the employees who are working overtime.

2. Sick pay

The Regulations 2019 provides for the 60 business days of sick leave which shall compose of the following constituents

1. 10 business days on full pay;
2. 20 business days on half-pay; and
3. 30 business days on no pay.

3. Minimum Notice Period

The Regulations 2019 explicitly sets out that termination or resignation notice shall be in writing and there is elimination of 90 days or three months’ notice period if the employee has been in a continuous employment of five years or more with the same employer.

4. Fines and Potential Compensation

The Regulations 2019 provide that for non-compliance of the new rules, the fines and compensation shall be pursued as per Employment Regulations 2019 (Compensation Awards and Limits) Rules 2019.

The recent changes in the employment regulations in 2019 at ADGM are result of serious public consultation and deliberations and are also in line with Federal Law No. 8 of 1980 which is the Federal Labour Law. Also, brings more ADGM Rules regarding employment I tandem with the DIFC Law No. 2 of 2019 which is popularly known as DIFC Employment Law which came into effect in 2019.