UAE: New Employment Law Introduced

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The newly introduced Employment Law in Dubai addresses key issues such as paternity leave, sick pay and end-of-service settlements.

The new law, which will come into effect on August 28, 2019, clarifies the application of DIFC’s employment regime to employers and employees, including seconded, part-time and short-term employees.

Employer-focused provisions include expansion of employee duties, reduction of the statutory sick pay, limiting the application of mandatory late penalty payments for end-of-service.

Employee-focused provisions include the introduction of five days of paternity leave and penalties for discrimination. Penalties have also been introduced to ensure adherence to basic conditions of employment, visa and residency sponsorship.

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The new law was subject to substantial research and global benchmarking, as well as through public consultation, which helped shape the law to ensure that the DIFC remains the most sophisticated and business-friendly Common Law jurisdiction in the region.