The Abu Dhabi Global Market (ADGM) is poised to update its Employment Regulations, initially enacted in 2019. These regulations were designed to set minimum employment standards, ensure a fair balance between employee and employer rights, and foster effective employment practices within ADGM. Since their inception, the Regulatory Authority (RA) has recognized the need for adjustments to better reflect evolving global work practices and to provide clearer guidance on rights and obligations for both employees and employers.

The RA has recently issued a Consultation Paper inviting public feedback on these amendments to ADGM Employment Regulations. This consultation is crucial for all ADGM-licensed employers, their employees, and prospective employees, as well as their legal advisors.

Here’s a breakdown of the key changes being proposed:

Proposed Amendments to ADGM Employment Regulations

1. Employee Entitlements and Definitions

• Probationary Period Entitlements: Clarification on employee entitlements during probation.
• Broadening the Definition of ‘Employee’: Updated to include full-time remote workers and flexible arrangements.
• Part-Time Employee Definition: Introduction of a new definition and method for calculating entitlements.

2. Working Arrangements

• Remote and Hybrid Working: Explicit permission for remote and hybrid working arrangements.
• Simplified Overtime Calculation: Removal of complex overtime calculation methods.

3. Leave Entitlements

• Enhanced Parental Leave: Additional entitlements for adopting parents and paid paternity leave for adopting fathers.
• Nursing Breaks for Female Employees: Entitlement to nursing breaks.
• Bereavement Leave: Leave entitlement for the death of close family members.

4. Employment Duties and Termination

• Expanded Employee Duties: Broadening the list of employee duties.
• Termination Due to Unauthorized Absence: Employers’ right to terminate employment for unauthorized absences.
• Certificate of Experience: Eligibility for a certificate of experience upon employment termination.
• End of Service Gratuity: Clarity on gratuity payments regardless of the reason for termination.

5. Discrimination and Compensation

• Discrimination and Victimization: New provisions addressing these issues and vicarious liability.
• Integration of Compensation Awards Rules: Integration of compensation awards rules into the main regulations.

6. Work Permit and Identity Card Requirements

• Work Permit and Identity Card: Requirements for obtaining and canceling work permits and identity cards in ADGM.

Next Moves for Proposed Changes to ADGM Employment Regulations

The RA is seeking comments on these proposals by 26 August 2024. Following this, the RA and the ADGM Board of Directors will review the feedback and make any necessary adjustments before finalizing and enacting the updated regulations. These changes are set to enhance employment practices within ADGM, providing clearer guidelines and more equitable entitlements.

Stay tuned for further updates on the proposed changes to ADGM Employment Regulations and if you want to know more about the existing key requirements and best practices ADGM Employment Regulations, dive into our article.