The new ADGM Employment Regulations 2019 (the New Regulations) will come into force on 1 January 2020. The New Regulations follow a public consultation that was implemented earlier this year and revoke the old ADGM Employment Regulations 2015, as amended (the Old Regulations). This article highlights the five fundamental changes that ADGM employers need to know.
The New Regulations introduce a statutory overtime for eligible employees. The Old Regulations provide that working time shall not exceed 48 hours for each seven day period unless the employee has given prior written consent. According with the New Regulations:
2. Sick pay
While the Old Regulations established 60 business days sick leave at full pay, the New Regulations, despite still providing for 60 business days of sick leave, its respective pay is now broken down into:
a) 10 business days on full pay;
b) 20 business days on half-pay; and
c) 30 business days on no pay.
The above breakdown is more in line with the position in the Federal Labour Law and also reflects the position under DIFC Law No. 2 of 2019 (the DIFC Employment Law), which came into force on 28 August 2019.
Moreover, the New Regulations provide that the employer may terminate an employee who has exceeded 60 business days sick leave in any 12 month period, save where the employee has taken sick leave due to a Disability.
Since the Ministry of Human Resources and Emiratisation agrees with one and three month notice periods, and the DIFC Employment Law has a three month notice period for employees with five or more years of service, this is an remarkable change.
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