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The new ADGM Employment Regulations 2019 – What changed? – Part 2 (of 2)

The new ADGM Employment Regulations 2019 – What changed? – Part 2 (of 2)

13 Jan 2020
The new ADGM Employment Regulations 2019 – What changed? – Part 2 (of 2)

The fundamental changes under the new ADGM Employment Regulations 2019

The new ADGM Employment Regulations 2019 (the New Regulations) came into force on 1st January 2020. 

The New Regulations followed a public consultation that was implemented earlier this year and revoke the old ADGM Employment Regulations 2015, as amended (the Old Regulations).
 
Further to our previous article, this article highlights the last three of the five fundamental changes that ADGM employers need to know.
 

Minimum Notice Period

The New Regulations provide notice to be in writing and eliminate the 90 calendar day minimum notice period for continuous employment of five years or more. The minimum notice is now therefore:
  • Seven calendar days, should the period of continuous employment is less than three months; and
  • 30 calendar days, in case the period of continuous employment is three months or more.

Fines and Potential Compensation

The Employment Regulations 2019 (Compensation Awards and Limits) Rules 2019 (the Rules) prescribe the fines and potential compensation that can be pursued for non-compliance with the New Regulations. 
 
For example, should an employer fail to pay all wages and any other amounts owing to an employee within 14 calendar days of said amounts becoming due, the Court may decide to award a compensation, as it considers just and reasonable up to a maximum corresponding to the last daily wage for each calendar day during which the employer failed to comply.
 
Discrimination
The anti-discrimination rules are expanded to include colour as a protected class. Moreover, the Rules establish that, in case of breach of the section 54 (discrimination provisions), the Court:
  • May choose to order compensation subject to a cap of three years’ basic wages; and
  • Has the power to issue recommendations to the employer to take specific measures within a determined period of time and if the employer fails to comply, a fine not exceeding USD 20,000 can be enforced.
 

Preparing for the New Regulations

ADGM employers should:
  • Consider whether any employees will be subject to statutory overtime. It is uncertain how the omission regarding overtime will be interpreted, as it is quite wide and  therefore has the potential to lead to dispute. If there is probable uncertainty concerning a particular role/job, it will be advisable to provide statutory overtime.

If you require legal assistance in relation to your employment matter, please contact Helena

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