New Employment Law Enacted in Dubai

Sheik Mohammad Bin Rashid Al Maktoum is the vice president and prime minister of United Arab Emirates and the ruler of Dubai has enacted a new DIFC, which is law number two for the year, enacted on 12th June 2019.

Dubai International Financial centre stated that the newly enacted law tributes to international best practices with the major employment issues like paternity leave, sick pay and end of service settlements. This law will be applicable from August 28, 2019.

Essa Kazim’s view

The governor of DIFC, Essa Kazim’s words were “The DIFC Employment Law enhancements are integral to creating an attractive environment for the almost 24,000-strong workforce based in the DIFC to thrive while protecting and balancing the interests of both employers and employees."

Introduction of Penalties and Leaves

The provision establishes the introduction of five days of paternity leave and penalties for discrimination. Penalties have also been introduced to make sure that basic conditions are been fulfilled like employment, Visa and residency sponsorship.

 The new law is introduced to lift the matter of research and global marketing and through public deliberation which helped to amend the law and to make sure that DIFC plays the role of the most worthy, sophisticated and business-friendly common law jurisdiction in the region.

Employer and Employee Needs Equilibrium

The new law which will be having effect from August 28, 2019, elucidate DIFC’s authority to part-time, seconded and short term employers and employees.

According to them, the law should stress on the necessities to balance the needs between the employers and employees and that would contribute to the success of the centre.

Expansion of employee duties, reduction of the statutory sick pay, restricting the application of mandatory late penalty payment is included in the provision for establishing settlement agreements between employer and employee.

Previous employment laws on leaves

Annual Leave

In each year of service, An employee is entitled to take more than two leaves in a month if the service is more than six months or less than a year in the company, followed by thirty days annually if it exceeds more than a year. The employee can take leave from the fraction of the last year.

 It is up to an employee to decide how he or she wants to take the annual leave, the date of commencement of annual leave can be decided by the employer at his or her discretion.

However, if the employee doesn’t turn up to duty immediately after his vacation’s expiry he or she shall be deprived of the pay for the absence.

Maternity Leave

Issued by Sheikh Mohammed bin Rashid Al Maktoum, any part time or full time in a permanent position in the company can avail for ninety days maternity leave from the delivery date.

She can also apply for avail for maternity leave thirty days prior to her due date as in the condition that the leave is taken continuously.

Sick Leave

The employee will have to report to the employer any kind of illness which is creating hindrance and preventing him from his work within a maximum number of two days. During the probation period, an employee is not entitled to sick leave. After three months of continuous service, the employee is entitled to full wage during the first fifteen days and a half wage in the next thirty days. 

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