Abu Dhabi Global Market is an international financial centre and free zone located on Al Maryah Island in the United Arab Emirate’s capital Abu Dhabi.
Objectives of the Regulation
- For the betterment of the working conditions of the employees.
- For balance of rights and obligations between the employer and employee.
- To foster the employment opportunities.
Any clause in an agreement which waives the minimum requirements in the Regulations, except expressly permitted under the Regulation, shall be void. The Employer shall be responsible for obtaining, maintaining and paying the cost of the Employee\’s work permit and, as applicable, the UAE residency visa and UAE identity card. Any amendment to the Contract of Employment of an Employee must be in writing and signed by the Employee except where such change is for the benefit of the Employee.
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The Employer may subject the Employee to a probationary period, provided that such period does not exceed 6 months and is specified in the Contract of Employment. During the probationary period either the Employer or the Employee may terminate the Contract of Employment without cause on 1 week\’s written notice to the other or for cause without notice.
AMENDMENTS MADE TO THE EMPLOYMENT REGULATIONS, 2019
As per the previous regulation, employers were required to clear dues within 14 days of the termination. Failure to do so will result in a penalty that would be equal to the employees’ daily wages for each day.
While the payment period within 14 days prevails, the ADGM court has complete discretion to decide upon the quantum of penalty imposed in any given case to ensure that the fine is just and equitable.
Parties terminating employment were required to serve a 90-day termination notice if they have served for a period exceeding five years as per the previous regulation, this requirement has now been removed. The amendment increases flexibility for employees and employers to agree upon notice periods other than those prescribed in the regulations.
The law, however, prescribes a minimum notice period in the following case: Seven days’ notice period served in writing for employment term extending between one to three months. For a term extending beyond three months, a 30 days’ notice period is required to be served. Employees are now entitled to overtime compensation.
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