Abu Dhabi Global Market has released new employment law for firms that will allow them to begin hiring staff who will work remotely starting April 1. The provisions include flexible modes of working and clarity, so that there is a better understanding of rights and obligations between employer and employee.
Changes to New Employment Law:
- Remote and Part Time Work: The definition of the term “employee” now includes remote and part-time employees, thus allowing the hiring of such employees by ADGM-regulated companies from outside the physical confines of the company.
- Location: Employees who are remote may reside inside or outside the UAE. Their principal work location however will not be on the employer’s ADGM premises.
- Timeframe for Implementation: These regulations will come into force on April 1, 2025. This leaves the reasonable time for the employers to update their internal policies, employment contracts, and any other employment-related matters as per the new law.
- Job Contract: It must specify in the job contract the nature of employment of remote worker. Employers are also responsible to provide and maintain the necessary technical equipment for remote working.
- Work Permits and Visa Responsibility: The employer will obtain and bear the cost of work permit, residency visa, and ID cards for all employees, including remote workers.
- Part-time Employment: It must state in the part-time employment contract that work hours are lesser than eight hours in a day or under five working days in a week or any provision which fails to qualify for full-time employment.
- Protect Employees Rights: The provisions assure rights to be accorded to an employee against discrimination, victimization, and other rights relating to probationary periods.
Additional Clarifications:
- Period of Probation: This time is limited to a maximum of six months within which a new employee is considered to be on probation. Employees under probation would also be entitled to leave days and sick days, while pay would not be disbursed under sick leave. Contract termination by an employer will be made through a week’s notice during the probation period.
- Anti-Discrimination Policies: It is against the law for employers not to discriminate against their employees on the basis of sex, nationality, marital status, pregnancy, and disability, not excluding religion and age. Victimization of employees for lodging their complaints on discrimination would also be prohibited.
These important reforms were announced by the CEO of ADGM Registration Authority Hamad Sayah Al Mazrouei to mark the international trends that move from traditional workplaces to modern practices and cutting-edge conditions of work organization under which employees are kept safe and secure.
It depicts the growth trend of flexible working and presents an unabated commitment by the ADGM to modernizing employment laws according to worldwide standards.
