The United Arab Emirates (UAE) has the best labour laws as they secure employee and employer rights. Considering Dubai International Financial Centre (DIFC), the largest global financial centre, there are a few modifications to the employment laws to ensure international standards of employment laws within the DIFC. Amongst the definite revisions, the latest amendments in the DIFC Law No.1 of 2024 will change the inputs made for Qualifying Schemes (including DEWS) and initiate the end-of-service gratuity accrual for sanctioned individuals. The latest amendment in the UAE employment law addresses the concerns of the UAE and GGC nationals’ pension and sanctioned employees of the DIFC. Dubai Lawyers can be lawyers for DIFC if they have expertise for DIFC. But Dubai Law Firms are quite famous for serving people and companies related to DIFC.
Developments for UAE and GCC National Employees
The UAE and GCC nationals had issues as they were not enrolled in the DEWS (DIFC Employment Workplace Savings) system. They received fewer contributions than non-UAE and GCC nationals registered with the DEWS system.
Advances in the DIFC employment laws have concerned the treatment of end-of-service gratuities given to UAE and GCC national employees and non-UAE and GCC national employees. Earlier, they were exempted from Qualifying Scheme contributions, but now they have to ensure contributions to the Qualifying Scheme are eligible for UAE/GCC national employees. The new legislation has been introduced for transparency amongst employees looking forward to pension years.
Based on new legislation, DIFC employers must compare the support and benefits provided to those who are not UAE/GCC nationals with those UAE/GCC national, by to the General Pension and Social Security Authority. If low payment is found in the process, the employer has to make an extra payment to a Qualifying Scheme. However, the Amendment Law ensures that UAE and GCC nationals are fairly treated for their full salary according to contributions.
Contribution to Sanctioned Person at the End of Service
The new Amendment Law provides sides for handling end-of-service gratuity for the said persons. A sanctioned person is known to be an individual who is put on the sanctions list that is developed and recognized by the UAE Federal Cabinet or any other applicable sanctions list. However, the law demands an increase in the end-of-service gratuity for employees affected by sanctions. Yet, they are not classified as Sanctioned Persons or have not received termination. At that stage, the employer has to transfer any collected end-of-service benefits to the employee or into the Quality Scheme, whichever seems to be a better option.
It is crucial to understand that employers are not held responsible for any financial gains or losses that may have as the proceeds were not invested in the Qualifying Scheme, to having the requirement to keep end-of-service-benefits separate from everything else.
The new law at DIFC represents an important development regarding the employment laws in the DIFC that focuses on equality and compliance. There are following rules to be applied in the new legislation where the employers must ensure:
If their UAE/GCC national employees qualify for better benefits compared with their current pension contributions that could be given if the employee was a non-UAE/GCC national, it would be better for them.
End-of-service gratuity is to be saved for employees affected by the sanctions, especially when they are not responsible for the financial performance of the money saved in a qualifying scheme. It has to be done to meet the new requirements of the DIFC employment laws.
How Can Ask the Law Help You?
The UAE nationals rely on DIFC for its safe and secure platform to conduct business activities. However, businesses registered with the DIFC are administered daily for their operations in the DIFC. Our employment lawyers stay well-informed about the UAE legal system, especially the changes in the UAE employment laws. We will provide accurate information about the new legislation and how you can benefit from it.
Interestingly, our lawyers have worked with several clients with pension years. We understand that gratuity is valuable to the old age population. Therefore, we ensure careful insights regarding people looking forward to their end-of-service gratuity.
We ensure that our employment lawyers will provide you with the best legal advice that allows you to enjoy the benefits of gratuity. Contact us today if you want a lawyer to explain everything about DIFC and its laws.
