The DIFC Employment Regulation arrived into power on 14 January 2020 amending the DIFC Law No. 2 of 2019. The principal reason of the modification was to replace the principle of conclude-of-assistance gratuity with the DIFC Employee Place of work Cost savings System (DEWS) or an different qualifying plan. The introduction of DEWS aligned the framework with international very best tactics.
Now, a person yr on, the DIFC intends to even more amend the current regulation to supply clarification and tackle any other spots of uncertainty. The proposed legislative variations search for to make clear defined phrases and rectify probationary intervals under shorter, fastened-time period contracts as effectively as the accrual of once-a-year depart.
Importantly, the amendments will render any settlement or arrangement that seeks to reclassify recurring payments to staff as non-recurring payments to be null and void and unenforceable. This helps prevent companies from reducing an employee’s simple wage calculation for the applications of the main gain contributions by an employer underneath DEWS.
The DIFC Authority has published the proposed legislative changes for a 30-day community consultation time period, ending on 28 March 2021. The session paper is offered below.
For more details in relation to the DIFC Employment Regulation, you should contact
Joanna Stewart ([email protected])