The Abu Dhabi Global Market (ADGM) has introduced substantial amendments to its Employment Regulations, with the new rules coming into effect on April 1, 2025. These changes are designed to modernize the ADGM’s labour framework, enhance employee protections, and provide clearer guidance for employers and employees within the ADGM jurisdiction1.

Table of Contents

  • Overview of ADGM Employment Law Updates 2024
  • Key Amendments and Their Impact
  • What Employers and Employees Need to Do
  • Frequently Asked Questions
  • Contact Yungo Law for ADGM Employment Law Advice

Overview of ADGM Employment Law Updates 2024

The ADGM Employment Regulations 2024 introduce a series of reforms that reflect global best practices and the evolving nature of work. The amendments focus on flexibility, transparency, and fairness in the employment relationship, while ensuring compliance with international standards.

Key Amendments and Their Impact

  1. Expanded Definition of ‘Employee’
The updated law broadens the definition of ‘employee’ to accommodate remote hiring and flexible work models. This allows ADGM-registered companies to employ talent from anywhere, supporting hybrid and remote work arrangements.
  2. Mandatory Written Employment Contracts
Employers must issue a written employment contract within one month of an employee’s start date. Any amendments to the contract require mutual consent, ensuring that both parties are fully informed and protected.
  3. Probationary Period and Repatriation
    • The probationary period is set at six months, or half the contract duration if the contract is for six months or less.
    • If an employee is terminated during probation, the employer must provide a repatriation flight, unless the employee is a remote worker or terminated for cause.
  4. Working Hours and Overtime
    • The standard workweek is capped at 48 hours.
    • Any additional hours require the employee’s written consent, reinforcing employee rights and work-life balance.
  5. Enhanced Leave Policies
    • Paternity Leave: Fathers are entitled to five days of paid leave within two months of childbirth or adoption.
    • Maternity Leave: Now covers adoptive mothers and cases of stillbirth or miscarriage after 24 weeks.
    • Bereavement Leave: Five days of paid leave for the death of a close family member.
  6. Strengthened Anti-Discrimination Protections
    • Pregnancy and maternity are now expressly protected under anti-discrimination laws.
    • Remedies for discrimination or victimization may include compensation of up to three years’ wages.
  7. Termination and End of Service Gratuity
    • Minimum notice period: Seven days for employees with less than three months of service, and thirty days for those employed longer.
    • All outstanding wages must be paid within 21 calendar days of termination.
  8. What Employers and Employees Need to Do
    • Update Employment Contracts: Ensure all contracts comply with the new ADGM requirements.
    • Revise HR Policies: Update internal policies to reflect new leave entitlements, anti-discrimination measures, and remote work provisions.
    • Train HR Teams: Educate staff on the new regulations to ensure compliance and avoid penalties.
    • Timely Settlements: Pay all final dues within the stipulated 21-day period after employment termination.

Frequently Asked Questions

Who is covered by the ADGM Employment Regulations 2024?

All employers and employees operating within the ADGM jurisdiction, except for dual-licensed entities whose employees are governed by UAE Federal Labour Law.

What happens if an employer fails to comply with the new rules?

Non-compliance can result in penalties, compensation claims, and reputational damage. Employers are advised to update their practices promptly.

re remote workers covered under the new regulations?

Yes, the expanded definition of ‘employee’ allows for remote and flexible work arrangements under ADGM-registered companies.

Contact Yungo Law for ADGM Employment Law Advice

For tailored legal advice or support with updating your employment contracts and HR policies in line with the ADGM Employment Law amendments, contact Ahmed Sabry or Clotilde Iaia at Yungo Law.

Stay informed and compliant with the latest ADGM employment law updates. For more information, reach out to Yungo Law’s expert team today.

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