ADGM issues new Employment Regulations and Rules

ADGM RA 28/10/2019
ADGM issues new Employment Regulations and Rules

Abu Dhabi Global Market (ADGM), the International Financial Centre in Abu Dhabi, has issued new Employment Regulations 2019 (Regulations) and the Compensation Awards and Limits Rules 2019 (Rules), replacing its previous legislative framework regarding employment matters. The new legislation takes into consideration the public consultation that was undertaken earlier this year to review and improve ADGM’s legislative framework relating to employment.

The new Regulations and Rules strengthen ADGM’s employment framework in the interests of both employers and employees. The amendments were formulated after the ADGM Registration Authority conducted a thorough multi-jurisdictional benchmarking exercise to promote the highest standards in employment practice among firms operating on Al Maryah Island.

The key changes introduced by the Regulations and Rules include:

  • New overtime provisions for employees
  • Aligning certain employees’ entitlements with those on shore (including repatriation flight tickets and sick leave)
  • Changes allowing employers and employees more flexibility in negotiating notice periods
  • Introducing protective provisions for youth aged between 15 and 18 years
  • Introducing a discretionary power to the ADGM Courts to impose a penalties on employers for failure to pay employees’ entitlements due on termination

The Regulations will come into force on 1 January 2020.

Commenting on the new Regulations and Rules, Dhaher bin Dhaher Al Mheiri, CEO of the ADGM Registration Authority, said: “ADGM has been listening to employers and employees and working closely with stakeholders as well as market experts to improve the ADGM’s employment framework. The new changes, together with the existing world-class legislative and regulatory framework, is part of ADGM's ongoing commitment to international best practices, and will support ADGM entities to attract and retain the best talent available”. For more information on the new ADGM Employment Regulations 2019 and the Compensation Awards and Limits Rules 2019, please visit the dedicated webpage here: Employment Regulations 2019 (Compensation Awards And Limits) Rules 2016..


For further enquiries, please contact:
Joan Lew
Telephone: +971 2 333 8858

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