UAE: New employment law allows ADGM firms to hire remote workers from April 1

New employment regulations issued in Abu Dhabi enable companies to hire remote workers and allow for more flexible working arrangements. The Registration Authority (RA) of the international financial centre of Abu Dhabi – ADGM published the new laws that “provide greater clarity to employers and employees” about their rights and obligations.

Among the key changes is amending the definition of an ‘employee’ to allow for remote and part-time work. The new rules apply to companies that are regulated by the ADGM. A remote employee may reside either inside or outside the UAE, but his/her normal place of work is not the employer’s premises at the ADGM.

The regulations will come into effect on April 1, “granting employers sufficient time to align their internal policies, employment contracts and other employment-related matters with the requirements”.

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According to the new law — a copy of which Khaleej Times has studied — the job contract must specify that the employee is a remote one. The employer is required to provide the staff with and maintain the technical equipment required to carry out work remotely.

Companies are responsible for obtaining, maintaining and paying the cost of work permits, residency visa and ID cards for all employees, including remote ones.

For part-time employees, their job contract stipulates under eight working hours per day, less than five working days per week or terms “which otherwise do not constitute full-time working under the employer’s normal practices”.

According to the RA, the new employment regulations reflect “global changes in workplace practices”.

Hamad Sayah Al Mazrouei, CEO of the ADGM Registration Authority, said: “These new regulations come as we continue to expand, grow, and promote innovation in work systems. They will provide the necessary information to the business community while ensuring the protection and stability required for all parties.”

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