The Prestige

Analysis

DIFC Law No 3/2012 ("DIFC Employment Amendment Law") came into force on 23 December 2012. Jamie Liddington explores the impact of the penalty payment introduced under Article 18(2) and the likely interpretation and application of Article 18(2) when the DIFC Court of First Instance has its first opportunity to consider the “new” provision (in the first half of 2015?).

In brief:

• This article considers the effect of Article 18 of DIFC Employment Amendment Law for which there is no equivalent in the wider UAE (or other free zones);

• Article 18 is very clear in its construction and leaves little room for interpretation;

• At the date of this article, Article 18 has only been considered and applied by the DIFC Small Claims Tribunal;

• Clarification is expected early next year when the DIFC Court of First Instance has its first opportunity to consider and rule on Article 18;

• Article 18 may have unintended consequences which may result in further amendments to DIFC Employment Law.