Abu Dhabi Global Market Leads the Way in UAE with its new Employment Regulations

Analysis

On 14 June 2015, the Abu Dhabi Global Market (ADGM) published the final version of its first raft of regulations, including the Employment Regulations (the Regulations). In this article, we examine the Regulations and contrast them to the employment provisions in operation in the Dubai International Financial Centre (DIFC) and the UAE Labour Law (the Labour Law).

Although at first sight, the Regulations introduced by the ADGM appear to be similar to the DIFC Employment Law, the Board has taken the opportunity to make interesting and innovative alterations to the employment statutory regime. In 2004, the UAE amended its constitution to enable each of its Emirates to establish financial free zones in which English common law would be the basis of the legal system and in which the UAE civil and commercial laws would not apply. Dubai was the first to use Federal Law No 8 of 2004 to establish the DIFC in 2005 and Abu Dhabi established the ADGM free zone in 2013.