MoU between JAFZA and the DIFC: Implications for Employers

Analysis

It has recently been announced that a Memorandum of Understanding (MoU) has been entered into between Jebel Ali Free Zone Authority (JAFZA) and the Dispute Resolution Authority (DRA) in the Dubai International Financial Centre (DIFC). The MoU includes reference to employment law dispute resolution provisions and potentially paves the way for employment disputes involving employers in the Jebel Ali Free Zone (JAFZ) to be considered by the Small Claims Tribunal of the DIFC Courts (SCT). This article explores how this may affect companies in their management of employee relations.

Employment law dispute resolution provisions

Within the wider aim of cooperation between the two authorities, the MoU provides for JAFZA and the DRA to look "towards the creation and adoption of bespoke employment law dispute resolution provisions for JAFZA and its member companies. This may include the provision of office space to the SCT from which the SCT can provide services to businesses operating within and individuals working within the Jebel Ali Free Zone".

It remains to be seen how this will be implemented in practice and a number of key issues will need to be considered in doing so.