ADGM Firms to Embrace Remote Work with New Employment Law Effective April 1
Abu Dhabi Global Market (ADGM) firms will soon be able to hire remote employees under new employment regulations issued by the ADGM Registration Authority (RA). The changes, aimed at enhancing flexibility and aligning workplace practices with global trends, will come into effect on April 1, 2025.
Key Highlights of the New Regulations
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Expanded Definition of ‘Employee’:
The definition of an employee now includes remote and part-time workers, providing greater flexibility for companies regulated by ADGM. Remote employees may reside within or outside the UAE, with their primary workplace located away from ADGM premises. -
Employer Obligations for Remote Workers:
- Employers must provide and maintain the technical equipment necessary for remote employees to perform their duties effectively.
- Companies are required to handle costs related to work permits, residency visas, and ID cards for all employees, including remote ones.
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Part-Time Work Defined:
Part-time employees are defined as working fewer than eight hours per day, less than five days a week, or under terms that deviate from standard full-time practices. -
Probationary Period and Employee Rights:
- Probation is capped at six months, with employees entitled to leave and sick days but not sick pay during this period.
- Contracts may be terminated during probation with a week’s written notice.
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Anti-Discrimination and Victimisation Protections:
- Employers must ensure a workplace free from discrimination based on sex, marital status, pregnancy, race, nationality, religion, age, or disability.
- Employees are also protected from victimisation for filing complaints related to discrimination.
Industry Impacts
Hamad Sayah Al Mazrouei, CEO of the ADGM Registration Authority, emphasized that the new regulations reflect the changing global workplace dynamics. “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,” he said.
The updated laws also clarify ambiguities in employee entitlements, ensuring transparency in employment contracts and fostering trust between employers and employees.
Preparing for the Transition
With the regulations set to take effect on April 1, companies are encouraged to align their internal policies and employment contracts to comply with the updated requirements. This marks a significant step in modernizing workplace practices and enabling ADGM firms to attract a broader pool of talent, regardless of geographic location.
