ADGM implements new employment regulations that brings major changes to workplace practices
09 Apr 2025
News
The new employment laws that Abu Dhabi Global Market (ADGM) has implemented significantly alter workplace procedures. These include more stringent compliance requirements for firms, improved employee safeguards, and flexible work schedules.
The revised regulations, which went into effect on April 1, are intended to bring ADGM's employment legislation up to speed with international norms and provide more precise guidance on the obligations and rights of both employers and employees.
- One of the biggest changes is the official acceptance of flexible work schedules, which includes the creation of the notions of "part-time employee" and "remote working employee.
- Employees must now give written consent if they are requested to work more than the 48-hour workweek cap, which still applies.
- Maternity benefits are improved under the new rules. For nine months after the birth of their kid, new moms will also benefit from an extra one-hour break.
- The two-year cap on the gratuity amount has been lifted, giving long-serving employees an extra financial incentive, even if the end-of-service gratuity calculation process is still the same.
There could be monetary fines for employers who disregard the new rules. Among them include, but are not restricted to:
- not swiftly canceling work permits or visas.
- failing to respond to a request for termination with a written explanation within 21 days.
- failing to provide an employment reference to a worker within 21 days of their request.
- failing to reimburse workers for all money owed within 21 days of termination. A penalty equal to the employee's daily income for each calendar day that payment is delayed, up to a maximum of six months' compensation, will be imposed for any further delays.
- not keeping certain records of employment.