The much anticipated new DIFC Employment Law, DIFC Law No. 2 of 2019 (the "New Law") has been enacted. The New Law repeals and replaces DIFC Law No. 4 of 2005, as amended by Law No. 3 of 2012 (the "Previous Law").
The New Law is customised to bridge the gap between the DIFC Employment Law and the UAE Labour Law. That said, the New Law also attempts to achieve a better balance between the needs of employers and employees in the DIFC, while simultaneously providing minimum employment standards and fairer treatment of all employers and employees alike. A key driver for this change was the urgency to address the imbalance of the power between employees and employers under Article 18 of the Previous Law.
Ultimately, the purpose of the New Law is to bolster the DIFC's employment practices in order to promote and contribute to the prosperity of the DIFC. The New Law was enacted on 30 May 2019 and as per the enactment period of 90 days the law will come into force as of 28 August 2019. Given the interest in this piece of legislation, the following analysis will not measure and compare the significant changes to the New Law.
The Employment practice ran a significant campaign covering the enactment of the new DIFC Employment Law. Please find below links to the Top Tips, videos and podcast series.