Key Legislative Changes in the New ADGM Employment Regulations 2024

The reduction of working hours during Ramadan is now explicitly set at 25% for Muslim employees.

1.     Definition of Victimisation: An employer victimises an employee if they subject the employee to a detriment, including dismissal, because the employee has engaged in a protected act.

2.     Protected Acts: Protected acts include bringing proceedings under the non-discrimination and victimisation part of the regulations, giving evidence in such proceedings, and making a formal allegation to their employer of contraventions of non-discrimination/victimisation.

3.     Exclusion of Bad Faith: Giving false evidence or making false allegations is not protected if done in bad faith.

4.     Court Remedies: Employees who are victimised can apply to the Court for a declaration and compensation of up to three years total salary. The Court may order the employer to take steps to mitigate the adverse effects of the victimisation.

Key provisions include:

1. Non-Breach of Confidentiality: Employees are not in breach of confidentiality obligations for making a protected disclosure

2. No Civil or Contractual Liability: Employers cannot subject employees to civil or contractual liability for making a protected disclosure

3. Prohibition of Retaliation: Employers and related parties must not retaliate or threaten to retaliate against employees for making or intending to make a protected disclosure. Retaliation includes dismissal, disciplinary actions, forced retirement, refusal of employment benefits, and any other actions likely to cause detriment

4. Court Remedies: Employees subjected to retaliation can apply to the Court for a declaration and compensation. The Court may order the employer to compensate the employee for any injury to feelings and losses suffered, and to take steps to mitigate the adverse effects of the retaliation.

The New Law sets out provisions in respect of an employer being vicariously liable for the acts of its employees and the burden of proof. The key provisions are:

1.     General Liability: Employers may be held liable for any act, attempted act, or omission by an employee that breaches the New Law, provided it occurs in the course of their employment.

2.     Conditions for Liability:

·       Connection to Employment: The act, attempted act, or omission must be sufficiently connected to the employee’s employment such that it would be fair and just to hold the employer vicariously liable

·       Preventive Measures: The employer must be unable to show that they took all reasonable steps to prevent the employee from carrying out the act, attempted act, or omission

3.     Specific Cases of Discrimination, Harassment, or Victimisation:

·       Employers are specifically liable for acts of discrimination, harassment, or victimisation by their employees if they cannot demonstrate that they took all reasonable steps to prevent such conduct

These provisions emphasise the importance of employers implementing robust policies and training programs to prevent misconduct and ensure compliance with the New Law. Employers should take proactive measures to mitigate risks and avoid potential liability for the actions of their employees.

The end of service gratuity calculation remains unchanged however the regulations provide that the basic salary should be no less than 50% of total salary.

Under the Old Law gratuity was not payable in the event of termination for cause, it is now payable in all cases where the employee has more than one year’s service.

There remains the option for employees to participate in a pension or savings scheme as an alternative to gratuity.

The New Law also provides that the employer must not make the cancellation of the employee’s visa (if sponsored by the employer) conditional on the employee waiving any rights. It is our view that a properly executed settlement agreement can still contain the standard visa cancellation clause (as that provision (Article 1(2)) would appear to override this one).