Amendments to DIFC Employment Law

At a glance

• Dubai’s International Financial Centre (DIFC) has proposed various legislative amendments, including amendments to its Employment Law.
• DIFC has launched a consultation on these proposed amendments which ends on 29 September 2023.

The proposed changes are aimed at ensuring the DIFC legislation remains aligned with international best practices and Organisation for Economic Cooperation and Development (OECD) requirements.

A summary of the proposed amendments

The first change would place an obligation on DIFC employers, of eligible GCC nationals, to make top up payments into a qualifying scheme (ie DEWS). This would be in addition to the GPSSA contributions. It will essentially require DIFC employers to pay the positive difference into a qualifying scheme where there is a shortfall between what would have been payable into a scheme had the individual not been a GCC national, and what is paid under the GPSSA.

Amendments have also been proposed to deal with situations where a qualifying scheme is prohibited from accepting contributions into a scheme from an employer, or on behalf of an employee, because of being subject to sanctions. In these circumstances, the proposed amendments will require an employer to accrue the core benefits contribution on behalf of such an employee in the form of a gratuity payment. It is noteworthy that this proposed amendment states that an employer will not be liable for any profit or loss that may have accrued into a qualifying scheme in respect of core benefits that could not be contributed into a qualifying scheme in these circumstances. The DIFC are not however seeking public comments on this amendment.