Our latest Navigating Employment Law in the Middle East webinar turned the spotlight back on the Abu Dhabi Global Market (ADGM) and the essential legal obligations employers need to understand when operating there.
The session covered a wide range of topics—from pay and working hours to leave entitlements, employer duties, and end-of-service rights. Below, we’ve pulled together the key takeaways and practical points employers should keep top of mind.
Getting Pay Right: Salary and Penalties
Pay compliance is understandably a key area under the ADGM Employment Regulations.
Employers must pay employees their agreed wages, with pay periods capped at one month and payment due within 14 calendar days of such period’s end. Employers cannot make unauthorised deductions from an employee’s salary except in limited circumstances set out in the Regulations, namely:
- The deduction is required or authorised under legislation or the employment contract
- The employee has agreed to the reduction or payment in writing
- The deduction or payment is a repayment of an overpayment, loan, or advance
- The deduction or payment has been ordered by the court
Employers must also provide a written pay statement (which can be electronic) on or around each pay date, setting out the amounts due to the employee and the deductions to be made, if any, and the reasons for those deductions.
Late Payment Can Be Costly
On termination, all wages and outstanding amounts due to an employee must be paid within 21...
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