Morgan Lewis recently hosted the latest session in its Navigating Employment Law in the Middle East webinar series, focusing on the legal framework governing termination of employment in the Abu Dhabi Global Market (ADGM). The session formed the first of four webinars dedicated to termination issues across key Middle Eastern jurisdictions.
The webinar explored the ADGM Employment Regulations 2024 (Regulations), as amended, which came into force in April 2025 and highlighted the practical and legal factors employers should consider when managing employee exits in the ADGM.
Termination on Notice
The webinar began by examining the most common method of ending employment in the ADGM: termination on notice. Under Article 56 of the Regulations, either the employer or employee may terminate employment at any time by giving written notice.
The Regulations prescribe minimum notice periods of:
While parties cannot contract for shorter notice periods, they may agree to longer periods, and notice periods of three to six months are commonly used for senior or executive employees.
The presenters also discussed the different ways in which notice periods may be managed in practice. Employees may continue working as normal, be placed on garden leave, or receive payment in lieu of notice (PILON). The Regulations...
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