The Abu Dhabi Global Market (ADGM) has introduced key amendments to its Employment Regulations, aimed at enhancing clarity and fairness in workplace practices. These changes address crucial aspects in today’s market, such as remote work and compliance requirements, aligning ADGM’s framework with international standards. The updated regulations reflect ADGM’s commitment to fostering a competitive and transparent business environment for employers and employees alike.

Introduction

The ADGM Registration Authority has introduced the Employment Regulations 2024 (“New Employment Regulations”), which will replace the existing regulations and take effect on April 1. These updates incorporate additional amendments beyond those proposed in the July 2024 consultation paper, reflecting global trends in workplace practices and aiming to provide greater clarity on the rights and obligations of employers and employees.

The changes include increased fines and liabilities, necessitating that employers review and update their internal policies, employment contracts, and HR practices to ensure compliance.

Key Updates

1. Expanded Definitions

• Employee: The definition has been broadened to include remote employees, facilitating flexible and remote work arrangements.

2. Employment Contracts

• Written employment contracts must be issued within one month of employment commencement.
• Nonadministrative amendments require mutual written agreement.

3. Probationary Period

• Limited to a maximum of six...

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