News

Weekly Spotlight: Amendments to the DIFC Employment Law Enacted

The DIFC has enacted amendments to the 2019 Employment Law (DIFC Law No. 2/2019) and introduced new Employment Regulations which introduce a new end of service savings plan. The amendments to the Labour Law introduce the new Qualifying Scheme workplace savings scheme in the Centre and replace the current end-of-service gratuity payment regime which has been in place since the Centre’s founding in 2004. They come into force on 1 February 2020 and employers will have to make mandatory monthly contributions to a professionally managed and regulated savings plan after that.

The new Regulations set out the requirements for Qualifying Schemes. Employers have until 31 March 2020 to enrol into a Qualifying Scheme. These include the DIFC Employee Workplace Savings Plan. Alternatively, employers may seek a Certificate of Compliance from the DIFC Authority for an alternative Qualifying Scheme under the Regulations.

There will also be a new oversight body which will have the right to appoint and remove the scheme operator, review its governance and fees and charges imposed on the scheme. In addition, Qualifying Schemes must require employer and employee representation and independent oversight with the aim of ensuring the proper protection of the employee’s interests.

Employees will also be allowed to make voluntary workplace savings contributions into a Qualifying Scheme on top of the mandatory monthly contributions to be made by employers under the Employment Law and ensure any accrued end-of-service benefits under the current regime remain in place, also providing employers with the option to pay these accrued benefits into a Qualifying Scheme. In addition, there are exemptions for certain types of employees, like those on secondment in the Centre, short-term workers, equity partners and employees working for Government departments and bodies which have a presence in the Centre. The mandatory contributions to be made by employers are set at 5.83% of monthly basic wage, for employees who have less than five years’ service and 8.33% of monthly basic wage for employees who have served for longer.

Weekly Spotlight: The DIFC Announces the DEWS Nomination Deadline

The DIFC has issued a reminder that the deadline for appointing an employee and/or employer to the DEWS Supervisory Board is 15 January 2020.

Nominations should be accompanied with a valid DIFC employee card and the entity should be registered in the DIFC. The nominees should also have the appropriate qualified and experience.

The DEWS Supervisory Board will be made up of DIFC Authority representatives, employer and employee representatives and independent members. The Board will oversee the continuing governance and commercial aspects of the scheme which are not subject to regulatory supervision.

Weekly Spotlight: Dubai’s Multi Commodities Centre Announces New Rules and Regulations for 2020

Dubai’s Multi Commodities Centre has announced various new rules and regulations. They will come into force on 2 January 2020. The aim is to make it easier to do business and set-up in the Centre. The new regulations update the Centre’s existing company law framework to provide greater flexibility and make it easier to operate for businesses registered with the Centre. Key amendments include increased flexibility around a company’s Articles of Association; the introduction of different share types, allowing businesses to tailor their shareholding structures; a new dormant status and an increased ability to transfer company incorporation in the Centre.

Elsewhere, the Chairman of Ajman Free Zone has announced it has launched a new Business Hub. It will be available to freelancers, entrepreneurs and businesses who operate in the Zone. It has been specifically designed to provide investors in the Zone with a comprehensive range of services.