Welcome to the March 2025 edition of Lexis Middle East HR Alert, your indispensable guide to understanding the dynamic legal and business environment affecting HR in the Middle East. As the region continues to evolve and harmonise with international standards, it is crucial for HR professionals, legal advisors, and business leaders to remain informed about the latest developments and trends impacting the workforce. This issue highlights significant amendments to Saudi and UAE labour laws, emphasising enhanced worker protection and strict compliance measures.

In Saudi Arabia, updates to Cabinet Decision No. 219/1426 clarify the enforcement roles of the Ministry of Human Resources and Social Development and the Ministry of Interior, with increased fines for unauthorised employment ranging from 200,000 to 500,000 Riyals. The UAE’s Federal Decree-Law No. 9/2024 introduces amendments aimed at improving employer compliance, notably imposing fines of up to one million AED for employing workers fictitiously, with potential multiplication based on the number of workers involved. Additionally, Oman has implemented a new scheme requiring monthly employer contributions to the Social Insurance Organisation, ensuring expatriate employees receive their end-of-service gratuity dues more efficiently. Our comprehensive analysis delves into the implications of these legislative changes for HR practices across the region, exploring how these updates will affect compliance strategies, employee relations, and overall workforce management.

Stay ahead of the curve with Lexis Middle East HR Alert, as we provide you with the insights needed to navigate the complexities of HR in the Middle East.

Happy reading!

This edition features a diverse range of content, including:

Feature: A More Flexible Approach

Ben Brown and Sarit Thomas of Clyde & Co explore the greater adaptability afforded to employees and employers following the revisions to the ADGM’s Employment Regulations, set to be implemented on April 1, 2025.

---

Trend Setter: Recruitment

Mary Rintu from NYK Law analyses how the shift towards prioritising practical skills over experience in hiring may offer both opportunities and challenges for employers in the UAE.

---

News Round-up: Covering Recent Key Developments – Region-Wide

Keep up-to-date with the most recent regional developments, including a consultation on DIFC Employment Law.

---

Immigration Focus

Deepen your knowledge of the changing immigration and visa rules in the Gulf Cooperation Council (GCC) nations, emphasising the grace period for visa violators in Qatar.

---

Law Changes: New and Proposed MENA Laws

Balall Maqbool, Hamood Al Rawahi, and Mehdi Al Lawati of DLA Piper Middle East discuss Oman Ministerial Decision No. 13/2025 and the newly introduced regulations on part-time work in Oman.

---

Case Focus: QFC Employment Standards Office v Meinhardt BIM Studios LLC [2024] QIC (F) 24

Umar Azmeh, Registrar at QICDRC, highlights the importance of this case, comparing it to Donoghue v Stevenson [1932] AC 562, a landmark in negligence law. The QFC Employment Standards Office (ESO) is crucial in enforcing the QFC Employment Regulations 2020 through its investigations and guidance.

---

Enrich your understanding of the HR landscape and stay up-to-date with the latest trends, cases, and policies through the newest issue of Lexis Middle East – HR Alert.

For all the latest industry updates and developments, opt for a free HR Alert subscription!

Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.

Have you read the Lexis® Middle East HR Alert – previous editions? Click the links below to access and read these editions.

---

HR Profile: People and Technology

Uchenna Okpara Izuagba, Chief Human Resources Officer at Gastronaut Hospitality, asserts that prioritising employee needs and leveraging technology are essential for success in the UAE hospitality industry.

---

In-House Profile: Practitioner Perspective

Sarah Malik, Pavithra Rajendran, and Sara Nassif from SOL International outline the main aspects of UAE health and safety laws and the National Standard for the Occupational Safety and Health Management System (OSHMS).

---

Policy Pointers: Sponsorship transfers

Sarah Khasawneh, Associate at Pinsent Masons, highlighted that recent legal reforms in Qatar have changed the sponsorship transfer process by eliminating the need for NOC. Employees can now switch jobs without their current employer’s approval, improving worker mobility.

---

Moves and Changes

Stay updated on the newest business trends, significant appointments, and promotions in the region to stay connected with the market’s key influencers.

---

The Lexis Middle East Gulf Tax Spring Edition offers an in-depth analysis of the swiftly evolving tax landscape within the Gulf Cooperation Council (GCC) region. This edition underscores the trend where the introduction of new tax laws is often rapidly succeeded by a cascade of related legislative changes. Among the key topics discussed is the Real Estate Transaction Tax (RETT) in Saudi Arabia, which was initially introduced in 2020 and has undergone several amendments. The magazine delves into the recent formalisation of law on this subject and the ensuing consultation on new Implementing Regulations, with insights from experts at Riad & Riad.

The edition concludes with an examination of the increasing adoption of tax automation software in the UAE, driven by rising requirements and support. Overall, the magazine highlights the imperative for taxpayers in the GCC to remain vigilant and adaptable to the rapid and significant changes in tax laws.

---

FEATURE: YOUR RIGHTS ON RETT

Dr. Fatma Salah, together with Mohamed Riad and Amera Gamal from Riad & Riad, discusses the introduction of the Real Estate Transaction Tax (RETT) in Saudi Arabia in 2020. The upcoming legislation and its Executive Regulations are anticipated to provide more detailed guidance on the tax’s application.

---

FEATURE: DOWN TO BRASS TACKS ON DMTT

Asrujit Mandal from BDO explores the dynamic shifts in regional legislation and guidance surrounding the Domestic Minimum Top Up Tax. With Bahrain at the forefront, its pioneering approach could potentially shape and inspire strategies in other GCC countries, all in alignment with Pillar Two initiatives.

---

TAX NEWS ROUND-UP

This round-up outlines the most recent major changes in tax agreements and regulatory updates across the region, providing readers with a comprehensive understanding of the current developments.

---

PRACTICAL FOCUS: VAT AND CRYPTO MINING

Shailesh Kumar (Associate Partner), Mradul Gupta (Associate Director), and Megha Lohia (Assistant Manager) from PKF UAE highlight the rising prominence and global acceptance of cryptocurrency and emphasise the increasing importance of understanding the tax implications associated with its use.

---

TAX PROFESSIONAL PROFILE

What’s Next with VAT? While Corporate Tax and Transfer Pricing modifications are making news, Harsh Bhatia, Director of VAT at Grant Thornton UAE, points out that there are also upcoming changes in the UAE’s VAT system.

---

ANY QUESTIONS?

Is tax automation required in the UAE? Dhana Pillai from DP Taxation Consultancy examines the requirements, assistance, and strategies that are boosting the adoption of tax automation software in the UAE.

---

Want to receive future editions? Subscribe here!

Want to learn more about Lexis® Middle East Visit, https://www.lexis.ae/lexis-middle-east-law/.

Have you read the Lexis® Middle East Gulf Tax – Past editions? Click the links below to access them.

Lexis Middle East Gulf Tax | Winter 2024

Lexis Middle East Gulf Tax | Autumn 2024

Lexis Middle East Gulf Tax | Summer 2024

Lexis Middle East Gulf Tax | Winter 2023