Expanded Definition of 'Employee'

One significant proposed change is the revision of the 'Employee' definition to be less restrictive, allowing for the inclusion of remote and hybrid workers. This change acknowledges the growing trend towards flexible working arrangements and aims to eliminate confusion about whether remote workers fall under ADGM regulations. By broadening the definition, employers can hire full-time remote employees more efficiently, providing a more adaptable workforce structure.

Clarifications During Probationary Period

The proposed amendments also address entitlements during probation, which previously needed more clarity. Under the new regulations, employees on probation will be entitled to:

• At least one day of paid sick leave per month.
• Paid leave, subject to employer approval.
• A repatriation flight, unless resigning to join another UAE employer or terminated for cause.

Part-Time and Remote Work Provisions

The amendments introduce definitions and entitlements for part-time employees, specifying that part-time employment will be calculated based on the proportion of days worked compared to full-time employees. This change ensures that part-time workers receive proportional benefits and protections, fostering a more inclusive work environment.

Additionally, the regulations will explicitly permit remote and hybrid working arrangements. Employment contracts must specify whether the employee is based in the UAE or abroad, and different obligations will apply depending on the employee's location.

This flexibility can help employers attract and retain talent by offering more adaptable working conditions.

Removal of Overtime Calculations

The proposed amendments suggest removing statutory overtime pay entitlements. Instead, maximum weekly working hours will be set at 48 hours per seven-day period, which can be waived with written employee consent.

This change aims to simplify compliance and reduce administrative burdens on employers while maintaining employee protections.

Implications for Employers

These proposed amendments reflect ADGM's commitment to modernising its employment regulations in line with global standards and changing work environments.

Employers should consider the following actions:

1. Review Employment Contracts: Ensure contracts reflect the new definitions and entitlements for part-time, remote, and probationary employees.
2. Update Policies: Align internal policies with the proposed regulations, particularly regarding remote work and overtime.
3. Provide Feedback: Engage with the consultation process to voice any concerns or suggestions before the 26 August 2024 deadline.

Employers are encouraged to review these proposals in detail, participate in the consultation process, and prepare for the potential enactment of these amendments.