DIFC Employment Law

Repeals and replaces the Employment Law 2005 for employers and employees based in or ordinarily working in the DIFC: contracts, working time, leave, discrimination, termination, penalties for late payment and the Article 66 workplace savings regime that replaced end-of-service gratuity. Enacted 30 May 2019, in force 90 days later; Consolidated Version No. 5, July 2025.

Summary

The Employment Law, DIFC Law No. 2 of 2019, is the employment code for the DIFC and replaces the federal Labour Law for employers and employees in the Centre. Made by the Ruler of Dubai, it repealed the Employment Law 2005 (Article 1). It applies to any person with a place of business in the DIFC who employs one or more individuals, and to any individual employed under an employment contract who is based in or ordinarily works in or from the DIFC or has agreed to be subject to the Law, with exceptions for secondees (Article 4). The copy read is Consolidated Version No. 5 of July 2025, amended most recently by DIFC Laws Amendment Law No. 1 of 2025; the index records enactment on 30 May 2019 and commencement on 28 August 2019. Its requirements are minimums and waivers are void unless permitted (Article 11).

An employer must give a written English-language contract within seven days of the start date (Article 14), with itemised pay statements and payroll records (Articles 15 and 16). Working time may not average more than 48 hours a week without written consent, with 11 hours' daily rest and 24 hours' weekly rest (Articles 22 to 26). Employees get 20 working days' paid vacation after 90 days' service (Article 27); 60 working days' sick leave a year, paid at 100% for the first 10 days and 50% for the next 20 (Articles 34 and 35); and 65 working days' maternity leave with pay after 12 months' service (Articles 37 and 38). Discrimination on sex, marital status, race, nationality, age, pregnancy, religion or disability is prohibited (Article 59).

Employers must maintain health insurance (Article 56) and, at their own cost, the visas and permits their staff need, may not hold passports, and must cancel a sponsored visa within 30 days of termination (Article 57). Notice without cause is at least 7 days under three months' service, 30 days up to five years and 90 days beyond (Article 62); either side may terminate immediately for cause (Article 63).

Article 66 replaced end-of-service gratuity with the DIFC workplace savings regime: gratuity accrued before the qualifying scheme commencement date, 1 February 2020 for existing staff, remains payable at 21 days' basic wage a year for five years and 30 days thereafter, capped at two years' wage, while from that date the employer pays monthly core benefits of 5.83% of basic wage for the first five years and 8.33% thereafter into a qualifying scheme such as DEWS. Termination sums must be paid within 14 days, with a penalty of a day's wage for each day of arrears (Article 19). Claims must be brought during employment or within six months of termination (Article 10). Schedule 2 fixes fines of up to USD 10,000 for employing a child and USD 2,000 per breach of the other listed duties.

Who it applies to

Any person with a place of business in the DIFC, including DIFC bodies, that employs one or more individuals, and every individual employed under an employment contract who is based in or ordinarily works in or from the DIFC or has agreed in the contract to be subject to the Law, with carve-outs for secondees and other cases in Article 4(2).

Contents

English official text in 70 articles. Open the full text or jump to a provision:

1. Article 1 — Title and repeal
2. Article 2 — Legislative Authority
3. Article 3 — Purpose of this Law
4. Article 4 — Application of the Law
5. Article 5 — Date of enactment
6. Article 6 — Commencement
7. Article 7 — Schedules
8. Article 8 — Administration of the Law
9. Article 9 — The power of the DIFCA to make Regulations and impose fines and penalties
10. Article 10 — Limitation Period
11. Article 11 — No waiver
12. Article 12 — No false representations
13. Article 13 — Hiring children
14. Article 14 — Right to a written contract
15. Article 15 — Itemised pay statements
16. Article 16 — Payroll records
17. Article 17 — Part-Time Employees and Short-Term Employees
18. Article 18 — Paydays
19. Article 19 — Payments following termination
20. Article 20 — Deductions
21. Article 21 — Recruitment costs
22. Article 22 — Maximum weekly working time
23. Article 23 — Ramadan
24. Article 24 — Daily rest
25. Article 25 — Weekly rest period
26. Article 26 — Breaks
27. Article 27 — Vacation Leave
28. Article 28 — Compensation in lieu of Vacation Leave
29. Article 29 — Dates of Vacation Leave
30. Article 30 — Vacation Leave during first year of employment
31. Article 31 — Entitlements under other provisions
32. Article 32 — Public Holidays and pay
33. Article 33 — Special Leave
34. Article 34 — Sick Leave
35. Article 35 — Sick Pay
36. Article 36 — Excessive Sick Leave
37. Article 37 — Maternity Leave
38. Article 38 — Maternity Pay
39. Article 39 — Paternity Leave and pay
40. Article 40 — Right to return to work
41. Article 41 — Time off for ante-natal care and adoption proceedings
42. Article 42 — Remuneration for time off under Article 41
43. Article 43 — General duties of Employers
44. Article 44 — Health and safety
45. Article 45 — Ventilation
46. Article 46 — Temperature in indoor workplaces
47. Article 47 — Lighting
48. Article 48 — Cleanliness
49. Article 49 — Room dimensions and space
50. Article 50 — Workstations and seating
51. Article 51 — Sanitary conveniences
52. Article 52 — Drinking water
53. Article 53 — No penalties for preventing health and safety risks
54. Article 54 — Liability of Employers for an Employee’s conduct
55. Article 55 — Employment accidents and illnesses
56. Article 56 — Health insurance
57. Article 57 — Visas and permits
58. Article 58 — General duties of Employees
59. Article 59 — Discrimination
60. Article 60 — Victimisation
61. Article 61 — Proceedings under Part 9
62. Article 62 — Minimum notice periods
63. Article 63 — Termination for cause
64. Article 64 — Right to written statement of reasons
65. Article 65 — Pension for UAE and GCC nationals
66. Article 66 — Gratuity Payment and Qualifying Scheme Benefits
67. Article 67 — General contraventions
68. Article 68 — Administration of fines and penalties
69. Article 69 — Inspections and access to records
70. Article 70 — Liability of the DIFCA

Key provisions

Obligations and deadlines

• Issue a written English contract within seven days of the start date (Article 14).
• Pay all termination sums within 14 days of the termination date (Article 19).
• Keep average working time within 48 hours a week unless the employee consents in writing (Article 22).
• Grant 20 working days' paid vacation after 90 days' service (Article 27).
• Maintain health insurance and all visas and permits at the employer's cost (Articles 56–57).
• Cancel a sponsored employee's residence visa within 30 days of termination (Article 57(3)).
• Pay monthly core benefits of 5.83% or 8.33% of basic wage to a qualifying scheme (Article 66(7)).
• Give at least 7, 30 or 90 days' written notice depending on length of service (Article 62).

Penalties

Schedule 2 sets maximum fines payable to the DIFCA for each instance of breach: USD 10,000 for employing a child under 16 (Article 13) and USD 2,000 for each failure to meet employer duties, health and safety standards, health insurance (Article 56), visa and sponsorship requirements (Article 57), qualifying-scheme obligations for each employee (Article 66) and inspector access (Article 69). Separately, an employer in arrears on termination payments owes the employee a penalty of one day's wage for each day of delay where the shortfall exceeds a week's wage (Article 19), and the Court may award compensation for discrimination and victimisation under Part 9.

History and citations

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