Mohammed bin Rashid enacts amendments to DIFC Employment Law, new Employment Regulations to introduce end of service savings plan
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as the Ruler of Dubai, has enacted the Employment Law Amendment Law No. 04 of 2020, Dubai International Financial Centre, DIFC, announced today.
The Amendment Law introduces the new 'Qualifying Scheme' workplace savings scheme in the DIFC, replacing the current end-of-service gratuity payment regime that has been in place since the inception of the DIFC in 2004.
The new regime commences on 1st February 2020, from which employers will make mandatory monthly contributions to a professionally managed and regulated savings plan. The plan replaces the existing accruing of end-of-service gratuity benefits in favour of employees, which is currently in line with the rest of the UAE.
The Board of Directors of the DIFC Authority has also issued new Employment Regulations that set out the requirements for Qualifying Schemes. Employers will have until 31st March 2020 to enrol into a Qualifying Scheme. These include the DIFC Employee Workplace Savings, DEWS, Plan, established by the DIFC as a best-in-class default Qualifying Scheme after an exhaustive competitive bidding process. Alternatively, employers may seek a Certificate of Compliance from the DIFC Authority for an alternative Qualifying Scheme under the Regulations.