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Abu Dhabi Global Market (ADGM) has taken a groundbreaking step by implementing new labour regulations that allow remote and part-time work arrangements, reflecting a global shift towards flexible employment models.
Set to take effect on April 1, 2025, these changes redefine employment practices for companies operating in ADGM. Employers must adapt to these regulations to remain compliant and competitive while optimizing their workforce strategies.
Guided by the CEO Ahmed Al Sayegh and Regulatory Authority Chairman Khalid Al Hussaini, ADGM’s new labour laws are poised to reshape the employment landscape in Abu Dhabi.
This progressive move not only aligns with international best practices but also strengthens ADGM’s position as a leading financial hub that embraces flexibility and innovation.
By legally recognizing remote and part-time employment, ADGM is sending a message to businesses they are ready to adapt, and change based on the dynamic global market.
Understanding the Previous Framework
Before the enactment of these new regulations, ADGM’s employment laws were primarily designed for traditional full-time roles within physical premises. Companies faced significant constraints, as remote and part-time work lacked formal legal recognition.
This limited employers’ ability to offer flexible working conditions, often stifling innovation and hindering talent acquisition efforts in an increasingly mobile and digitally connected world.
Key Changes Introduced by the New Labour Laws
The new labour laws introduce significant updates that redefine employment practices, enhance worker protections, and clarify employer obligations.
1. Remote Working
The new regulations formally incorporate remote work into the legal framework, providing much-needed clarity and flexibility for employers and employees. Key aspects include:
- Expanded Definition of Employment Location: Employees can now work from locations outside ADGM’s physical jurisdiction, including both domestic and international locations.
- Employer Responsibility for Technical Equipment: Employers must supply the necessary tools and technology to enable remote employees to perform their duties effectively.
- Cost Coverage for Permits and Visas: Companies are required to bear the financial burden of securing work permits, residency visas, and ID cards for all remote workers.
- Data Security and Confidentiality: Employers must implement robust cybersecurity measures to protect sensitive information handled by remote employees.
2. Part-Time Employment
For the first time, ADGM’s labour laws provide explicit guidelines for part-time employment, offering employers flexibility to structure non-standard work arrangements.
- Definition of Part-Time Employment: Part-time workers are those who work fewer than eight hours per day or fewer than five days per week.
- Customizable Work Schedules: Employers can negotiate unique working hours and conditions, provided they adhere to minimum labour standards.
- Pro-rata Benefits and Entitlements: Part-time employees are entitled to benefits proportional to their working hours, ensuring fair treatment.
3. Anti-Discrimination and Victimization Measures
The new regulations enhance workplace inclusivity and protect employees from unfair treatment:
- Comprehensive Anti-Discrimination Policies: Employers must ensure that hiring, promotion, and termination decisions are free from bias based on race, gender, age, or other protected characteristics.
- Protection Against Victimization: Employees are safeguarded against retaliatory actions for reporting misconduct or discrimination.
- Mandatory Training: Companies are encouraged to provide diversity and anti-discrimination training to foster a more equitable workplace.
Employer Obligations Under the New Labour Laws
To ensure compliance, employers must adhere to several key responsibilities:
- Provision of Equipment and Tools: Supply necessary hardware and software for remote work.
- Visa and Permit Sponsorship: Cover costs related to visas, work permits, and identity documents.
- Policy Development: Establish or revise policies to reflect the new definitions and standards of employment.
- Data Protection Measures: Implement safeguards for the confidentiality and integrity of data accessed by remote workers.
- Equal Opportunity Practices: Create and enforce anti-discrimination policies that align with the new legal requirements.
How to Prepare for the New Labour Law Compliance
Employers must take proactive steps to align their operations with the new regulations. Key strategies include:
1. Developing a Hybrid and Remote Working Policy
- Define Eligibility Criteria: Outline roles suitable for remote work.
- Set Performance Metrics: Establish clear productivity and accountability standards for remote workers.
- Cybersecurity Protocols: Include guidelines for secure access to company resources.
2. Updating Employment Contracts
- Incorporate Remote Work Clauses: Specify rights and obligations for remote and part-time arrangements.
- Clarify Working Hours: Detail expectations for part-time and flexible schedules.
- Specify Equipment Provision: Indicate the tools and resources the employer will provide.
3. Investing in Technology and Training
- Provide Secure Communication Tools: Equip employees with VPNs, encryption tools, and secure devices.
- Conduct Compliance Training: Educate HR teams and managers on the new legal landscape.
4. Consulting with Legal and HR Experts
- Review Contracts and Policies: Ensure all documentation aligns with updated legal standards.
- Stay updated: Monitor ongoing regulatory updates from ADGM.
- Establish a Centralized Compliance Team: Create a dedicated team to oversee labour law adherence and that where Nathan HR Consultancy and advisory services comes in.
By preparing now, employers can leverage these changes to attract top talent, improve employee satisfaction, and drive sustainable growth.
Aligning with the updated regulations not only ensures legal compliance but also positions businesses at the forefront of a dynamic and progressive global workforce.
