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DIFC Employment Law: The definitive guide for employers
Imagine this: you hire a senior analyst, onboard them on a standard mainland UAE contract, and a year later find yourself at the DIFC Courts because that contract never actually applied to them. It sounds extreme, but it happens. The Dubai International Financial Centre (DIFC) is not just a prestigious address. It is a fully independent jurisdiction with its own employment law, providing a common law framework distinct from UAE Labour Law, its own courts, and its own consequences for getting things wrong.
One missed clause in an employment contract, one month of DEWS contributions skipped, one wrongful termination, any of these can turn into a legal claim, a fine, and a damaged reputation in one of the world's most connected financial communities. And unlike mainland UAE disputes that go through the Ministry of Human Resources and Emiratisation (MoHRE), DIFC employment disputes go straight to the DIFC Courts, a fast, sophisticated, and employee-friendly system grounded in English common law.
This guide is for business owners, employers and HR managers operating inside the DIFC who want to understand exactly what the law requires of them. By the time you finish reading, you'll know how employment law here differs from the rest of the UAE, what you must have in every contract, what you owe your employees in leave and end-of-service benefits, and how to stay clean on payroll and compliance.
What is the DIFC and why does it have its own employment law?
The Dubai International Financial Centre (DIFC) is a financial free zone established under Federal Decree-Law No. 35 of 2004. It was built from the ground up to attract the world's top financial institutions by offering something most jurisdictions couldn't at the time: a legal system grounded in English common law different from the UAE civil law.
That decision shaped everything.The DIFC operates as an autonomous jurisdiction within Dubai, complete with its own regulator (the Dubai Financial Services Authority, or DFSA), its own courts, its own company registry, and critically, its own employment law. As of 2024, the DIFC hosts over 6,920 active companies and a workforce of more than 46,000 professionals.
When you employ someone in the DIFC, UAE Federal Labour Law (Federal Decree-Law No. 33 of 2021) does not apply to that employment relationship. The DIFC's own law does. That is not a technicality. It is the foundation of how you must structure your contracts, your payroll, your leave policies, and how you handle terminations.
One sentence definition: The DIFC is a legally autonomous financial free zone in Dubai that governs employment relationships through its own statute, entirely independent of UAE federal employment law.
Which law applies and to whom?
The governing statute is DIFC Employment Law No. 2 of 2019, which replaced the original Employment Law of 2005 and has been amended several times since, most recently in 2025.
Under Article 4, this law applies to:
Any employer with a place of business in the DIFC who employs one or more individuals
Any employee working under a contract expressly subject to DIFC law
Employees working in the DIFC under secondment arrangements (with some limitations)
The law also makes clear that its minimum requirements cannot be waived. If an employment contract offers less than what the law requires, the law wins, regardless of what the employee signed.
Who is a "Secondee"?
A secondment is where an employee works for a DIFC entity while still being formally employed by a company outside the DIFC (but within the UAE). The DIFC Authority issues a secondment card for this purpose, valid for up to one year. Secondees are entitled to a written contract, accurate payroll records, Ramadan hours, and protection against false representations, though their full leave and termination entitlements are more limited than those of direct employees.
If someone is working for an entity based entirely outside the UAE and placed in the DIFC, they must be formally sponsored by and employed by the DIFC entity. There is no secondment arrangement across international borders.
Short-term employees
The law also defines "short-term employees", those whose total service does not exceed 30 aggregate days per year.
Short-term employees have no entitlement to vacation leave, sick leave, or termination rights. This is a narrow category; misclassifying a regular employee as short-term would be a compliance risk.
Employment contracts in the DIFC: What must be in them
Article 14 is non-negotiable: you must provide every employee with a written employment contract in English within seven days of their start date.
This is not a "best practice." It is a legal obligation. Using a mainland UAE contract template, even a very good one, for a DIFC employee is a compliance failure from day one.
Mandatory contract contents
Your DIFC employment contract must include at minimum:
Employee's full name, job title, duties, and responsibilities
Salary, benefits, and any other forms of remuneration
Working hours and days
Leave entitlements (annual, sick, maternity/paternity)
Notice period for termination
Probation period (if applicable, maximum 6 months)
Internal Policies & Rules
A clear statement that the contract is governed by DIFC law
Reference to the DIFC Employment Law as the applicable statute, the contract must be in English
The 50% basic salary rule
This is frequently overlooked. Under DIFC law, an employee's basic wage must be no less than 50% of their overall annual wage (including allowances).
Why does this matter?
Because DEWS contributions and end-of-service gratuity are calculated on basic salary, not total package. If you artificially suppress basic pay, you're reducing what employees receive in their savings scheme, which the law explicitly prevents.
Example: If your employee earns AED 30,000/month in total (salary + allowances), the basic salary component must be at least AED 15,000/month. Anything less would breach DIFC law.
Working hours, rest, and ramadan rules
Standard Hours
Under Article 22, working hours are capped at an average of 48 hours per week over a seven-day period. This is an average, not a daily maximum, but you'll need written employee consent before you can go above it.
Every employee is also entitled to:
11 consecutive hours of rest in every 24-hour period (Article 24)
An uninterrupted 24-hour rest period in every seven-day period (Article 25)
At least one hour of rest and prayer breaks during any workday where hours exceed six (Article 26)
At least one hour of aggregate nursing breaks during a workday exceeding six hours for female employees returning from maternity leave, for up to six months following childbirth (Article 26)
Protection against being required to work "excessive hours" that may be detrimental to their health or safety, regardless of any written consent to exceed the 48-hour limit (Article 21)
Ramadan
During the holy month of Ramadan, working hours reduce to 36 hours per week for Muslim employees. This is automatic, you do not need employees to request it, and you cannot offset it with overtime.
Overtime
Under the DIFC Employment Law, there is no statutory right to overtime pay, as compensation for additional hours is governed primarily by the employment contract. For most professional and managerial roles, it is standard for contracts to state that the total remuneration covers all hours worked.
Leave entitlements: Annual, sick, maternity, and paternity
This is where DIFC employment law diverges most visibly from mainland UAE practice. The entitlements are broader, and the rules around them are stricter.
Annual leave
Employees who have completed at least 90 days of continuous employment are entitled to 20 paid working days per year of vacation leave.
Key rules:
Leave accrues from the first day of employment
Employees can carry forward a maximum of 5 days of unused leave to the next year
Leave cannot be replaced by payment in lieu except on termination
Sick leave
Employees are entitled to up to 60 paid working days of sick leave per year (Article 34). That's notably more generous than the mainland UAE framework. The breakdown is:
Days of Sick Leave | Pay Rate |
First 10 days | 100% of daily wage |
Next 20 days | 50% of daily wage |
Remaining 30 days | Unpaid |
An employer can terminate an employee who has taken excessive sick leave but only within specific conditions defined in Article 36 (an employee who exceeds 60-day limit in a 12-month period), and this cannot be exercised during pregnancy or maternity leave.
Maternity Leave
Under Article 37, a female employee is entitled to 65 working days of maternity leave, structured as follows:
Period | Pay |
First 33 working days | 100% of daily wage |
Next 32 working days | 50% of daily wage |
The law also provides strong protection against dismissal during pregnancy and maternity leave. Additionally, mothers returning from maternity leave are entitled to nursing breaks of at least one hour per working day for a period of six months after returning.
Maternity leave applies to birth and adoption.
Paternity leave
Fathers are entitled to 5 paid working days of paternity leave (Article 39), which also extends to adoption. This leave must be taken within one month of the child’s birth . Fathers additionally have the right to take paid time off to attend antenatal appointments, a provision introduced in the 2019 law that mainland UAE has only more recently moved toward.
Public holidays
Under Article 32, employees are entitled to their full daily wage for every public holiday. If an employee agrees to work on a public holiday, the employer must provide one of the following, but note the base holiday pay is always owed regardless of which option applies:
A compensatory day off in lieu for each holiday worked
An additional payment equal to the employee's daily wage (making total pay for that day double their normal daily rate)
A prorated payment if the employee only worked part of the public holiday
This differs from the UAE Federal framework, where working on a public holiday entitles the employee to either a lieu day plus a 50% supplement on remuneration, or 150% of basic salary if no lieu day is granted.
End-of-Service benefits: DEWS and the Old gratuity regime
This is one of the biggest operational differences between the DIFC and the rest of the UAE, and one of the most common areas where employers get into trouble.
What is DEWS?
The DIFC Employee Workplace Savings (DEWS) Plan is a mandatory defined contribution scheme launched on 1 February 2020. It replaced the traditional end-of-service gratuity (EOSG) model for all service accumulated after that date.
Instead of saving a lump-sum liability on your balance sheet for each employee, you make monthly contributions into a professionally managed savings fund. The employee's money is held in their name, invested, and paid out when they leave or retire.
Contribution Rates
Years of Continuous Employment | Monthly Contribution (% of Basic Salary) |
First 5 years | 5.83% |
Each year after 5 years | 8.33% |
These rates mirror the old gratuity accrual rates but are paid monthly instead of being held as a liability until the end of employment.
DEWS vs. Qualifying Alternative Schemes
You don't have to use DEWS specifically. You can use any qualifying alternative scheme (QAS) that has been granted a Certificate of Compliance by the DIFC Authority. As of now, the approved schemes include DEWS and GO SAVER, among others. If in doubt, check the DIFC website for the current approved list.
The Old Gratuity (Pre-February 2020)
For any service completed before 1 February 2020, the traditional gratuity regime still applies. The calculation is:
21 days of basic wage per year for the first 5 years
30 days of basic wage per year for each year beyond 5 years
Capped at 2 years' annual wage in total
Even employees terminated for cause (gross misconduct) are entitled to their accrued gratuity. This was a deliberate change in the 2019 law, the rationale being that the gratuity stands in place of pension contributions, and it would be unfair to strip an employee of that regardless of conduct.
DEWS Compliance: Critical Rules for 2026
To prevent employers from artificially lowering their DEWS bill, the Basic Wage must be at least 50% of the total monthly remuneration.
For example: If an employee's total package is AED 20,000, the Basic Wage cannot be set at AED 5,000 just to save on pension costs. It must be at least AED 10,000. If audited, the DIFC Authority can force the employer to back-pay the difference and apply penalties.
Probation Back-Pay: Employers have the option to defer DEWS contributions during an employee's probation period. However, this is a "deferral," not an exemption. If the employee fails probation, no contribution is due. If the employee passes probation, the employer must make a lump-sum back-payment for all contributions dating back to the employee's very first day of service.
Employers must upload their contribution file and transfer the funds to the DEWS portal by the 21st day of the following month (e.g., July’s contributions are due by August 21st). Missing this strict deadline or failing to enroll an eligible employee can trigger a fine of up to USD 2,000 per employee, per violation.
If an employer is prohibited from making DEWS contributions because the employee (or the employer) is on a recognized Sanctions List (UN, UAE Federal, etc.), the employer must accrue the gratuity separately off-platform.
The obligation: The funds must be held as a liability on the employer’s books until the sanctions are lifted or the employee is terminated, at which point it is paid out directly. The employer is not liable for any investment "gains" the money would have made had it been in the DEWS fund.
UAE and GCC Nationals: GPSSA + Top-Up Payments
UAE and GCC national employees are registered with the General Pension and Social Security Authority (GPSSA) rather than DEWS. However, since March 2024 (DIFC Law No. 1 of 2024), if the GPSSA contributions an employee receives are lower than what they would have received through DEWS, the employer must make a top-up payment to bridge that gap, provided the shortfall results in a contribution of no less than AED 1,000/month.
Non-compliance with DEWS obligations (failure to enrol, late contributions, or insufficient contributions) can result in fines of up to USD 2,000 per employee, per violation.
Your DEWS Compliance Checklist
All eligible expatriate employees enrolled in DEWS (or a compliant QAS) from day one of employment
Monthly contributions calculated on correct basic salary (not total package)
Contributions paid on time every month
UAE/GCC national employees reviewed for GPSSA top-up eligibility
DEWS portal kept up to date with current employee roster
Employment contracts updated to reflect DEWS arrangements
Termination: Notice, Cause, and What You Owe
Termination is where most DIFC employment disputes arise. The rules here are precise, and courts enforce them precisely.
Notice Period
Under Article 62, minimum notice periods based on length of continuous employment are:
Length of Employment | Minimum Notice Period |
Less than 3 months (including probation/secondment) | 7 days |
More than 3 months but less than 5 years | 30 days |
5 years or more | 90 days |
You can pay salary in lieu of all or part of the notice period, this is common in the DIFC for senior roles.
The "14-Day" Final Settlement Rule
Regardless of the notice period, Article 19 mandates that all final payments (salary, accrued leave, and any gratuity) must be paid within 14 days of the termination date.
The penalty: If an employer is late, the court can award the employee a penalty of one day’s wage for every day delayed, capped at six months' pay.
Probation
Probation can last up to 6 months (or half the term of a fixed-term contract under 6 months, if applicable). During probation, the minimum notice requirements above do not apply, you can specify a shorter probation notice period in the contract.
While DEWS contributions can be deferred during this time, once an employee is confirmed, the employer must make a lump-sum back-payment for the entire probation period; however, if the employee is terminated before confirmation, no contributions are required for that service.
Termination with cause
Immediate termination for cause is permitted under Article 63, but only where the conduct of either party "warrants termination and where a reasonable employer or employee would have terminated." This is a high bar.
If the employer terminates for cause:
The employee is not entitled to payment in lieu of notice
Accrued gratuity and unused leave are calculated up to the termination date
DEWS contributions remain payable
If the employee terminates for cause:
The employee is entitled to payment in lieu of notice
Gratuity is calculated including the notice period they would otherwise have served
Accrued vacation leave is paid out including the notional notice period
An employee can request written reasons for a termination-for-cause within 30 days of the termination date. The employer must respond within 14 days of receiving that request.
Common examples of "cause"
While the law doesn't provide an exhaustive list, DIFC case law generally recognizes gross misconduct such as:
Theft, fraud, or financial dishonesty.
Physical violence or serious harassment in the workplace.
Deliberate and serious breach of confidentiality or data protection.
Fundamental and repeated refusal to follow lawful and reasonable instructions.
Claims limitation period
Employment claims must be brought within 6 months of the termination date (Article 10). This window is shorter than many comparable jurisdictions, and DIFC Courts enforce it strictly. If an employee doesn't bring a claim within 6 months, they generally lose the right to do so.
Practical note: Always document the reasons for termination properly, settle all final dues within the timelines required by law, and cancel the employee's residence visa within 30 days of the termination date if you are sponsoring it. Failure to do so carries fines under Schedule 2 of the Employment Law.
Anti-discrimination and workplace protections
The DIFC Employment Law has some of the most robust anti-discrimination provisions in the region, explicitly modelled on international best practice.
Protected Characteristics
Under Article 59, employers are strictly prohibited from discriminating against employees based on sex, marital status, race, nationality, age, pregnancy and maternity, religion, or mental/physical disability.
Discrimination includes direct treatment (treating someone worse because of a protected characteristic), indirect discrimination (a practice that seems neutral but disproportionately disadvantages a protected group), and creating a hostile or humiliating workplace environment related to a protected characteristic.
Harassment
Sexual harassment and other forms of workplace harassment are explicitly prohibited. This is not limited to senior-subordinate relationships — it applies across the entire workforce.
Burden of proof
This is important: in discrimination claims, if the employee establishes a prima facie case (meaning they present credible evidence that discrimination may have occurred), the burden shifts to the employer to prove it did not. This reversal of the usual burden of proof means your HR documentation, your consistent application of policies, and your disciplinary records matter significantly.
Victimisation protection
Under the law's concept of victimisation (essentially whistleblower protection), an employer cannot dismiss or subject an employee to adverse treatment because that employee raised a discrimination complaint or gave evidence in one. This is a meaningful protection and a meaningful risk for employers who respond badly to internal complaints.
Disability and pregnancy protections
Reasonable Adjustments: For employees with a disability, employers are legally required to make "reasonable adjustments" to the workplace or role to alleviate any disadvantage, provided it does not impose an "undue hardship" on the business.
Maternity Shield: As discussed in the termination section, an employer cannot dismiss an employee due to pregnancy or while she is on maternity leave; any such dismissal is automatically considered discriminatory.
DIFC Payroll and WPS Requirements
How DIFC payroll differs from mainland
DIFC companies operate under their own payroll framework and are generally exempt from the UAE mainland Wage Protection System (WPS) administered by MoHRE. The WPS, developed by the UAE Central Bank and MoHRE, is the electronic salary transfer system used across most of the UAE private sector, but DIFC has its own equivalent requirements for payroll transparency and compliance.
That said, the principle is the same: employees must be paid on time, in full, and in a traceable manner.
Payroll record-keeping
Under Article 57 and related regulations:
Payroll records must be kept at the employer's principal place of business in the DIFC, or be electronically accessible from it
You are legally required to retain these records for the full duration of employment and for 6 years after the termination date.
Employees must have access to their own payroll records
What your DIFC payroll system needs to handle
Running payroll for DIFC employees isn't just about processing salaries. Your system needs to:
Calculate and process monthly DEWS contributions correctly
Maintain separate calculations for employees with pre-2020 and post-2020 service (for gratuity vs. DEWS)
Apply the 50% basic salary floor when calculating benefits
Track leave accruals: Annual (20 days), sick (60 days), maternity (65 days), paternity (5 days)
Account for Ramadan reduced hours in salary calculations
Flag GPSSA obligations for UAE/GCC national employees and calculate top-up payments where applicable
Retain payroll records for 6 years post-termination
Generate compliant final settlement calculations on termination
DIFC vs. UAE Federal Labour Law: The key differences
Here's a quick snapshot of the most material differences:
Area | DIFC Employment Law | UAE Federal Labour Law |
Governing Statute | DIFC Law No. 2 of 2019 | Federal Decree-Law No. 33 of 2021 |
Legal Basis | English Common Law | UAE Civil Law |
Contract Language | English (mandatory) | Arabic (with translation permitted) |
Annual Leave | 20 working days | 30 calendar days |
Maternity Leave | 65 working days | 60 calendar days |
Paternity Leave | 5 working days | 5 working days |
End of Service | DEWS (contributions) or old gratuity | Gratuity lump sum |
Dispute Resolution | DIFC Courts | MoHRE / UAE Courts |
Claims Limitation | 6 months post-termination | 2 years post-termination |
Ramadan Hours | 2-hour reduction (Fasting Muslims) | 2-hour reduction (All employees) |
WPS Requirement | Not under MoHRE WPS | Mandatory under MoHRE WPS |
The differences in annual leave (20 working days DIFC vs. 30 calendar days UAE federal) and maternity leave are significant. Depending on working patterns, 20 working days can actually be less than 30 calendar days, something employees moving from mainland to DIFC roles should be aware of.
Employment disputes: How the DIFC courts work
The DIFC courts
The DIFC Courts are a fully independent common law court system, separate from the Dubai Courts and the UAE federal judiciary. Employment claims arising from DIFC employment relationships are heard here, not by MoHRE, not by the UAE Labour Courts.
The courts operate in English, follow adversarial proceedings similar to UK court practice, and have a well-developed body of employment case law. For employers, this means:
Proceedings are formal, documented, and move quickly
Strong documentary evidence (contracts, payroll records, disciplinary records) matters enormously
Judges are experienced in complex employment matters and are unlikely to be swayed by vague assertions
The 6-month window
A claim under DIFC employment law must be filed either during the employment or within 6 months of the termination date. Miss that window, and the claim is time-barred (with narrow exceptions). This cuts both ways — employees who delay lose their right to claim; employers who settle final dues promptly and correctly reduce their exposure significantly.
Settlement agreements
The DIFC Employment Law permits settlement agreements that waive an employee's right to bring future claims. For such an agreement to be valid, the employee must confirm in writing that they were given the opportunity to seek legal advice from a registered DIFC lawyer. Settlement agreements without this confirmation can be challenged.
The 2024 and 2025 amendments: What changed
The DIFC Employment Law is a living document, and it has been updated regularly since 2019. Here's what you need to know about the most recent changes.
DIFC Law No. 1 of 2024 (Effective March 2024)
This amendment addressed a contribution imbalance that had built up between expatriate employees (enrolled in DEWS) and UAE/GCC national employees (enrolled in GPSSA).
What changed: DIFC employers are now required to make top-up payments to eligible UAE/GCC national employees where their monthly GPSSA pension contributions fall short of what they would have received through DEWS, provided the shortfall is at least AED 1,000/month.
The practical impact: If you employ Emirati staff, you now need to review each employee's GPSSA contribution relative to the DEWS rate and calculate whether a top-up is required. Fines of up to USD 2,000 per employee apply for non-compliance.
DIFC Law No. 1 of 2025
The 2025 amendment primarily consolidated earlier changes, clarified calculation methods for DEWS contributions and legacy gratuity, and reinforced the penalty schedule for non-compliance. It did not introduce entirely new obligations but tightened the precision of existing ones.
Key takeaway for employers: Review your DEWS contribution calculations to make sure they're using the correct basic salary baseline and the correct rate based on each employee's service duration. If you've been rounding or estimating, now is the time to get precise.
Fixed-Term Probation Update (2024)
The law clarified the probation rules for short-term contracts to prevent "permanent probation" cycles.
The cap: For any fixed-term contract of less than 6 months, the probation period cannot exceed half the contract length (e.g., a 4-month contract can only have a 2-month probation).
The Way Forward
DIFC employment law is detailed, but it is not unfair. Every obligation it places on you as an employer has a corresponding protection for your employees, and employees who feel fairly treated are far less likely to end up at the DIFC Courts. The businesses that run into trouble are almost always the ones who used the wrong contracts, skipped the DEWS setup, or mishandled a termination.
Here's your employer compliance checklist to start with:
Contracts & Onboarding
Written English-language employment contracts issued within 7 days of start date
Basic salary confirmed at minimum 50% of total package
Probation period documented (maximum 6 months)
Contract references DIFC Employment Law No. 2 of 2019 as governing law
Payroll & DEWS
All eligible employees enrolled in DEWS (or a compliant Qualifying Scheme) from day one
Correct monthly DEWS contribution rates applied (5.83% under 5 years / 8.33% over 5 years)
UAE/GCC national employees assessed for GPSSA top-up eligibility
Payroll records maintained and accessible; archived for 6 years post-termination
Separate gratuity calculation maintained for any pre-February 2020 service
Leave Management
Annual leave (20 days), sick leave (60 days), maternity (65 days), paternity (5 days) correctly tracked
Carry-forward capped at 5 days for annual leave
Ramadan hours applied for Muslim employees (36 hours/week)
Termination
Correct notice periods applied based on length of service
Final dues (salary, DEWS contributions, unused leave, notice pay) calculated and settled promptly
Residence visa cancellation handled within 30 days of termination date
About Zoho Payroll
Zoho Payroll is part of Zoho's suite of 55+ integrated business applications, trusted by over 100 million users worldwide. Across every time zone and every industry, Zoho helps businesses run cleaner operations, and payroll is no exception.
For businesses operating in the UAE, Zoho Payroll is built for the region's specific compliance landscape: DEWS contribution tracking, end-of-service calculations that distinguish pre- and post-February 2020 service, leave management aligned with DIFC and mainland UAE entitlements, and payroll records maintained to the 6-year retention standard. It's the difference between managing DIFC payroll in a spreadsheet that eventually breaks and having a system that keeps up with every amendment.
Frequently Asked Questions
Does UAE Federal Labour Law apply to employees working in the DIFC?
No. The DIFC operates as an autonomous jurisdiction, and DIFC Employment Law No. 2 of 2019 is the sole governing statute for employment relationships within it. UAE Federal Labour Law (Federal Decree-Law No. 33 of 2021) does not apply.
Can I use a standard UAE mainland employment contract for a DIFC employee?
No. DIFC employment contracts must be in English, issued within 7 days of employment commencement, and must reference DIFC law as the governing framework. Using a mainland UAE template creates immediate compliance exposure, and such a contract would not reflect the correct DIFC entitlements for leave, DEWS, or termination.
What is DEWS and who must be enrolled?
DEWS: the DIFC Employee Workplace Savings plan is the mandatory defined contribution savings scheme that replaced traditional end-of-service gratuity for DIFC employees from 1 February 2020. All eligible expatriate employees working in the DIFC must be enrolled. UAE and GCC nationals are generally registered with GPSSA instead, though top-up payments may apply from 2024 onwards.
What happens if I miss DEWS contributions?
Failure to enrol employees in DEWS, make timely contributions, or maintain a compliant scheme can result in fines of up to USD 2,000 per affected employee per violation. Employees can also bring claims against employers who wrongfully withhold or delay contributions.
How is DIFC annual leave different from UAE federal law?
DIFC provides 20 paid working days of annual leave per year (after 90 days of service). UAE Federal Labour Law provides 30 calendar days per year. While 30 calendar days sounds more generous, its practical value depends on the working week — for a standard 5-day week, 20 working days = 4 weeks, which is comparable.
How long does an employee have to bring an employment claim at the DIFC Courts?
Claims must be filed either during the employment or within 6 months of the termination date. This limitation period is strictly enforced.
What are my obligations when terminating an employee?
You must give the correct statutory notice (or pay in lieu), calculate and pay all final dues — including accrued unused leave, DEWS contributions, and any applicable legacy gratuity, settle everything within the required timeframe, and cancel the employee's residence visa within 30 days of termination if you are the sponsor.
This guide is for informational purposes only and does not constitute legal advice. Employment law changes frequently — always consult a qualified DIFC employment lawyer for matters specific to your business.