United Arab Emirates: Abu Dhabi Employment Regulation Changes Forthcoming

Effective April 1, 2025, new employment regulations will take effect for the Abu Dhabi Global Market Authority (ADGM), including the following immigration-related changes:

• requiring employers to cancel work permits, residency visas and identity cards, and cover any related cost in this procedure; whereas currently regulations make no specific provisions about cancellation procedures or costs;
• removing the two-year pay cap on end-of-service gratuities, requiring the gratuity to be paid regardless of the termination reason, and allowing employers to offer a pension or savings scheme as an alternative to gratuity payments, among other changes to gratuity rules;
• creating a new category (called “Part-Time Employee”) which seeks to simplify the calculation of leave and other entitlements for individuals working reduced hours. The current regulations do not define or address part-time employment.
• creating a new category (called “Remote Employees”). As part of this, remote workers residing and working outside the United Arab Emirates will not require a UAE residency visa or work permit. Current regulations are silent on remote working.