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Compliance News

United Arab Emirates

UAE

The United Arab Emirates Introduces a New Option for End of Service Benefits

The UAE cabinet recently introduced an alternative voluntary option for private sector employers to deliver the End of Service Gratuity (EOSG) to their expatriate (non-UAE or GCC National) employees in the UAE and its free zones. The new government-sanctioned option involves externally funding a gratuity savings plan through monthly contributions that would replace the lump-sum payment calculation under the existing EOSG system. This gives interested employers the ability to move to a defined contribution model and away from a defined benefit model linked to final salary.

UAE

UAE Passes Amendments to Emiratization Framework

The United Arab Emirates (UAE) government had previously introduced legislation increasing the number of UAE nationals who are working in the private sector by increasing quotas under its existing Emiratization framework. All private sector employers with at least 50 employees will be required to increase Emiratis’ proportion in the workforce to at least 10% of the workforce by 2026.

The Emiratization requirements which entered into effect on 30 June 2023 increased the Emiratization quota from a 2% to a 4% Emiratization quota.

UAE

UAE introduces mandatory unemployment insurance scheme [Updated]

The United Arab Emirates (UAE) government recently introduced – for the first time – a mandatory unemployment insurance scheme. The scheme aims to protect employees who lose their jobs for reasons out of their control, by ensuring the availability of unemployment income for up to three months. The new Involuntary Loss of Employment (ILOE) insurance scheme, which was announced by the Minister of Human Resources and Emiratization in May 2022, came into effect 1 January 2023.

UAE

UAE expands equal pay provisions

The president of the UAE recently approved Decree Law No.6 2020 (the Decree), expanding existing equal pay provisions. The Decree was issued on 25 August 2020, and should enter into effect one month after its publication in the UAE Official […]

UAE

UAE introduces parental leave benefit

The president of the UAE recently approved Decree Law No.6 2020 (the Decree) granting private sector employees five working days of employer-paid new parental leave. The Decree was issued on 25 August 2020 and should enter into effect one month […]

UAE

UAE DIFC mandatory retirement plan final guidance

Update: Final guidance has been issued by the DIFC, a special economic zone in Dubai, on the implementation of the new DIFC Employee Workplace Savings plan (DEWS), which replaces the current end-of-service gratuity payment plan for expatriate employees. The plan, […]