Employers face tougher penalties for violating the Dubai International Financial Centre (DIFC)’s new employment law, which features statutory paternity leave and reduced statutory sick pay. Effective 28 Aug 2019, Law No. 2 of 2019 applies to both full- and part-time employees, and some measures apply to secondees. The law aims to balance the interests of employers and employees and align the DIFC with international best practice, according to the DIFC.A separate DIFC initiative addresses changes to end-of-service gratuity payments.
The DIFC is a financial free zone established by a United Arab Emirates decree with authority to establish its own legal and regulatory framework — approximately 24,000 employees work in the DIFC.
Key provisions of the law include the following: