ADGM Employment Regulations 2025: Key Rules for ADGM Employers

Remote staff come within the wider definition of employee

The ADGM Employment Regulations 2024 expand the definition of employee to accommodate remote workers and clarify provisions for part-time employees. The article covers the contract clauses employers should consider, the employer's work permit and visa obligations, discrimination and victimisation obligations, and the fines the Registrar may impose.

By Nour Attorneys / 22 August 2026

Reviewed by Mohamed Noureldin, Founder, Managing Partner & Senior Legal Consultant

The Employment Regulations 2024, which came into force on 1 April 2025, repealed the Employment Regulations 2019 and apply to employers operating within the Abu Dhabi Global Market (ADGM) free zone. They do not apply to employers which hold a dual licence issued by the Abu Dhabi Department of Economic Development and whose employees are governed by the UAE Labour Law, or to employers the Board has designated as exempt.

The ADGM is an international financial centre that attracts businesses and talent from across the globe. It regularly updates its regulatory framework to maintain its competitive edge and a fair and transparent working environment. The Employment Regulations 2024 are a significant evolution of that framework. They are designed to address modern workplace dynamics and enhance clarity for both employers and employees. Among the changes are those related to employee definitions, flexible working arrangements, work permits and protections against discrimination.

Protections and entitlements for remote workers

One of the most notable changes is the expanded definition of 'employee'. It is a direct response to the evolving global workforce and the increasing prevalence of remote and flexible working models. The Regulations explicitly accommodate remote employees and provide a clear legal framework for engaging them within the ADGM.

This gives employers greater flexibility in talent acquisition and ensures that remote workers benefit from the protections and entitlements of the Regulations, save for those sections which are expressly excluded. The Regulations also clarify the provisions for part-time employees. They address previous ambiguities, ensuring fair treatment and appropriate entitlements for all types of employment arrangement.

Contract clauses for remote and flexible working

For ADGM employers, the expanded definition necessitates a review of existing employment contracts and internal policies. Making sure these documents accurately reflect the new categories of employees and the provisions for flexible working is crucial.

Employers should consider drafting specific clauses for remote work agreements that outline expectations, responsibilities and the legal framework governing such arrangements. For guidance on structuring flexible employment contracts and complying with the latest ADGM regulations, consider consulting our specialist services in labour and employment law advisory.

Onboarding and offboarding employees in the free zone

Where required, the Regulations make the employer responsible for obtaining, maintaining and paying the cost of employee work permits and, where applicable, employer-sponsored residency visas. The employer must cancel them as soon as reasonably practicable following the termination date, and in any event within the time frame set by the relevant Competent Authority. These duties do not apply to remote employees who do not reside in and do not perform work in the UAE.

Discrimination, victimisation and compensation awards

Beyond the administrative changes, the Regulations set obligations related to discrimination and victimisation in the workplace. An employer must not discriminate on the grounds of an employee's sex, marital status, pregnancy and maternity, race, nationality, religion, age or disability.

Employers should implement policies and training programmes to prevent discrimination and victimisation. An employer may be vicariously liable for an employee's act of discrimination or victimisation if it is unable to show that it took all reasonable steps to prevent the employee from carrying out that act.

Where an employer discriminates against or victimises an employee, the employee may apply to the Court for a declaration to that effect. The Court may order the employer to pay compensation, subject to a maximum of three years' wages. This underlines the importance of reviewing and updating internal policies and employment contracts to align with these protections. Nour Attorneys offers services in employment contracts to help you with these requirements.

Penalties for breaches

Under the Employment Regulations 2024, the Registrar may impose fines for contraventions, and any financial penalty it imposes shall not exceed the amount specified for level 8 on the Fines Scale.

Proactive steps against non-compliance

It is imperative for ADGM employers to conduct a thorough audit of their current employment practices and seek legal counsel to understand the full scope of these liabilities. Our labour and employment law advisory team gives practical legal support in this area.

Proactive measures, such as training for HR personnel and management, can significantly mitigate the risk of non-compliance and the associated financial and reputational repercussions.

Related services

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. Readers should seek professional legal advice tailored to their specific circumstances before making any decisions or taking any action based on the content of this article.

Nour Attorneys Team