New ADGM Regulations for Remote Workers from April 1st, 2025
Published Date:
May 16, 2025
Abu Dhabi Global Market (ADGM) has rolled out changes to employment regulations, hoping to bring major transformations to reflect global changes in workplace practices, allow flexible work arrangements, and provide greater clarity to both employees and employers regarding their rights and obligations.
The Registration Authority (RA) of the international financial centre of Abu Dhabi – ADGM, has published the new ADGM regulations for individuals employed under its jurisdiction earlier this year.
The law, which took effect on April 1st, 2025, aims to promote and foster best employment practices ADGM, one of the leading financial districts in the UAE.
New ADGM Regulations Allow Flexible Work Arrangements
A significant change in the new ADGM employment regulations is the amendment of the definition of an “employee,” which now allows remote and part-time work arrangements. This new rule applies only to ADGM-regulated companies, making it more attractive to tenants.
Now, companies in ADGM Abu Dhabi can hire remote workers and facilitate flexible working arrangements. A remote employee may reside either inside or outside the UAE, but his/her usual place of work is not the employer's premises at the ADGM.
The job contract must clearly state that the employee is a remote worker. The employer should also provide the necessary equipment for remote or hybrid work setups and be responsible for its maintenance, unless otherwise agreed upon between parties.
Clear Rules for Employers and Defining Part-time Employees
The new ADGM employment regulations set clear expectations for employers, making them responsible for obtaining and covering the cost of work permits, residency visas, and ID cards for all employees, including remote workers.
Repealing the existing employment regulations 2019, the new ADGM employment regulations classify a part-time employee if their job contract meets any of the following conditions:
Less than eight working hours per day
Less than five working days per week
Any other contractual terms or conditions that do not define full-time working under the employer's normal practices or company policy..
Clarifying Employer Liabilities and Employee Obligations
The new ADGM regulations also specify the obligations employees should fulfil towards the employers. This includes performing their duty as described in the contract with diligence and care, complying with the employer’s reasonable instructions, and refraining from disclosing any confidential information.
Starting April 1st, under the new law for remote work in ADGM, employers will be held vicariously liable for the actions, whether attempted or omitted, toward their employees in certain circumstances.
Employers should not discriminate against employees on the grounds of sex, marital status, pregnancy and maternity, nationality, race, religion, age, or disability.
An employer could be held liable if they have conducted any discrimination or harassment and cannot prove or demonstrate they have taken proper steps to prevent such occurrences. They are also restricted from victimising an employee over complaints and proceedings related to discrimination. Moreover, pregnancy and maternity have now been explicitly included as protected characteristics in discrimination claims.
If discrimination or victimisation claims are successful, the ADGM courts will award compensation to the employee for up to three years of their total salary. This can result in significant liabilities for the employer.
The reforms also detail other areas clarifying ambiguities related to employee entitlements, including part-time job roles, to protect the rights of workers.
What to Expect From The New Regulations
According to the Registration Authority (RA) of the international financial centre of Abu Dhabi, the new ADGM employment regulations will reflect global changes in workplace practices.
The authority believes the reforms made will prove beneficial as they continue to expand, grow, and promote innovation in work systems. These changes will provide the required information for the business community to perform their operations efficiently and ensure the protection and stability required for all parties.
The publication of the new employment regulations will represent Abu Dhabi’s strong commitment to continuously improving its business environment and establishing strategic regulatory frameworks and favourable conditions for companies and employees.
