2024-03-14 16:20:04
The Dubai International Financial Center announced the issuance of new amendments to some legislation related to the Employment Law, the Trust Funds Law, the Corporations Law and the Employment Law, following a period of public consultation in 2023. The amendments came into effect on March 8, and the changes to the operational regulations will take effect from December 27, 2023.
Jack Visser, Chief Legal Officer at the DIFC, said: “The Centre’s legal and regulatory framework is based on international standards and common law principles.
The new legislative amendments adopted by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai (may God protect him), ensure that the center’s laws continue to keep pace with and adopt the best international practices and meet the unique needs of the region. At the DIFC, our top priority is our commitment to providing an ideal framework for financial services, innovative technology and related sectors to grow and develop through clear and transparent laws.”
Amendments to the Employment Law
The DIFC has made amendments to Part 10 of the existing Employment Law which will require DIFC employers to make “additional” payments to an employment qualification plan (such as the DIFC Workplace Employee Savings Scheme) to their GCC national employees (in addition to Their contributions to the General Pensions and Social Security Authority) in circumstances where the value of their contributions to the General Pensions and Social Security Authority is less than what they would have received from monthly contributions to the end-of-service gratuity under the Employment Law if they were not citizens of cooperation countries.
In fact, this amendment leads to equal opportunities for citizens of the cooperation countries in the center, who would otherwise have received less contributions through their monthly contributions to the system of the General Authority for Pensions and Social Security. However, the monthly “extra” payment requirements must not exceed AED 1,000.
Other amendments to the Employment Law address situations in which an employment rehabilitation plan is prohibited from accepting contributions from the employer, or with respect to the employee, as a result of specified penalties.
These amendments resulted in the fact that when the employer or employee is subject to penalties that prevent the job rehabilitation plan or its service providers from receiving end-of-service gratuity contributions on behalf of the employee, the employer’s obligation to provide this contribution on a monthly basis to the job rehabilitation plan is suspended and replaced by the employer’s obligation to To collect these contributions on behalf of the employee(s) concerned until the sanctions related ban is lifted or upon termination of the employment relationship, whichever comes first.
Trusts and foundation law
The series of changes to the Trust Funds Law and the Foundations Law relate to strengthening the rights of legal jurisdiction of the Centre’s courts over the management of trust funds and institutions in the Centre, and excluding foreign court procedures.
These amendments are, in essence, what is known in the sector as protective measures to ensure that the provisions and requirements of the Center’s law in this regard are not circumvented by foreign courts or parties that do not wish to submit to the jurisdiction of the Center’s courts in adjudicating matters related to the Centre’s trust funds and institutions. The changes to the Enterprise Act are intended to expand the role of registered agents to allow them to coordinate with the Registrar of Companies to provide certain compliance duties on behalf of the enterprise (as is already permitted for corporate service providers under the Centre’s specific regulations for companies and family offices).
Operation and operational regulations
The amendments to the Employment Law relate to the requirements of the OECD regarding the retention of records following the liquidation of an enterprise and to update the definition of “confidential communications”. The latter is now limited to communications arising from the provision of professional legal advice or from the lawyer-client relationship, removing the phrase “or any other similar relationship”, which the OECD considered too broad and broad.
Amendments have also recently been made to the operational regulations to give the Registrar of Companies specific powers to deal with cafés and restaurants that operate until late at night and may cause inconvenience to other tenants as a result of noise or other socially inappropriate behaviour.
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