If you are hiring into DIFC or ADGM, a MOHRE contract is the wrong document. These are separate common-law jurisdictions with their own employment statutes, their own courts, and — the point that catches employers — **funded end-of-service schemes with monthly contributions instead of accrued gratuity**. Miss the contributions and the arrears are not forgiven.
DIFC and ADGM Employment
Contract and the funded end-of-service schemes
If you are hiring into DIFC or ADGM, a MOHRE contract is the wrong document. These are separate common-law jurisdictions with their own employment statutes, their own courts, and — the point that catches employers — funded end-of-service schemes with monthly contributions instead of accrued gratuity. Miss the contributions and the arrears are not forgiven.
| Item | Detail |
|---|---|
| Employer | [COMPANY NAME], registration [NUMBER] |
| Jurisdiction | [DIFC / ADGM] |
| Governing law | [DIFC Employment Law / ADGM Employment Regulations] |
| Employee | [NAME], passport [NUMBER] |
| Job title | [TITLE] |
| Start date | [DATE] |
| Contract type | [Indefinite / Fixed term] — not restricted to fixed term as on the mainland |
| Probation | [NUMBER] months |
| Notice | [PERIOD], per the statutory minimum by length of service |
| Basic salary | AED [AMOUNT] per month — the contribution base |
| Total salary | AED [AMOUNT] per month |
| End of service scheme | [DEWS / qualifying alternative scheme / ADGM arrangement] |
| Contribution rate | [5.83% / 8.33%] of monthly basic salary |
| Language | English |
1. How This Differs from the Mainland
| Mainland | DIFC / ADGM | |
|---|---|---|
| Governing law | Federal Decree-Law 33/2021 | Zone employment statute |
| Legal tradition | Civil law, Arabic | English common law, English language |
| Courts | MOHRE then emirate courts | DIFC or ADGM Courts |
| Contract type | Fixed term only | Indefinite or fixed term |
| Contract registration | MOHRE, within 14 days | Zone requirements |
| End of service | Gratuity accrued, paid at exit | Funded scheme, monthly contributions |
| Emiratisation | Applies | Does not apply |
| ILOE | Mandatory | Optional |
| WPS | Mandatory at 5+ employees | Zone arrangements |
| Data protection | Federal PDPL | DIFC or ADGM regime |
| Dispute route | MOHRE mediation first | Zone court, common-law procedure |
5 more pages in the Word file
This is page 1 of the Word document, exactly as it appears when you open it. Fields shown like THIS are placeholders for you to complete.
These notes accompany the template and explain the drafting choices, the compliance points and the mistakes most often made with this document. They appear as a final page in the Word file, intended to be deleted before the document is executed.
DIFC and ADGM are separate common-law jurisdictions with their own employment statutes and courts. Federal Decree-Law 33/2021 does not govern them. Using a mainland contract produces a document referencing the wrong law, the wrong end-of-service mechanism and the wrong dispute route.
The funded scheme replaces gratuity accrual with actual monthly transfers. There is no equivalent of settling at the end. Arrears accumulate, are pursued, and surface on audit or on an employee query about their scheme balance.
The single most common DIFC employment failure is an employer that enrolled employees and then missed contributions — usually after a payroll change or a finance handover. Automate it and reconcile monthly against headcount.
The contribution rate increases with length of service on the published rates. Employers set the initial rate correctly and never revisit it, underpaying quietly for years. Diarise the service anniversary.
As with mainland gratuity, the base is basic salary rather than total package. The basic-to-allowance split therefore has a direct monthly cost consequence in these zones, not just a deferred one.
The mainland requirement that all contracts be fixed term does not apply here. Indefinite contracts are available, which is one of the practical attractions of the zones for senior hires.
A statutory penalty accrues daily where final entitlements are not paid on time. This is a harder-edged provision than the mainland fourteen-day rule and it compounds. Settle promptly and keep the evidence of payment.
Emiratisation obligations do not attach to these zones, and ILOE subscription is optional rather than mandatory. That is a genuine cost and administrative difference that belongs in any comparison of where to place headcount.
DIFC entities follow the DIFC Data Protection Law and ADGM entities the ADGM Regulations. The federal PDPL does not apply to them. An employee privacy notice drafted for the federal regime is the wrong document, citing the wrong regulator and the wrong rights.
A transfer from a mainland entity to a DIFC entity ends the mainland employment. Gratuity crystallises and must be settled, the permit and visa change, and scheme contributions start fresh. Groups treat this as an internal move and create an unsettled gratuity liability.
Personal data moving from a DIFC entity to a mainland affiliate is a restricted transfer, because the mainland is not on the DIFC adequacy list. Shared HR systems across a mixed group need this addressed contractually.
Contracts, handbooks, policies, payroll arrangements and privacy notices all differ. A group running one set across both is wrong in one jurisdiction, usually the zone, because the mainland documents were written first.
These zones support restrictive covenants, settlement agreements and other common-law instruments in a familiar form, with courts that apply them predictably. That is a real advantage for senior and commercially sensitive hires.
ADGM operates its own end-of-service arrangement, and its rules are not identical to DIFC. Do not assume DEWS rates and mechanics apply — confirm with the relevant authority for the specific zone.
Reflects DIFC and ADGM positions current as of {{DATE OF USE}}. Employment statutes in both zones have been amended, and DEWS rates, qualifying scheme rules, ADGM arrangements and penalty provisions change — confirm the current requirements with the DIFC Authority, ADGM Registration Authority or a zone employment adviser before hiring.
This is a ready-to-use template provided for convenience. Laws and requirements change, and every situation is different — please have it reviewed by a qualified professional (a lawyer, corporate secretary, or accountant as relevant) before you rely on it.