If you have worked elsewhere in the UAE, several things here are different. There is **no gratuity accrual** — your end-of-service benefit is built by monthly contributions into a funded scheme. Your contract need not be fixed term. And disputes go to the **DIFC or ADGM Courts**, in English, not to MOHRE.
Employee Handbook — DIFC and ADGM
For employees of [COMPANY NAME]
If you have worked elsewhere in the UAE, several things here are different. There is no gratuity accrual — your end-of-service benefit is built by monthly contributions into a funded scheme. Your contract need not be fixed term. And disputes go to the DIFC or ADGM Courts, in English, not to MOHRE.
| Item | Detail |
|---|---|
| Employer | [COMPANY NAME], [DIFC / ADGM] registration [NUMBER] |
| Governing law | [DIFC Employment Law / ADGM Employment Regulations] |
| End of service | [DEWS / certified alternative scheme / ADGM arrangement] |
| Contribution rate | [5.83% / 8.33%] of monthly basic salary |
| Scheme administrator | [NAME] |
| Courts | [DIFC Courts / ADGM Courts] |
| Data protection regime | [DIFC DP Law 5/2020 / ADGM DP Regulations 2021] |
| HR contact | [NAME], [EMAIL] |
| Status | Not contractual — policy and guidance |
| Version and date | [NUMBER], [DATE] |
1. Status of This Handbook
1.1This handbook describes our policies and how things work here. It does not form part of your contract of employment.
1.2Where this handbook and your contract or the applicable law differ, the contract and the law prevail.
1.3We may update this handbook and will notify material changes.
2. How This Differs From the Rest of the UAE
| Mainland and most free zones | Here | |
|---|---|---|
| Governing law | Federal Decree-Law 33/2021 | Zone employment law |
| Contract type | Fixed term only | Indefinite or fixed term |
| End of service | Gratuity accrued and paid at exit | Monthly contributions to a funded scheme |
| Who holds your benefit | The employer, as a provision | The scheme, in your name |
| Disputes | MOHRE, then the courts | [DIFC / ADGM] Courts, in English |
| Language of proceedings | Arabic | English |
| Emiratisation | Applies on the mainland | Does not apply |
| ILOE unemployment insurance | Mandatory | Optional |
| Data protection | Federal PDPL | Zone regime |
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 operate their own employment laws with different notice periods, leave entitlements, end-of-service arrangements and dispute routes. Adapting a mainland handbook by changing the header produces a document wrong on several terms at once and defensible on none.
Staff arriving from elsewhere in the UAE expect a gratuity calculated at exit. Here the benefit is built monthly in their name and does not depend on the employer having cash at the end. Say so plainly — it is a genuine advantage and it is routinely not explained.
The most common failure in these zones is an employer that enrolled staff and then missed contributions after a payroll change or a finance handover. An employee who checks the portal will find it long before an exit calculation does.
As with mainland gratuity, the base is basic salary rather than total package, so the basic-to-allowance split has a direct monthly cost consequence here rather than a deferred one. Be transparent about it at offer stage.
The contribution rate increases with length of service. Employers set the initial rate and never revisit it, underpaying quietly for years. Diarise each employee’s service anniversary.
The mainland requirement that all contracts be fixed term does not apply. Indefinite contracts are available and are one of the practical attractions of these zones for senior hires.
A statutory penalty accrues daily where final entitlements are not paid on time, and it compounds. This is harder-edged than the mainland fourteen-day rule. Settle promptly and keep evidence of payment.
Working under zone employment law does not change the position on conduct elsewhere in the UAE, including public behaviour and online activity, which can affect residence status. Employees frequently assume the zone insulates them. Say it once, plainly.
Emiratisation obligations do not attach here and ILOE subscription is optional rather than mandatory. Both are genuine differences that belong in a handbook so employees are not applying mainland assumptions.
DIFC entities follow DIFC Law 5/2020 and ADGM entities the ADGM Regulations. Referring employees to a federal PDPL policy points them at the wrong law, the wrong regulator and the wrong rights.
Moving an employee from a DIFC entity to a mainland affiliate ends the zone employment. The scheme benefit must be dealt with, gratuity accrual begins under the other regime, and the permit and visa change. Groups treat this as an internal transfer and leave benefits unsettled.
Not to MOHRE. The procedure is common law with disclosure and witness evidence, which is a materially different experience from an onshore employment claim. Employees and managers both benefit from knowing this in advance.
ADGM operates its own end-of-service arrangement and its rules are not identical to DIFC. Do not assume DEWS rates and mechanics transfer — confirm with the relevant authority for the specific zone.
A handbook expressed as contractual turns every policy into a term requiring consent to change. Say it is guidance, and keep genuinely contractual items in the contract.
Reflects DIFC and ADGM positions current as of {{DATE OF USE}}. Employment laws in both zones have been amended, and scheme rates, qualifying scheme rules, leave entitlements, notice periods and penalty provisions change — confirm with the DIFC Authority, ADGM Registration Authority or a zone employment adviser before issuing.
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.