Mar 12, 2019

New DIFC Employment Law Expected to Introduce Minimum Limit of 50% of Employee’s Gross Salary as Basis for End of Service Gratuity Calculation

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The new law is expected to be enacted around Q1 of 2019 and to introduce significant changes to the current DIFC Employment Law (DIFC Law No. 4/2005, as amended by DIFC Law No. 3/2012) as per the consultation papers published in early 2018. For instance, it is expected that the current Article regulating the end of service gratuity will be amended by limiting the minimum percentage at 50% of what an employee’s basic salary may be as a proportion of their gross salary for purposes of calculating the gratuity payment.