Dubai International Financial Centre (DIFC) authority is planning to amend its employment law that deals with payments to employees that were terminated. The legal team of DIFC told a news agency that a new employment law amending the Article 18 in Law no.4 of 2005 will be consulted. According to Article 18, an employer must pay all wages and other amounts owing to its employee within 14 days of termination of employment. Failure to do so will result in the employer being liable to pay the employee a penalty equivalent to the last daily wage for each day the employer is in arrears.
In a recent report by UAE-based Clyde & Co, employers need to ensure that the contractual and statutory entitlements of an employee should be calculated correctly in accordance with the DIFC Employment Law. It suggested that companies should ensure that an employee receives their entitlements within 14 days of the termination regardless of the reason for termination and to show payment document.