The final Law Update of 2022 is here, and it’s packed full of articles. The double edition features two focus areas, first is a spotlight on Energy and Resources and second we feature a collection of articles on Transport and Logistics. The developments occurring in these sectors in the MENA region are unprecedented and our lawyers cover vast themes for you.
The Energy and Resources focus features topics such as diversifying energy resources, solar PV, mining in the Middle East, renewable energy and green hydrogen. From a transport perspective, we draw attention to the Bahrain metro project, discuss the challenges and remedies associated with the repossession of an aircraft, and there is advice on what to consider should a party vary the terms of a shipping contract.
This edition navigates you through updates from across jurisdictions such as, Oman, Jordan, Saudi Arabia, Egypt, Iraq, Qatar, and the UAE. Each article is timely and provides insights into legal issues and cases that are affecting these sectors across the region.Read the full edition
The legislative changes in respect of the new DIFC employee workplace savings scheme (“Scheme”) have now been finalised and enacted by way of the Employment Law Amendment Law (DIFC Law No. 4 of 2020) which amends certain provisions of DIFC Law. 2 of 2019, as amended (“DIFC Employment Law”). The DIFC Authority has also issued Employment Regulations, which set out the Scheme requirements in detail (“Regulations”).
Unless defined in this summary, the capitalised terms below have the meanings given to them under the DIFC Employment Law or the Regulations, as applicable.
The following summarises the key issues, including a number of developments since the draft legislation was released for public consultation last year:
Provided that an employee has at least one full year of continuous service with their DIFC employer (including before and after the Qualifying Scheme Commencement Date) as at the termination of the employment, the employee is entitled to end of service gratuity in respect of their period of employment prior to the Qualifying Scheme Commencement Date (which would be calculated on a pro-rata basis if less than one year of service had accrued prior to the Qualifying Scheme Commencement Date).
Any end of service gratuity which an employee has accrued prior to the Qualifying Scheme Commencement Date (“Gratuity Transfer Amount”) may either be paid to them directly on termination of their employment or transferred into the employee’s Qualifying Scheme. Provided that the latter is done with the employee’s prior written consent, the employer would not be required to make up for any shortfall between the Gratuity Transfer Amount (calculated on the employee’s basic salary as at the Qualifying Scheme Commencement Date) and what their end of service gratuity entitlement would have been, had it been paid to the employee on termination of their employment (based on their final basic salary) rather than being transferred into the employee’s Qualifying Scheme.
To help you manage the transition process, we would be happy to assist by:
Copies of the DIFC Employment Law and the Regulations are now available in the “Employment” section of the DIFC website: https://www.difc.ae/business/laws-regulations/difc-laws-regulations/