ADGM

ADGM Employment Regulations: Employer Guide

2026-05-13 · 6 min read · By Aureus Worldwide

Employers in the Abu Dhabi Global Market operate under a distinct body of law: the ADGM Employment Regulations 2019, as amended. These regulations govern how staff are hired, managed and paid within the free zone, and they are separate from the UAE Federal Labour Law that applies onshore. If you employ people in ADGM, understanding the Employment Regulations is not optional, they set the minimum standards for contracts, leave, end-of-service benefits and termination, and they are enforced through the ADGM Courts. This guide walks employers through what the ADGM Employment Regulations require.

ADGM has its own employment law

The most important thing to grasp is that ADGM runs its own employment regime. A business in ADGM does not apply the onshore UAE Federal Labour Law to its ADGM staff; it applies the ADGM Employment Regulations 2019. The two share many concepts, written contracts, paid leave, gratuity, notice, but they differ in detail, and disputes are heard by the ADGM Courts under the common-law framework the jurisdiction is built on. Because the Regulations have been amended since 2019, always work from the current consolidated version rather than the original text.

This distinction also matters when you compare bases. If you are weighing ADGM against an onshore Abu Dhabi presence, our guide to ADGM versus Abu Dhabi mainland sets out how the employment regimes differ alongside everything else.

Employment contracts and minimum terms

The Regulations require a written employment contract that sets out the key terms of the relationship, the parties, job, start date, remuneration, hours, leave and notice. Beyond the contract itself, the Regulations impose minimum standards that a contract cannot undercut: you can agree terms more generous than the statutory floor, but not less. Probation periods are permitted up to a statutory maximum, and the contract should be clear about pay, benefits and the notice each side must give.

Working hours and leave

The Regulations set baseline entitlements for hours and time off. The figures below reflect the well-established minimums, but because the Regulations are periodically updated you should confirm the current position before relying on them.

Annual leave generally accrues after a qualifying period of employment and is pro-rated for those who join or leave part-way through the year. Overtime and hours arrangements should be dealt with expressly in the contract.

Sick leave and family leave

The Regulations provide paid sick leave subject to caps set out in the text, typically with a portion at full pay and a portion at reduced or no pay once an aggregate limit in a rolling period is reached. They also provide maternity leave, a defined statutory period, in the region of 65 working days, with part of it at full pay, and a shorter period of paternity leave for eligible employees. Because the exact split of paid and unpaid days and the eligibility conditions have been refined by amendment, treat these as a framework and check the current entitlements when you build your policies or calculate an individual's rights.

End-of-service gratuity and pensions

End-of-service benefits in ADGM depend on the employee's nationality:

• Non-GCC nationals not enrolled in a qualifying pension scheme are entitled to an end-of-service gratuity based on basic wage. The established formula is broadly 21 days' basic wage for each of the first five years of service and 30 days' basic wage for each year thereafter, subject to an overall cap and to a minimum qualifying period of service.
• UAE and other GCC nationals are generally enrolled in the relevant pension and social security scheme, with the employer making contributions, rather than accruing gratuity.

Gratuity is a real cost that builds up over time, so employers should account for it as a liability rather than treating it as a surprise at the point of departure, something our accounting team routinely helps ADGM employers provide for.

Termination and notice

Either party may end the employment by giving the notice the contract requires, subject to statutory minimums that generally scale with length of service. The Regulations also recognise termination for cause in defined circumstances. Whatever the route, employers should document the reason, follow a fair process, settle all final entitlements, including accrued leave and any gratuity, and be mindful of the protections the Regulations give employees against unlawful or discriminatory dismissal. Getting the final settlement calculation right is where disputes most often arise.

Wages, records and the WPS

Employers must pay wages properly and on time, and ADGM expects wages to be paid through compliant channels with appropriate records kept. A Wages Protection System (WPS)-style requirement applies so that salary payments are traceable, and employers must maintain employment records that the authorities can inspect. Clean payroll records are not just good practice, they are part of your compliance footprint, and they feed directly into your ongoing ADGM filing obligations. For how these duties fit the wider governance picture, see our ADGM finance officer guide.

Health insurance, visas and repatriation

Some obligations sit alongside the Employment Regulations rather than within them:

• Health insurance, employers must provide cover in line with Abu Dhabi's mandatory health insurance rules.
• Visas and establishment card, ADGM employers sponsor their staff, which runs through ADGM and the relevant immigration authorities.
• Repatriation, employers may have obligations relating to an employee's end-of-service repatriation.

These practical duties are part of the true cost and administrative load of employing people in ADGM, and they should be built into your onboarding and offboarding processes.

Non-discrimination and part-time work

The Regulations contain anti-discrimination protections, requiring employers not to discriminate against employees on protected grounds, and they protect employees from victimisation for asserting their rights. There are also provisions dealing with part-time and flexible working arrangements, so that non-standard hours are still governed by clear rules. Employers with diverse, international teams should make sure their policies and handbooks reflect these protections.

An employer compliance checklist

1. Issue a compliant written contract to every employee before they start.
2. Ensure terms meet or exceed the statutory minimums in the current Regulations.
3. Track annual leave, sick leave and family leave accruals accurately.
4. Provide for end-of-service gratuity as a running liability in your accounts.
5. Enrol GCC and UAE nationals in the correct pension scheme.
6. Pay wages through compliant channels and keep full records.
7. Arrange health insurance, visas and establishment cards.
8. Apply fair, documented termination and final-settlement processes.
9. Keep policies aligned with non-discrimination and part-time rules.
10. Re-check the current consolidated Regulations, as they are amended over time.

How Aureus Worldwide can help

Aureus Worldwide is a Dubai-based accounting, tax and compliance firm, and we support ADGM employers on the financial and administrative side of employment, running compliant payroll, calculating and provisioning for end-of-service gratuity, maintaining wage and employee records, and building the numbers into your management accounts and business process outsourcing. We are not a law firm, so for the drafting and interpretation of contracts, disciplinary matters and disputes we work alongside your employment counsel, and we are not an ADGM-registered auditor. To get your ADGM payroll and employment administration running cleanly, contact us.

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