Employment in Financial Services

Employees must be provided with an employment contract across the different jurisdictions in the UAE.  This applies to all employees, regardless of whether they work in the financial services industry.

In the DIFC, the DIFC Employment Law requires employers to provide their employees with a written contract that must specify the following:

• the parties’ names;
• the start date;
• the salary and any allowances to be provided to the employee;
• the applicable pay period;
• hours and days of work;
• vacation leave and pay;
• notice to be given by either party to terminate employment; 
• the employee’s job title;
• confirmation as to whether the contract is for an indefinite period or for a fixed term;
• the place of work;
• applicable disciplinary rules and grievances procedures;
• the probation period;
• a reference to any applicable policies and procedures (including any codes of conduct) and where these can be accessed; and
• any other matter that may be prescribed in any regulations issued under the DIFC Employment Law.

In the ADGM, the ADGM Employment Regulations requires employers to provide their employees with a written contract that must specify the following:

• the parties’ names;
• the start date;
• remuneration;
• the applicable pay period;
• hours and days of work; and
• any terms and conditions relating to:
  • vacation leave and pay, national holiday entitlement and pay;
  • sick leave and sick pay;
  • the notice period that either party is required to give to the other in order to terminate employment;
  • the employee’s job title;
  • whether the employment is for an indefinite or fixed term;
  • the place of work;
  • any disciplinary rules or grievance procedures applicable to the employee; and

any other matter that may be prescribed by the employer.

Both the DFSA General Rulebook and FSRA General Rulebook contain Best Practice Guidance for remuneration structure and strategies of authorised entities. In particular, the guidance identifies that the governing body of an authorised entity ought to consider the risk to which the firm could be exposed to as a result of the conduct or behaviour of its employees, and to consider the ratio and balance between fixed and variable remuneration components, the nature of the duties and functions performed by the relevant employees, the assessment criteria against which performance based components of remuneration are to be awarded, and the integrity and objectivity of any performance assessment against that criteria.