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recruitment or cancellation costs associated with the employment process. This ensures that employees are not financially burdened by hiring expenses. Recognition of Remote Working The new Regulations officially recognise remote working in ADGM. Employees working remotely, who do not reside in the UAE, are not required to obtain a residence visa or work permit. This change makes it easier for companies to engage remote workers from outside the country without the need to go through a visa process. This new amendment may have a significant impact on payroll as companies with remote workers in multiple countries will now have to consider compliance with local tax laws in multiple jurisdictions. Companies must now consider the nuances of remote working laws that vary by region. Under the Regulations, employers are now responsible for maintaining the technical equipment used by employees for remote working, unless agreed otherwise. This clarification ensures that both employers and employees understand their responsibilities
regarding remote working arrangements. Some companies are now providing stipends for home office equipment, internet, and utility costs for remote workers. Payroll departments must ensure that these stipends and benefits are properly recorded and compliant with local tax laws. Visa Cancellation Post- Termination The Regulations stipulate that an employee’s residence visa must be cancelled “as soon as reasonably practicable” after the termination of employment. Further, this cancellation cannot be conditioned upon the employee waiving their rights under the legislation. As a standard practice, we see that employers usually cancel the visa within 30 days of the termination date. Keeping the employee on a company visa any longer may expose the employer as they are the sponsor on record for the employee. Working Hours and Ramadan The Regulations stipulate that working hours should not exceed 48 hours within any seven-day period unless otherwise agreed upon in writing by the employee.
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GLOBAL PAYROLL MAGAZINE ISSUE 9
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