End of Service Gratuity Payment of end-of-service gratuity is now mandatory for all employees, regardless of the reason for termination. This ensures that employees receive their rightful financial entitlement upon the conclusion of their employment. The new Regulations also eliminate the cap on gratuity payments, which previously limited them to a maximum of two years’ wages. Repatriation Ticket Employers are required to provide employees with a repatriation ticket within 30 days of the termination date. The employer may choose to either book the ticket themselves or reimburse the employee for the cost incurred in booking the repatriation ticket. Remote workers who do not reside in the UAE or perform work in the UAE will not be entitled to a repatriation ticket. At the time of termination, HR and payroll services will need to monitor the entitlement offered to remote workers who do not reside in the country. Pension Scheme Option Employees may opt to enroll in a pension scheme as an
alternative to receiving an end- of-service gratuity, provided that the employer offers this option. Waiving Rights Under ADGM Employment Regulations Any waiver of rights under the Regulations will require a binding settlement agreement between both parties. This safeguard ensures that employees are not forced to waive their rights without a clear and mutual With the implementation of these changes starting on 1 April 2025, companies operating within ADGM will need to carefully review their policies and procedures to align with the new Regulations. These updates reflect a progressive approach to employee rights and employer responsibilities, particularly in the areas of family-friendly benefits, remote working, and non- discrimination. understanding. Conclusion
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ISSUE 9 GLOBAL PAYROLL MAGAZINE
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