GLOBAL PAYROLL MAGAZINE
11
S: Modernizing End Service Benefits in e DIFC and Beyond
By Thenji Moyo and Dilini Loku
The payroll industry has seen a dramatic evolution in recent decades due to advancements in technology and artificial intelligence (AI).
While the industry historically relied upon manual calculations and paper records, technology and AI algorithms have streamlined processes and claim to increase accuracy, compliance, and employee satisfaction. This article will explore
entitled under the now amended DIFC Law No.2/2019 (“DIFC Employment Law”) to end-of-service gratuity (ESG) upon being terminated, provided that they completed a year of continuous service and were not required to register with the General Pension and Social Security Authority (GPSSA). However, the absence of a strict obligation upon employers to accrue gratuity under the DIFC Employment Law may have created significant risk, as mismanagement of cash flow could have led to employees being unable to obtain ESG. DEWS has effectively replaced the traditional payment of ESG to employees and may have mitigated said risk. The scheme requires DIFC employers to make monthly contributions to their employees’ DEWS accounts and allows employees
the introduction of the Dubai International Financial Centre
(DIFC) Employee Workplace Savings Scheme (DEWS); an online platform that aims to facilitate the payment of end-of-service benefits to DIFC Employees. We will then examine recent developments and future trends expected across both the UAE and the GCC region. What is DEWS? DEWS was introduced via Employment Law Amendment Law No.4/2020 (“DIFC Law No.4/2020”). Prior to its introduction, DIFC employees were
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