It is common practice for employers in the United Arab Emirates to reduce their liability for the payment of service allowance by distributing a worker`s salary in basic wages and allowances. However, the new DIFC Labour Act stipulates that the distribution of service and the service allowance must be calculated on the basis that the worker`s base salary is at least 50% of his total annual salary, so that the same is true when less than 50% of a worker`s salary has been included in the employment contract as a base salary. The new legislation complements DIFC`s commitment to international best practices, with the Labour Act addressing key issues such as paternity leave, sick pay and end-of-service settlements. Employer-focused provisions include extending workers` obligations, reducing statutory sickness pay, limiting the application of mandatory late payments for end-of-service invoices, and recognizing transaction agreements between employers and workers. The workers` provisions include the introduction of five days of paternity leave and penalties for discrimination. Sanctions have also been introduced to ensure compliance with the basic conditions of employment, visas and sponsorship of residences. “While the parties also wished to rely on pre-contract negotiations and post-contract conduct, it is true that the form of the words was negotiated between lawyers and that it is not possible to find in previous exchanges a common intention beyond a definitive agreement on the word form used. In addition, the behaviour of contractual contracts can often be explained on more than one basis, which does not help much in interpreting the words used. In this context, we refer to this last point, but the emphasis must be on the words used in accordance with the principle set out in Section 49, paragraph 2 of the Contracts Act 6 of 2004. We were also referred to the Court`s decision in Damac Park Towers/Youssef Issa Ward [2015] DIFC CA 006 in paragraphs 79 to 85 and to the trio of Supreme Court decisions in England. wood/Capita [2017] UKSC 24 and, in particular, the construction approach described in paragraphs 8 to 15 with the iterative process and the balancing of textual and contextual approach, referring to business objectives and common sense construction.

We accept that these principles are being applied. The proposed consultation allowed an employer to waive notice and pay wages in lieu of notice. This was introduced into the new law; It appears, however, that the payment of wages instead of termination is only permitted if they are agreed under a transaction contract. Unlike the old DIFC Labour Act, the new DIFC Labour Act explicitly recognizes the concept of secondment. It requires employers to provide their MPs with a valid DIFC detachment card allowing the Member to work in the DIFC for up to 12 months (longer periods may be authorized on an exceptional basis by the DIFC authority). These agreements will be useful both to international companies that transfer staff from outside the United Arab Emirates to DIFC and to groups within the United Arab Emirates that short-term transfer employees of other DESE Group companies to a DIFC unit.