Abu Dhabi's financial centre to encourage remote working as it amends employment rules

ADGM lays out a set of directives to legalise and regulate the hiring of remote employees

The ADGM building in Al Maryah Island. The Employment Regulations 2024 clarifies ambiguities related to employee entitlements, including part-time employees. Ruel Pableo for The National

Abu Dhabi's financial free zone ADGM will start allowing companies operating in the financial zone to hire remote employees, enabling them to tap the global talent pool.

The move, effective from April 1, comes as ADGM amends its employment regulations, encouraging flexible working, in line with the evolving global workplace trends.

The regulations will provide greater clarity to employers and employees with respect to their rights and obligations, ADGM said on Thursday.

“These new regulations come as we continue to expand, grow and promote innovation in work systems. They will provide the necessary information to the business community while ensuring the protection and stability required for all parties,” said Hamad Al Mazrouei, chief executive of ADGM Registration Authority.

The new Employment Regulations 2024 will repeal the existing Employment Regulations of 2019, according to ADGM.

Remote work will be allowed when the employer and employee have mutually agreed that the employee can work remotely. This can be as a remote employee or as part of a hybrid working arrangement, where the employee works at the employer's premises regularly, as well as other locations approved by the employer, ADGM said.

In such instances, “the employer shall provide the employee with and maintain the technical equipment which is necessary for the employee to carry out the remote work unless the employer and employee agree otherwise”, it added.

Additionally, the regulations clarify employee entitlements, including for part-time employees. They also outline requirements for obtaining and cancelling an employee's work permit and visa as well as expand obligations and responsibilities related to discrimination and victimisation in the workplace.

Companies that offer staff hybrid working have an advantage over those that do not, a report commissioned by the UAE government found this week.

The white-paper, titled Remote Working in the UAE, concluded that “remote working is more of an opportunity than it is a threat”. The report found the argument for a policy that supports remote work was compelling, with evidence showing a hybrid model that combined working from home and the office can increase productivity.

Established in 2015, ADGM has recorded rapid growth as Abu Dhabi enhances its non-oil economy and focuses on attracting more international companies and investors.

The financial centre has been experiencing a rise in asset and fund managers, with assets under its management rising by 215 per cent annually in the third quarter of last year. The total number of operational entities within ADGM’s jurisdiction increased to 2,251 during the three months, up 31 per cent annually, reflecting strong demand from sectors like asset management, financial technology and professional services.

ADGM's growth aligns with Abu Dhabi’s broader economic diversification goals, with the emirate’s economy registering a 4.5 per cent annual growth in the third quarter of 2024, driven by sustained growth in the non-oil sector that continued to fuel the emirate's economic momentum.