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Employers in the UAE can offer employees benefits, which are above those set out in the UAE Employment Law. To be clear, the UAE Employment Law lists the “minimum rights” for employees.

As per Article 65(1) of the Law. While employers cannot contract away from those minimum rights,

They can offer additional terms, as long as those terms do “not prejudice” the rights set out in the law, but are rather “more beneficial” to the employees, than those in the law. These additional rights can be provided for in any type of a document, be it an 1) offer letter, 2) declaration, 3) agreement, 4) or even an email. 

Notice Period for DIFC employees is governed by the DIFC Employment Law, which is a separate law, from the UAE Employment Law. 

As the DIFC Employment Law, Article 62, parties are required to provide each other with a proper notice, in the event of termination of the employment relationship.

The minimum notice period depends on the duration of employment.

• • If the employment period is less than 3 months, the notice period is 7 days.
  • If the employment is between 3 months to 5 years, the notice period is 30 days.
  • In those case where employment relationship is over 5 years, the notice period is 90 days or 3 months.

Importantly, these are the minimum notice periods.  

Parties can agree to longer periods under the DIFC Employment Law. 

The Notice Period in the UAE, under the UAE Employment Law is a minimum of 30 days. 

Importantly, this is a statutory minimum period.

Which means that, even if the employment contract does not specify a Notice Period, the law obligates employers to provide employees a minimum of 30 days-notice.

Or, if the company does not wish for the employee to serve the 30-day notice, it must compensate the employee for the value of that notice period.

Furthermore, as per the current UAE Employment Law, the maximum duration of the Notice Period is 90 days.

This is in line with the Article 43 of the UAE Employment Law, which is Law No. 33 of 2021. 

Termination of employees in the U.A.E. during their leave, whatever the nature of the leave, can only take effect after the employee returns from leave. In other words, let’s say the employee is on his/her 4-week annual leave, due to return on April 1^st.

A few days into their leave, on March 10^th, the company serves the employee with a termination notice. Giving the minimum 1-month notice. 

That termination notice only takes effect, once the employee comes back to work, or starting from April 1^st. Which means that the employee’s last working day would be April 30^th. 

This is in line with the UAE Labor Law No. 33 of 2021, and Article 35, specifically. 

Virtual Assets in the U.A.E. have been classified as fully regulated, by the U.A.E. Ministry of Economy – Anti-Money Laundering Department. 

• According to the Ministry, the U.A.E. has created a regulatory ecosystem for Virtual Assets, which:
  • Synchronises the country’s federal and local regulatory landscape and
  • Aligns 1) supervisory and 2) enforcement levers.
    
    
• The ecosystem, which is meant to be, at the same time: 1) progressive and 2) secure, is based on the comprehensive set of Guidelines, which:
  • Set out supervisory controls, to ensure: 1) market growth, on the one hand, and 2) investor protection, on the other.
  • With the objective of operating Virtual Assets, with agility, and yet, mitigating and managing risks, associated with Virtual Assets.

The Guidelines further qualify the previously passed UAE Cabinet Decision No. (111) of 2022 on Regulation of Virtual Asset Activities and Service Providers in the UAE.

• Which was drafted in collaboration with the:
  • 1) the UAE Securities and Commodities Authority, for investment purposes; and
  • 2) the Central Bank of UAE, for payment purposes,

The U.A.E.’s designation of Virtual Assets as a regulated category was announced by the Ministry of Economy-Anti-Money Laundering Department in a press release on April 18, 2023.

Muslims in the UAE, who wish to have a civil marriage, can now do so in the Abu Dhabi Civil Family Court. Which is part of the Abu Dhabi Judicial Department or ADJD. 

This service is available to all Muslims, who are not A.E. citizens.

Notably, unlike in marriages under the Sharia Law, civil marriages under ADJD do not require: 1) the guardian’s approval or 2) medical tests. The application process is the same as it is for all other couples who wish to have a civil marriage under the ADJD.

In short, the civil marriage service is 1) available through the ADJD website, 2) by logging in through the UAE Pass and 3) then, filling out the Civil Marriage Application, 4) with a copy of passport or Emirates ID. After the marriage ceremony, it is highly recommended to attest the civil marriage certificate by the UAE Ministry of Foreign Affairs (MOFA).

Civil marriage under ADJD are governed by Law No. 14 of 2021 Concerning Civil Marriages and its Effects in the Emirates of Abu Dhabi.

Corporate Tax in the U.A.E. applies 1) not only to mainland businesses, but also to 2) all of the Free Zones. This includes even specialized and independent free zones such as 1) the DIFC (or Dubai International Financial Center), 2) as well as ADGM (otherwise known as the Abu Dhabi Global Markets).  

This is so, although, these 2 Free Zones are, for the most part, independent legal jurisdictions, with their own laws and their own courts. However, for the purposes of the UAE Corporate Tax, the DIFC and ADGM are subject to the Federal Law, much the same way as other free zones are. 

Therefore, moving businesses from a free zone into the DIFC or ADGM jurisdictions, for potential tax optimization – as some businesses have considered – will be of no utility, as the laws will apply equally. 

This is in accordance with the UAE Corporate Tax Law – No. 47 of 2022 as well as Cabinet Decision No. 55 of 2023 regarding the Qualifying Income of Qualifying Free Zone Entitie,

As a reminder, the UAE Corporate Tax has come into effect as of June 1, 2023 and the rate is 9%. 

The UAE Corporate Tax, which is 9%, applies not only to mainland businesses, but also to all of the free zones, across the country.

However, qualifying free zone persons can be subject to a corporate tax rate of 0%. 

This is as long as the free zone entity meets the following criteria: 

1. The free zone person derives qualifying income; 
2. The free zone persons maintain adequate substance in the U.A.E.  Which means – conduct their core income-generating activities, maintains adequate assets, employees and expenditure, etc.
3. Or, the free zone person did not choose to subject itself to the 9% corporate tax rate; and
4. If the free zone entity is a multinational company, it must 1) adhere to the arm’s length principle and 2) maintain adequate transfer pricing standards and documentation.

This is as per Articles 18, 34, and 55 of Federal Decree-Law No. 47 of 2022 regarding Corporate Tax Law,as well as Articles 3 and 7 of Cabinet Decision No. 55 of 2023 regarding the Qualifying Income of Qualifying Free Zone Entities.