The Dubai International Financial Centre (DIFC) controls and targets a unique legal framework, which is completely different from the expansive intricacies of UAE labor laws. This training offers several types of employment permits modified for different working arrangements. Knowing these permits is essential for both employers and employees to ensure agreement and use up well the opportunities within the DIFC.  

Full-Time Employment Permit

A Full-Time Employment Permit is the standard and most used work permit in the DIFC, made for employees engaged in full-time roles with a company registered within the DIFC.  

Disambiguation: This article discusses DIFC employment laws. For ADGM labour laws, please refer to ADGM Employment Laws. For UAE Federal labour laws, please refer to UAE Federal Employment Laws.

These are provided to employees who work on a full-time basis under a standard DIFC employment contract, and it is usually for the length of the employment duration which is for 2 years and could be renewed further on. Every employee who joins with a new employer/ company would have to undergo 6 months’ probation as that is mandatory under the DIFC Employment Law.  

The employing company sponsors the employee, which includes responsibility for the employee’s visa and other related processes. For some instances, the employer through the employee could become the sponsor for the family/spouse of the employee and include all the incentives as given to the employee. Employees under the full-time permit would receive all benefits as per DIFC Employment Law, including annual leave, end-of-service gratuity, and health insurance.  

It is also important to note that the employers must comply with DIFC regulations regarding working hours as it is a standard rule that an employee cannot be allowed to work more than 48 hours and with regards to overtime, if it exceeds beyond 48 hours per week they could be eligible for a pay unless an employee is in a higher position, such as manager or if they are in termination procedures. Full-time employees are generally not allowed to work for another employer unless they obtain a No Objection Certificate (NOC) from their current employer.  

Part-Time Employment Permit

Part-Time Employment Permits are served to employees who work less than the regular full-time hours by DIFC regulations, usually ranges as 5 hours per day.  

Part time option and availability is made and designed for individuals who could possibly work for multiple employers or who do not wish to commit to full-time hours, this will also be beneficial for anyone who needs to support or help someone in their family and cannot devote completely to their job.  

In the case of Part – Time employment it is much like full-time permits, and it is linked to the employment contract plus it can be up to two years, and further be renewed if there is a continued service. Part-time employees can be sponsored by their employer, or they might already have a residency visa through a different sponsor (e.g., their spouse or parent). This permit allows for flexible working arrangements, permitting employees to manage work across different roles within the DIFC.  

In accordance with the DIFC Employment Law, part-time employment is defined as an employment arrangement where the employee’s contract specifies one or more of the following conditions: (a) working less than eight (8) hours per Work Day, inclusive of any rest, nursing, or prayer breaks; (b) working fewer than five (5) Work Days per Work Week; or (c) having terms of employment that do not constitute full-time employment. 

It is totally the employers’ duty to ensure that the part-time hours are clearly defined and are accepted within the DIFC’s guidelines. It is also to be noted that the employment benefits may be calculated based on the number of hours worked, unlike what is done during a full-time position.  

Temporary Employment Permit

Temporary Employment Permits are designed for employees who are engaged in short-term projects or assignments. This permit would be best suited for project-based work, seasonal employment, contract work, or temporary roles that do not extend beyond a few months. These permits are typically valid for the duration of the project or assignment, and it does not go past six months. The employer grants sponsorship for the temporary contract, with the permit duration matching the contract length. Temporary Employment Permit would be ideal for companies hiring employees for a specialized skill or specific work in the limited period without committing to a long-term employment contract.  

It is needful that the employers must clearly outline the scope and duration of the temporary work in the contract. Also to be noted that the temporary employees might not be entitled to the same level of benefits as full-time employees, it wholly depends on the length of employment and the specific terms of the contract.  

The leave ratio for temporary employees will vary in comparison to the regular, full-time employees and this will be decided based on a pro rata calculation, as 20 working days as paid leave for a whole year. With respect to sick leave, it would be counted as 60 days for the whole year wherein the first 10 days would be fully paid, the following 20 days half paid and the remaining 30 days unpaid.  

End of Service benefits for temporary employees would be granted if they have completed at least 1 year of service and this benefit is calculated based on the DIFC Employee Workplace Savings plan is applicable. (DEWS)  

Short-Term Secondment Permit

A Short-Term Secondment Permit is molded for employees who are temporarily seconded to a DIFC zone from another company, either within the UAE or internationally.  

It is essential to know that this is issued to employees who are seconded from a parent or affiliate company to a DIFC entity for a short duration. The permit is generally valid for up to six months, with the possibility of extension based on the agreement between the companies. The second company remains the official sponsor, but the DIFC entity manages the employees during the secondment period. This allows for expertise transfer, training, or temporary project support without permanent employment transfer.  

Regarding end-of-service benefits and gratuity, the employee continues to receive their end-of-service benefits under the original employer during the secondment period, as the employment contract remains in force with the original employer. When the secondment employee may get terminated before the agreed period and can be agreed between the original employer, host company, and the employee. The secondment requires a permit from the DIFC Authority, and the employee’s rights remain under the original employment contract and DIFC Employment Law which are protected during the secondment. This period can last from 3 to 12 months, with the necessary rights such as salary, benefits, and visa sponsorship which remain with the original employer unless decided differently. The host company is responsible for providing a safe working environment and integrating the employees into their operational framework.  

Freelance Permit

The Freelance Permit is a relatively new option in the DIFC, serving independent professionals who wish to work on a contractual basis without being tied to a single employer.  

This option is used by individuals who are keen to offer services in specific sectors that are booming and require a freelancer, such as around technology and IT. The duration for this permit is generally taken for one year, and upon the requirement it can be renewed annually. In this situation the freelancers can sponsor themselves, giving them the flexibility to work with multiple clients within the DIFC.  Being a freelancer and assisting various companies within a given period allows the freelance employees to operate independently.  The contract for freelance workers would be agreed upon in the timeframe between the employee and employer, and once the agreed contractual period is completed, it cannot be changed.  

It is key to understand that the freelancers must follow and obey all instructions that would be applicable to DIFC laws, and they must also restrict their business license within the DIFC.  

Conclusion 

The DIFC offers a variety of employment permits to provide miscellaneous working arrangements, from full-time and part-time roles to temporary assignments and freelance work. Each permit type is made to meet the requirements of both businesses and professionals, providing flexibility while aiming for proper compliance with the legislation of DIFC. Knowing these permits well is crucial for employers to effectively manage their workforce and for employees to enhance and improve their career opportunities. It is always helpful for either of the parties to seek legal advice or help for any further inquiries.