Effective 9 October 2025, the Dubai International Financial Centre Courts (“DIFC Courts”) have implemented Practice Direction (“PD”) No. 1 of 2025, titled Access to Justice in Employment Disputes. This landmark initiative reinforces the DIFC Courts’ commitment to ensuring fair, efficient, and accessible resolution of disputes. By addressing procedural challenges and promoting a balanced framework, PD 1 of 2025 enhances employees’ ability to seek redress while maintaining fairness and procedural integrity for all parties. All employment claims filed before the Court of First Instance (“CFI”) on or after 9 October 2025 will be governed by this new Practice Direction.
Historically, employees in the DIFC have encountered significant barriers when seeking redress for employment-related grievances. High legal costs, complex procedural requirements, and the potential for substantial adverse cost orders have deterred many from pursuing legitimate claims. The introduction of this Practice Direction responds to these challenges by implementing measures that promote fairness and accessibility in the judicial process.
Key provisions of the Practice Direction No.1 of 2025 are:
Waiver and Reduction of Court Fees
The Registrar now possesses the discretion to waive or reduce filing fees for employment claims provided an application is made to this effect. This decision is based on factors such as the claimant’s financial means, the complexity and merits of the claim, and the interests of justice. In appropriate cases, a maximum fee cap may be imposed, and installment payments may be permitted for claimants demonstrating financial hardship.
This development is expected to provide a strong impetus for more individuals to approach the Court. In our experience, employment claims are often initiated after an employee has lost their job and is already facing financial distress. The waiver or reduction of filing fees under this framework is therefore a significant reform — it removes a major psychological and financial barrier, making justice more accessible to those who need it most.
This blog is a part of our DIFC Employment Laws: A Primer for Businesses in the DIFC Blogpost.
Adverse cost orders
The Practice Direction establishes that, in employment disputes, each party generally bears its own legal costs. However, the Court may impose an adverse costs order if a party has acted unreasonably, vexatiously, or in bad faith. Any such order must be proportionate and accompanied by reasons, ensuring transparency and fairness in the judicial process.
The DIFC Courts, being a common law jurisdiction that follows the “costs follow the event” principle, have traditionally issued costs orders that could prove onerous for employees who lost their claims many of whom had already lost their jobs and were facing financial hardship. Such orders often made it practically impossible for employees to pursue justice on an equal footing.
The introduction of the new approach, under which each party bears its own costs, represents a significant and progressive step forward. It not only reduces the financial risk for employees but also encourages both parties, including employers, to resolve employment disputes more efficiently and cost-effectively, thereby fostering a fairer and more balanced justice process within the DIFC Courts.
Employment Proceedings
before the DIFC Courts are conducted in private to protect the interests of the parties involved. The Court may lift confidentiality if necessary in the interests of justice, such as for public accountability or to prevent abuse of process. Final judgments may be published in anonymised form unless the Court determines that full publication is necessary.
As a firm that has handled multiple employment matters before the DIFC Courts, we recognize that this new development will bring fairer access to justice for employees within the DIFC. The reforms introduced under PD 1 of 2025 are expected to create a more balanced litigation environment one that empowers employees to pursue legitimate claims without fear of disproportionate costs or exposure, while maintaining procedural fairness.
Overall, the implementation of this Practice Direction underscores the DIFC’s commitment to establishing a balanced and equitable legal framework for employment disputes. By enhancing access to justice, the DIFC Courts are reinforcing their role as a progressive and employee-friendly jurisdiction. This development aligns with the broader objective of fostering a legal environment that upholds the rights of employees while maintaining the integrity and efficiency of the judicial process.
