The proposed legislation sets out the requirements for qualifying schemes and will allow DIFC employees to add their own savings as voluntary contributions.
Key changes include clarifying that existing DIFC employees still have a right to gratuity payments that accrued prior to the introduction of the proposed regime and employers being obliged to fund the end-of-service benefits on a monthly basis.
The consultation deadline is 18 November.
Protection and reputation
The end of service gratuity changes follow swiftly on the heels of the DIFC updating its employment and insolvency laws, as it seeks to establish itself as one of the world’s top financial jurisdictions.
The employment law changes came into effect on 28 August 2019 and include a six-month limit for bringing employment claims.
This restriction is somewhat offset by greater protection for employees against discrimination (including harassment) and victimisation.
The insolvency law came into force in June and was based on international standards to ensure business and investor confidence in the region.