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Dubai on August 31
The Dubai International Financial Center proposed adopting new amendments to some legislation related to the Employment Law, the Trust Funds Law, the Institutions Law, and the Employment Law, within the framework of enhancing levels of compatibility between the proposed legislative amendments and the best global practices followed, in addition to ensuring the application of the requirements of the Organization for Economic Cooperation and Development.
The proposed amendments aim to strengthen the powers of the Registrar of Companies to regulate the work of entities outside normal working hours.
The Dubai International Financial Center proposes to make amendments to Part Ten of the current employment law to oblige employers in the center to make “additional” payments to the job qualification plan for their eligible employees who are citizens of the Gulf Cooperation Council countries, in addition to contributions from the General Pensions and Social Security Authority.
This requires employers in the center to pay the positive difference to the job rehabilitation plan in the event that there is a shortfall between the amount to be paid in the plan if the worker is not a citizen of the Gulf Cooperation Council countries and what is paid under the system of the General Authority for Pensions and Social Security, provided that the payments do not exceed Monthly 1000 dirhams.
Additional amendments to the Employment Law include situations in which an employment rehabilitation plan is prohibited from accepting contributions from the employer – or in relation to the employee – as a result of specified penalties.
The proposed changes to the Trust Funds and Foundations Law relate to the legal jurisdiction rights of the DIFC Courts over the management of trust funds in the financial center and the exclusion of foreign courts.
The changes aim to align these laws with international best practices.
The proposed changes to the Enterprise Act also aim to expand the role of registered agents to allow them to coordinate with the Registrar of Companies to provide certain compliance functions on behalf of the enterprise (as is already permitted for corporate service providers under the Specific Companies and Family Offices Regulations).
The proposed changes to the Employment Code relate to OECD requirements regarding the retention of records following the liquidation of an enterprise and updating the definition of “confidential communications”.
The proposed amendments also include operational regulations to give the Registrar of Companies specific powers to deal with cafes and restaurants that operate until late at night, and which may disturb other tenants in the DIFC as a result of noise or other socially inappropriate behaviour.
Jack Visser, Chief Legal Officer at the DIFC, said: “The DIFC’s legal and regulatory framework is based on international standards and common law principles, and the proposed amendments will ensure that the DIFC’s laws continue to keep pace with and adopt global best practices and meet the unique needs of the region.”
He added, “In the Dubai International Financial Center, we are committed to providing an integrated regulatory environment to help financial services companies and related sectors continue to grow and develop. We are also committed to continuing to adopt a transparent framework that is in line with approved international standards.”
The Dubai International Financial Center presents the proposed regulations for a public consultation period of 30 days, noting that the deadline for submitting comments on the proposed regulations is September 29, 2023.
The proposed amendments according to the Dubai International Financial Center reflect its commitment to maintaining a transparent and robust legal and regulatory framework in line with international best practices.
