New ADGM Regulation: Temporary Work Permit Rules 2024
Employment & Incentives / UAE
Sally AljalielySenior Associate,Employment & Incentives
The Abu Dhabi Global Market (“ADGM”) has introduced the Employment Regulations (Temporary Work Permit) Rules 2024 (“TWP Rules”), which came into force on 1 September 2024 and repealed the Employment Regulations (Engaging Non-employees) Rules 2023. The TWP Rules are designed to regulate the issuance of temporary work permits for Non-Employees (as defined below) within the ADGM.
The TWP Rules apply to any ADGM Entity that engages or intends to engage a Non-Employee for a period of at least 30 days in any 12-month rolling period. Key terms defined in the TWP Rules include:
ADGM Entity: A licensed person as defined in the Commercial Licensing Regulations 2015 or the Abu Dhabi Global Market as governed by Abu Dhabi Law No. 4 of 2013, as amended.
Non-Employee: A person performing work or providing services for an ADGM Entity, or through a third party engaged by such an entity, in circumstances where the relationship between the person performing the work
or providing the services and the ADGM Entity is not that of an employment relationship and therefore no contract of employment is issued to the person performing the work or providing the services;
Temporary Work Permit: A permit issued by the ADGM for a Non-Employee to work within its geographical boundaries.
The primary purpose of the TWP Rules is to supplement the Employment Regulations 2019, as amended, by setting out the conditions for the issuance of Temporary Work Permits in the ADGM. They also outline the applicable fines for non-compliance, ensuring that ADGM Entities adhere to the stipulated guidelines.
ADGM Entities engaging Non-Employees are responsible for:
Obtaining Permits: Securing the required Temporary Work Permit before the Non-Employee begins providing services.
Renewing Permits: Renewing the permit if the Non-Employee continues to provide services after the expiry of a previously issued permit.
Cancelling Permits: Cancelling the permit within one month of its expiry if the Non-Employee no longer provides services.
Paying Fees: Covering all fees related to the Temporary Work Permit and any renewals.
Before a Temporary Work Permit is issued, the ADGM Entity must provide documentary evidence (i.e. service agreement, internship agreement, secondment agreement etc.) supporting the engagement of the Non-Employee. Additionally, if the individual is not a UAE or GCC national, they must hold a valid UAE residence visa that extends beyond the requested duration of the Temporary Work Permit.
Permits can be issued for 3, 6, or 12 months, with indefinite renewals upon payment and approval.
Temporary Work Permits can be issued for periods of 3, 6, or 12 months and can be renewed indefinitely upon payment of the applicable fees and subject to the ADGM Authority’s approval. However, if the engagement is for less than 30 days in any 12-month rolling period, a Temporary Work Permit is not required.
If the Non-Employee is between 15 and 18 years of age, the ADGM Entity must ensure that the conditions of engagement are safe, reasonable, and appropriate for their age and wellbeing.
Delays in filing applications for Temporary Work Permits or their renewals will attract late filing fees in addition to the applicable fees. Similarly, delays in filing notifications of permit cancellations will also incur late filing fees.
Failure to obtain or renew a Temporary Work Permit within the specified timeframes will be considered a breach of the TWP Rules, subjecting the ADGM Entity to fines not exceeding USD $5,000. The ADGM Registrar may impose financial penalties on ADGM Entities for contraventions of relevant requirements, with fines not exceeding the amount of USD $15,000. If more than 10 fines are imposed on an ADGM Entity within a 12-month period, the entity will be liable to a fine not exceeding USD $25,000.
The TWP Rules provide a clear framework for obtaining, renewing, and cancelling Temporary Work Permits, ensuring that ADGM Entities comply with the stipulated guidelines. By outlining the responsibilities of ADGM Entities and the powers of the ADGM Registrar, the TWP Rules aim to maintain a structured and compliant working environment within the ADGM. Entities operating within the ADGM should familiarize themselves with these new rules and ensure that they adhere to the requirements to avoid penalties and ensure smooth operations.
For further information,please contact Sally Aljaliely.
Published in January 2025
