Morgan Lewis recently hosted the latest session in its Navigating Employment Law in the Middle East webinar series, focusing on the legal framework governing termination of employment in the Abu Dhabi Global Market (ADGM).
Shifting Sands of Labor Law
YOUR SOURCE FOR MIDDLE EAST HR AND EMPLOYMENT LAW UPDATES
As temperatures across the Gulf sharply rise each summer, Gulf Cooperation Council (GCC) governments reintroduce the annual “midday sun” or “midday work ban” rules designed to protect outdoor workers from extreme heat exposure. In the United Arab Emirates (UAE), the annual midday break comes into force on 15 June and remains one of the region’s best-known seasonal labour protections.
The UAE Ministry of Human Resources and Emiratization has introduced a new Ministerial Resolution No. 340 of 2026, which significantly reforms the Wage Protection System (WPS) for private sector employers, effective June 1, 2026. The Resolution introduces a unified salary payment deadline requiring wages to be paid on the first day of each Gregorian month, and raises the WPS compliance threshold from 80% to 85%.
A recent decision of the Abu Dhabi Global Market Court of First Instance provides useful guidance on how employment disputes may be treated when an employment contract contains an arbitration clause. In Mathonnet v Modus Operations LLC and Ayotte v Modus Operations LLC [2025] ADGMCFI 0005, the Court of First Instance confirmed that employment claims can in principle be referred to arbitration, even where the ADGM courts would otherwise have jurisdiction over the dispute.
The ongoing geopolitical events in the Middle East are creating significant operational and workforce challenges for employers across the region. While the legal framework in jurisdictions such as the UAE, KSA, and other GCC countries has not fundamentally changed in response to the current crisis, the application of existing employment laws in a crisis context raises a number of important considerations.
The UAE Ministry of Human Resources and Emiratization (MHRE) has invited the public to provide their opinions and suggestions regarding the Alternative Savings Scheme (Savings Scheme). The public consultation aims at refining the existing framework. Comments can be provided until February 28, 2026 via https://sharik.ae/en.
Whether you are scheduling work projects, planning leave for your workforce, or simply looking forward to a long weekend, public holidays play an important role for employers in the United Arab Emirates (UAE). Back in April 2024, the UAE issued a Cabinet Decision (Cabinet Decision No. 27/2024 on Official Holidays in the State), which came into force on January 1, 2025 and sets out the applicable public holidays in the UAE.
Ramadan is anticipated to start on February 19, 2026, subject to the sighting of the new crescent moon. It is the ninth month in the Islamic lunar calendar and a period of fasting, worship, and spiritual development.
The Abu Dhabi Global Market (ADGM) Court has issued a detailed costs judgment that doubles as a practical guide for lawyers on the responsible use of artificial intelligence (AI) in litigation.
Our latest Navigating Employment Law in the Middle East webinar turned the spotlight back on the Abu Dhabi Global Market (ADGM) and the essential legal obligations employers need to understand when operating there.