Labour & Employment
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Employment law in the UAE is not the same as anywhere else. The rules differ depending on whether your business operates on mainland UAE, in the DIFC, in ADGM, or in a free zone. They differ for UAE nationals versus expatriate employees. And they carry real consequences when they are not followed correctly.
We advise businesses on the full range of employment matters in the UAE, from putting the right contracts and policies in place at the start, to managing the employment aspects of M&A transactions, to handling restructuring and redundancy when the business changes.
The employment aspects of M&A transactions are often more complex than the corporate pieces, and they are frequently underestimated. In a share purchase, existing employment contracts transfer with the business. In an asset purchase, the position is different and requires careful analysis. Change-of-control provisions, end of service gratuity obligations, Emiratisation requirements, and the treatment of employees across multiple jurisdictions all need to be considered as part of the deal.
We advise on the employment aspects of transactions from due diligence through to post-closing integration.
ESOPs are an increasingly common tool for attracting and retaining talent in the UAE. Getting them right requires careful thought about the structure of the scheme, the tax implications for employees in different jurisdictions, the vesting schedule, and the treatment of options on exit or change of control. We advise on ESOP design, documentation, and implementation across UAE, DIFC, and ADGM structures.
Emiratisation requirements apply to businesses operating in certain sectors and above certain size thresholds on UAE mainland. The rules have been evolving, and non-compliance carries financial penalties. We advise businesses on their obligations, the applicable quotas, and how to structure their workforce to comply.
