VoxxArrive · Jurisdiction
Hiring & onboarding in DIFC: visas, contracts, gratuity
The Dubai International Financial Centre is a financial free zone with its own standalone employment statute - DIFC Employment Law No. 2 of 2019 (as amended) - and its own independent common-law court, the DIFC Courts, rather than MOHRE or the onshore labour courts. Its defining feature for employers is DEWS: since 1 February 2020, the traditional end-of-service gratuity has been replaced by mandatory monthly contributions into a funded Qualifying Scheme.
What's different
- Employment is governed by DIFC Employment Law No. 2 of 2019 (as amended, including DIFC Law No. 1 of 2024) - NOT Federal Decree-Law 33/2021. Disputes are heard by the DIFC Courts (an independent common-law jurisdiction), not MOHRE or the onshore labour courts.
- End of service is not a lump-sum gratuity. Under the DIFC Employee Workplace Savings (DEWS) plan, employers make mandatory monthly contributions into a Qualifying Scheme for eligible employees from day one - there is no one-year qualifying period before scheme participation, unlike the old gratuity regime.
- 2024 amendment (in force 1 March 2024): employers must make 'top-up' payments into a Qualifying Scheme for eligible UAE/GCC national employees where their GPSSA pension contribution falls short of the DEWS entitlement, provided the top-up is no less than AED 1,000 per month.
- Enforcement: failure to enrol employees or pay contributions can attract fines of up to USD 2,000 per employee, per violation.
- Work permits are issued through the DIFC (via the DIFC Government Services / GDRFA-Dubai route), and residence visas are Dubai-issued through GDRFA Dubai and ICP - DIFC does not use the MOHRE work-permit system.
Which onboarding steps this affects
This affects 25 of the 57 onboarding tasks, concentrated in the Pre-boarding, Day 1, Week 1, Month 1, Month 3+ phases. Work through them in the live demo to see the compliance-readiness score respond as each is ticked off.
Your task slice
25 of the 57 onboarding tasks apply here.
Verify MOHRE establishment card is active and labour quota is available for the role
Establishment card / labour quota confirmation
Issue MOHRE-standard job offer letter and obtain the employee's signed copy
MOHRE job offer letter (signed)
Apply for the MOHRE work permit (labour card) via Tasheel/MOHRE portal
Work permit approval
Apply for entry permit (e-visa) or initiate in-country status change
Entry permit (60-day validity)
Collect and attest pre-boarding documents (passport, photos, degree/qualification attestation)
Attested document pack
Prepare fixed-term employment contract aligned to the signed offer
Employment contract (draft)
Define working hours, overtime, and weekly rest-day terms in the contract
Employee signs the employment contract on Day 1
Signed employment contract
Collect original passport and entry permit for residence visa processing
Book and complete medical fitness test at an approved centre (communicable-disease screening)
Medical fitness certificate
Complete ICP Emirates ID biometrics (fingerprints, iris scan, photo)
Emirates ID application receipt
Submit residence visa application to GDRFA/ICP after medical and EID biometrics
Complete residence visa stamping / e-visa linking to the passport
Residence visa
Register the signed employment contract with MOHRE within the statutory deadline
MOHRE-registered labour contract
Confirm health insurance activation is linked to the residency file
Register UAE/GCC national with GPSSA (within one month of joining)
GPSSA registration
Verify residence visa and Emirates ID are fully issued (post-entry chain within 60 days)
Confirm GPSSA registration completed within one month of joining (nationals)
Update Emiratisation/Nitaqat headcount records with MOHRE (if Emirati; counts only if GPSSA + WPS)
Confirm gratuity/end-of-service accrual tracking has started in payroll
Assemble audit-ready employee compliance file (contract, visa, EID, insurance)
Employee compliance file
File original Emirates ID and residence visa copies in the personnel record
Issue confirmation-of-employment letter on passing probation
Confirmation letter
Reset and communicate post-probation notice-period terms (30-90 days)
Confirm health insurance validity aligns with residency expiry
Some figures on this page vary by jurisdiction, zone or nationality, or could not be independently confirmed from a public source at time of writing - confirm the current figure with the regulator before relying on it.
Sources
Frequently asked
Does UAE Federal Decree-Law 33/2021 apply to DIFC employees?
No. DIFC operates its own employment statute, DIFC Employment Law No. 2 of 2019 (as amended), and employment disputes are heard by the independent DIFC Courts rather than MOHRE or the onshore labour courts. The federal labour law does not govern DIFC employment relationships.
Do DIFC employers still pay end-of-service gratuity?
Not in the traditional lump-sum form. Since 1 February 2020 the DEWS scheme requires employers to make mandatory monthly contributions into a Qualifying Scheme for eligible employees, replacing the accrued gratuity for service from that date. Any gratuity accrued before enrolment is handled separately.
What changed for UAE and GCC nationals under the 2024 amendment?
From 1 March 2024, DIFC employers must top up a Qualifying Scheme for eligible UAE/GCC nationals where their GPSSA pension contribution is lower than what DEWS would have provided, with the top-up being no less than AED 1,000 per month. This closes a gap where nationals registered with GPSSA previously received no DEWS contribution.
Who issues the visa for a DIFC employee?
The DIFC company sponsors the employee, with work permits handled through DIFC Government Services and the Dubai residence visa issued via GDRFA Dubai and ICP. This is separate from the MOHRE work-permit process used for mainland employers.
What penalties apply for not enrolling staff in DEWS?
Non-compliance with enrolment or contribution obligations can lead to fines of up to USD 2,000 per employee, per violation, so payroll and onboarding processes need to capture DEWS from the employee's start date.