Abu Dhabi's International Financial Centre (ADGM) has revealed groundbreaking changes in employment regulations, set to take effect from April 1, 2025.
The new guidelines introduce expanded remote working options, offering businesses greater flexibility in how they hire and manage employees, while ensuring employee rights are protected.
The key amendments, laid out by the ADGM Registration Authority (RA), aim to modernise and adapt to global changes in work practices, reflecting an increasing shift towards flexible employment models. In particular, the revised regulations broaden the definition of ‘employee’, making it easier for companies to hire remote workers.
This move aligns with the UAE government's vision of making remote work a permanent fixture in the country’s economic landscape.
Abu Dhabi remote work rules
The new regulations go beyond simply introducing remote work policies. They tackle various ambiguities in previous legislation, offering more clarity on employee entitlements, including those for part-time employees. Additionally, ADGM’s updated rules bring more transparency regarding the processes of obtaining and cancelling work permits and visas for remote workers. The clarity is designed to help both employers and employees navigate legal obligations with greater ease.
"These changes reflect a deep commitment to innovation and business growth, while ensuring fair and stable conditions for both employers and employees," said Hamad Sayah Al Mazrouei, CEO of the ADGM Registration Authority.
The new regulations are not just a response to emerging trends but also a proactive move to keep the UAE competitive in the global workforce market.
Remote work in UAE
With the UAE striving to become a hub for flexible working arrangements, the 2025 reforms are part of a wider trend observed across the region. The UAE government has recognised that remote work, in its hybrid or fully remote forms, is key to improving workforce productivity, inclusivity, and overall well-being.
Omar Sultan Al Olama, UAE’s Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, emphasised the importance of the UAE's evolving remote work policies, which he believes give the country a significant competitive edge. A whitepaper released by his office highlighted that reducing commuting time leads to higher productivity. Furthermore, remote working can attract a broader talent pool, including women, caregivers, and individuals with specialised skills, who may not have been available if physical office presence were mandatory.
Research shows that 57 percent of companies worldwide are planning to increase remote work options to combat talent shortages, with many already offering hybrid or flexible models to accommodate diverse needs. According to YouGov, 46 percent of the UAE workforce currently engages in remote work to some extent, placing the nation fourth in the global Digital Nomad Visa Index.
Employers’ concerns
These changes are seen as vital for businesses and employees alike, especially as the workplace continues to evolve. The new regulations are expected to enhance the UAE’s attractiveness as a destination for global talent, further cementing its position as a leader in technological and workforce innovation.
However, while the benefits of remote work are clear, some employers remain cautious about fully embracing the shift. There are concerns over monitoring productivity and maintaining company culture in a remote or hybrid environment. To address these challenges, the UAE government has suggested that remote work policies should be governed by written contracts and clear rules, with the possibility of inspections to ensure compliance.
The legislative changes aim to strike a balance between flexibility and accountability, allowing employers to enjoy the advantages of remote work while ensuring that employees continue to be protected and fairly treated under the law.