Law no. 4 of 2020 has been enacted to introduce the new Qualifying Scheme workplace savings scheme in the DIFC, replacing the current end-of-service gratuity payment regime that has been in place since the inception of the DIFC in 2004.
According to the Amendment, which will enter into effect on 1 February 2020, employers will make mandatory monthly contributions to a professionally managed and regulated savings scheme.
The DIFC Board of Directors has also issued new Employment Regulations that set out the requirements for the Qualifying Scheme. The requirements include having an oversight body that will have the right to appoint and remove the scheme operator, review its governance and fees and charges imposed on the scheme.
Employers will have until 31 March 2020 to enroll into a Qualifying Scheme. Alternatively, employers may seek a Certificate of Compliance from the DIFC Authority for an alternative Qualifying Scheme under the Regulations.