Working in ADGM: How Employment Law, Visas, and Courts Differ From Mainland and DIFC

A practical guide for employees and employers on what changes when you work inside Abu Dhabi Global Market: which employment law applies, how residence visas are sponsored, where disputes are heard, and how it all differs from the UAE mainland and from Dubai’s DIFC.

Abu Dhabi Global Market (ADGM) is an independent common-law financial free zone on Al Maryah and Al Reem islands, and working there means your employment is governed by the ADGM Employment Regulations, not the federal labour law that MOHRE enforces on the mainland. Your residence visa is sponsored through the free zone rather than through a MOHRE work permit, and any employment dispute is heard by the ADGM Courts under English common law. It is the closest thing Abu Dhabi has to Dubai’s DIFC, but with important differences, most notably that ADGM does not run a mandatory savings scheme like DIFC’s DEWS.

This guide sets out what ADGM is and why its rules differ, how its employment terms compare with the mainland and DIFC on leave, gratuity, notice, and end of service, how visas and company sponsorship work, which courts handle disputes, and where corporate tax fits. If you are weighing a role or setting up an entity, the differences below change your take-home terms and your legal protections.

What ADGM Is and Why Its Rules Are Different

ADGM is a financial free zone and an independent common-law jurisdiction. Under the Application of English Law Regulations 2015, English common law applies directly inside ADGM, which was the first jurisdiction in the region to adopt it in that form. ADGM has its own legislature, its own company registrar (the Registration Authority), its own financial regulator (the Financial Services Regulatory Authority), and its own courts. For employment purposes, the decisive point is that it sits outside the UAE federal civil-law system and outside MOHRE.

Originally confined to Al Maryah Island, ADGM’s jurisdiction was extended to Al Reem Island by UAE Cabinet Resolution No. 41 of 2023, effective 24 April 2023, and since 1 November 2023 businesses establishing a new presence on Al Reem must license through ADGM. That expansion matters because it brought a large residential and commercial district into the ADGM legal framework, so more employees now fall under ADGM rather than mainland law without necessarily realizing it. If your office address is on Al Maryah or Al Reem, check whether your employer is an ADGM-registered entity, because that determines which law governs your contract.

ADGM Employment Law vs Mainland and DIFC

ADGM employment is governed by the ADGM Employment Regulations 2019, substantially amended by the Employment Regulations 2024, which came into force on 1 April 2025. The mainland is governed by Federal Decree-Law No. 33 of 2021 and enforced by MOHRE, while Dubai’s DIFC applies its own DIFC Employment Law No. 2 of 2019. The table below compares the core entitlements. Treat the specific day counts as a guide and confirm them against the current regulations, as ADGM revised several figures in the 2024 amendments.

Item	ADGM	Mainland (MOHRE)	DIFC
Governing law	ADGM Employment Regulations (common law)	Federal Decree-Law 33 of 2021	DIFC Employment Law 2 of 2019
Annual leave	20 business days	30 calendar days	20 working days
End-of-service benefit	Gratuity (no mandatory savings scheme)	Gratuity	Mandatory DEWS contributions
Maternity leave	65 working days (per 2024 amendments)	60 days (45 full, 15 half pay)	65 working days
Paternity leave	5 working days	5 working days	5 working days
Dispute forum	ADGM Courts	MOHRE then Abu Dhabi Labour Court	DIFC Courts

Beyond the headline items, ADGM sets standard working hours at 48 per week, provides tiered paid sick leave over a 60-business-day window, and requires a minimum notice period of 30 days once probation has passed, with a shorter notice during a probation period that can run up to six months. Employers must also pay for a one-way repatriation flight at the end of employment for employees they brought in. These are broadly comparable to mainland protections in spirit, but the exact mechanics and the governing court are different. If you are comparing an ADGM offer with a mainland one, our overview of UAE labour contract types under the federal law is a useful baseline for the mainland side.

End of Service: Gratuity, and Why ADGM Has No DEWS

ADGM pays end-of-service gratuity on the same basis as the mainland, and it does not run a mandatory savings scheme like DIFC’s DEWS. An ADGM employee with at least one year of continuous service is entitled to 21 days of basic wage for each of the first five years and 30 days for each year after that, capped at two years’ total pay. This mirrors the mainland calculation and is the concept our guide to UAE end-of-service gratuity rules explains in detail.

The contrast with DIFC is the point people most often get wrong. Since 2020, DIFC has required employers to pay monthly contributions into the DIFC Employee Workplace Savings (DEWS) scheme, or an approved alternative, instead of an accrued gratuity. ADGM has no such mandatory scheme. Gratuity remains the default, and while ADGM enabled an optional end-of-service savings scheme from 1 April 2025, participation is voluntary for both employer and employee. So if you move from a DIFC employer to an ADGM one, do not assume your end-of-service benefit is being invested monthly in a fund; unless your employer has specifically opted into a qualifying scheme, it accrues as a traditional gratuity payable when you leave.

Visas and Setup: How ADGM Sponsors Your Residence

An ADGM-registered company sponsors its employees’ UAE residence visas through the free zone rather than through a MOHRE work permit. The process runs through ADGM’s government-services channels and coordinates with the federal immigration authorities to issue the entry permit, residence visa, and Emirates ID. Before any employee visa can be processed, the company needs an establishment card and an active immigration e-channel account, and the establishment card is typically valid for three years.

For the employee, the day-to-day experience resembles any UAE residence visa: entry permit, medical fitness test, Emirates ID biometrics, and visa stamping. What differs is the sponsoring layer. There is no MOHRE labour card in ADGM; the free zone issues its own work permit alongside the residence visa. This is the same structural model used by other free zones, so if you have set up in one before, the flow will feel familiar; our guide to the DMCC free zone setup, costs, and visas shows the equivalent process in a Dubai free zone. Employees relocating to the capital should still budget for the standard medical and Emirates ID steps, and be aware of the reasons an Abu Dhabi work visa can be rejected, which apply to the federal parts of the process.

Which Courts Hear an ADGM Employment Dispute

An employment dispute inside ADGM is heard by the ADGM Courts, which are independent common-law courts with a Court of First Instance and a Court of Appeal, conducting proceedings in English. The Court of First Instance has an Employment Division for claims under the Employment Regulations and a Small Claims Division that handles lower-value matters up to USD 100,000. Parties can also agree to resolve disputes through the ADGM Arbitration Centre.

This is a different route from both the mainland and DIFC. On the mainland, an employee first raises the matter with MOHRE, which attempts an amicable settlement before the case moves to the Abu Dhabi Labour Court, applying the federal labour law in Arabic. In Dubai’s DIFC, disputes go to the separate DIFC Courts. Each jurisdiction applies its own law and procedure, so the forum named in your contract is not a formality; it determines the language, the applicable law, and how quickly and predictably a claim is decided. For most employees, the common-law forum and English-language proceedings are a practical advantage, particularly in higher-value or complex disputes.

Corporate Tax and Who ADGM Suits

ADGM companies are not exempt from UAE corporate tax. The federal 9% corporate tax applies on taxable profit above AED 375,000, in force for financial years starting on or after 1 June 2023. A free-zone entity can still access a 0% rate on its qualifying income if it meets the conditions to be a Qualifying Free Zone Person, including adequate substance, staying within the de-minimis limits on non-qualifying revenue, and maintaining audited accounts and arm’s-length transfer pricing; non-qualifying income is taxed at 9%. Our explainer on UAE corporate tax for small businesses covers how the qualifying-income test works in practice.

ADGM is built for financial and professional activity: banks, asset and wealth managers, fintech firms, investment funds, holding companies, and family offices that value English common law, an independent regulator, and internationally enforceable contracts. It is less relevant for pure trading, light industrial, or retail businesses, which are usually better served by a mainland licence or an industrial free zone.

FAQ

Does UAE federal labour law apply to ADGM employees?

No. ADGM has its own Employment Regulations 2019, amended in 2024, enforced by ADGM rather than MOHRE. Employees working within ADGM fall under ADGM law, not the federal labour law that governs mainland employment. This affects leave, notice, end of service, and where disputes are heard.

What law governs ADGM?

English common law applies directly inside ADGM under the Application of English Law Regulations 2015, making it an independent common-law jurisdiction separate from the UAE federal civil-law system. ADGM has its own legislature, registrar, financial regulator, and courts.

When did ADGM expand to Al Reem Island?

ADGM’s jurisdiction was extended to Al Reem Island by UAE Cabinet Resolution No. 41 of 2023, effective 24 April 2023. Since 1 November 2023, businesses establishing a new presence on Al Reem Island must license through ADGM, bringing more employers and employees under ADGM law.

How is end-of-service gratuity calculated in ADGM?

An ADGM employee with at least one year of continuous service earns 21 days of basic wage for each of the first five years and 30 days for each year after, capped at two years’ total pay. This is the same basis as the mainland calculation.

Does ADGM have a mandatory savings scheme like DIFC’s DEWS?

No. Gratuity remains the default in ADGM, and there is no mandatory workplace savings scheme. ADGM enabled an optional end-of-service savings scheme from April 2025, but participation is voluntary. This is a key difference from DIFC, where DEWS contributions are compulsory.

How much annual leave do ADGM employees get?

ADGM provides 20 business days of annual leave per year once you have completed the qualifying period, compared with 30 calendar days under mainland UAE law. DIFC also uses a 20-working-day standard, so ADGM and DIFC are aligned on this point while the mainland is more generous.

How do ADGM employees get their residence visa?

The ADGM company sponsors the visa through the free zone, coordinating with the federal immigration authorities, rather than through a MOHRE work permit. The company must hold an establishment card and an active immigration e-channel account before any employee visa can be processed.

Where are ADGM employment disputes heard?

In the ADGM Courts, specifically the Employment Division of the Court of First Instance, or the Small Claims Division for claims up to USD 100,000, applying ADGM law in English. Parties can also agree to arbitration. Mainland disputes go to MOHRE then the Abu Dhabi Labour Court, and DIFC disputes go to the DIFC Courts.

Do ADGM companies pay UAE corporate tax?

Yes. The 9% federal corporate tax applies on taxable profit above AED 375,000. A Qualifying Free Zone Person can achieve 0% on its qualifying income if it meets the substance, de-minimis, and other conditions, but any non-qualifying income is taxed at 9%. Free-zone status does not make a company blanket tax-free.

Is ADGM better than DIFC?

Neither is universally better; they are the Abu Dhabi and Dubai versions of a common-law financial free zone. ADGM suits businesses basing themselves in the capital, and its end-of-service benefit is a traditional gratuity, while DIFC mandates DEWS savings contributions. The right choice depends on your location, sector, and how you want end-of-service benefits structured.

Official Sources

• ADGM — Jurisdiction and the direct application of English common law
• ADGM — Al Reem Island expansion of jurisdiction
• ADGM Employment Regulations 2019 (as amended 2024) — official text
• ADGM — Visa and government services (establishment card and permits)
• ADGM Courts — independent common-law courts
• UAE Federal Tax Authority — Corporate Tax and Free Zone Persons

This guide is for informational purposes only and reflects rules current as of July 2026. Employment entitlements, visa procedures, court thresholds, and tax rules change, and specific figures such as leave and notice periods depend on the current version of the ADGM Employment Regulations and your individual contract. Always confirm the position with ADGM, the relevant regulator, or a qualified legal adviser before acting.