Why flexible employment laws matter more than ever

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement


Why flexible employment laws matter more than ever

Sponsored by

2025SWTenet.png

SW Tenet review why flexible employment laws matter more than ever

When the UAE updated the Labour Law in 2022, the remote working model was transformed from a temporary crisis response into a permanent and legally protected employment model. 

However, the relevance of this legislation goes beyond flexibility. The Ministry of Human Resources and Emiratisation (MOHRE) has the power to issue immediate and mandatory remote work circulars to protect public safety during unforeseen circumstances, such as extreme weather events or regional disruptions. In 2026 this authority has already been exercised.

As these circumstances are hard to predict, employers should timely ensure that any arrangements regarding remote work are carefully reviewed for compliance with applicable labour regulations. It is crucial that companies comply with a properly structured employment framework that reflects how work is actually performed in practice. 

The current legislative framework expressly recognises “Remote work” as a model where work is performed wholly or partially outside the workplace and the connection between worker and employer is electronic, and subsequently introduces the Remote employment contract as a casual model a worker may be employed under. 

As these provisions form part of federal legislation, their application is not restricted to mainland businesses. Companies across the UAE should ensure that they are not missing the stipulated requirements. It should also be noted that financial free zones such as the DIFC and ADGM have their own employment-related framework.

For companies it is important to set up and maintain correct and comprehensive:

(1)     Contractual Requirements: Verbal agreements are legally invalid. It is required to sign a written remote work contract or addendum.  These documents need to include the agreed location of the employee and working hours. 

(2)     Internal HR Policies: although strictly mandatory for companies with more than 50 employees, these documents could be important for all employers to define which roles are eligible for hybrid or full remote work and to set up communication protocols and other necessary workflow provisions

(3)     Equipment and financial requirements such as data and IT provision, expense reimbursement policies. Whether the expanded regulation in this sphere is required depends on the business of the employer and the role of the employees. 

(4)     Confidentiality Agreements and IT Security and Data Protection Policies: these may include NDA provisions for remote employees, network restrictions, company device control rules, non-competition obligations.

When policies and internal rules have not been established or don’t reflect actual processes, the legal risk for employers can arise gradually. 

Under the labour legislation, general violations of labour resolutions carry administrative fines for companies from AED 5,000 to AED 1,000,000. 

For employers, the real question is no longer whether remote work is being used. A better question is whether it has been documented, governed, and implemented in a way that can withstand scrutiny.  

Companies that treat remote work appropriately from a legal and governance perspective will be in a stronger position, not only from a compliance standpoint, but also in terms of preserving operational control, accountability, and business continuity. 

We recommend that companies review their internal policies regulating remote work to ensure that they are aligned not only with legal requirements, but also with the actual nature of employee relationships.

SW Tenet has extensive experience in advising on employee-related services in the UAE. We can assist you with the following:

·       elaborating labour policies and bonus systems

·       wage benchmarking studies

·       training and advising on issues related to relocating employees from different jurisdictions

·       advising on tax implications for a firm and its employees in the context of international and remote work

·       assistance in obtaining visas / Emirates ID, registering in digital compliance systems / applications, WPS set-ups

more across site & shared bottom lb ros

More from across our site

Clients care more about considered counsel than rapid media-friendly soundbites, says Matthew Gilleard, associate director at Infinite
It was also a memorable night for Galicia, KPMG, Skadden and Pinheiro Neto, all of which scooped major awards at a gala ceremony in New York
The former Deloitte UK CEO earned a 45% raise in a year when 1,000 staff reportedly lost their jobs – and the pay gap is only getting bigger
In a seminal development for big law, the 95-year-old firm is set to cease operations after a series of high-profile partner departures
UK Chancellor John Healey extended a VAT cut, suspended tariffs, increased a bank surcharge and vowed to increase funding for HMRC
Kristine Riisberg warned that TP decisions can determine top-up tax exposure under pillar two, while global consensus over the rules remains unsettled
Both Germany’s NIS2 and the EU AI Act now determine whether a tax function can meet its obligations – and both can make management personally accountable
Originators, loan purchasers and securitisation vehicles may need to revisit servicing agreements and pricing after a key judgment narrowed the VAT credit management exemption
Opening doors for existing talent within Baker McKenzie and a desire for enhanced legal capabilities informed Ricardo Perera’s switch from KPMG
Boaz Goren’s move to the upstart PE-backed firm takes the number of senior UK tax professionals who have left EY this year to 13
Gift this article