In the early part of the year 2019, Dubai International
financial Centre Authority (DIFCA) proposed in the consultation
paper to revise the end of service gratuity (ESG) regime. ESG
regime was proposed to be replaced with
contributions-based-savings.
In February 2020, the DIFCA brought amendments to the DIFC
Employment Law Number 2 of 2019 specifically with regards to
Article 66 that governed erstwhile ESG. The DIFCA proposed
qualifying scheme which is designed and revolves around concept of
“employment money purchase scheme”, as DIFC follows
common law or English Law principles. The qualifying scheme would
be closely modelled on UK Pension Schemes 1993 that defines the
term money purchase benefits as the benefits the rate or amount of
which is calculated solely by reference to assets. Therefore, the
qualifying scheme shall make provision for:
