Beyond compliance: how UAE employers should manage workforce risk in a time of regional uncertainty – Mishcon de Reya LLP
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Posted on 23 April 2026
In periods of uncertainty, employers are rarely short of information. What is often missing is clarity on what to do.
Over the past few weeks, many organisations in the UAE have found themselves asking similar questions, not about the law in isolation, but about how to respond in a way that is sensible, proportionate and sustainable.
In the UAE, those questions are rarely straightforward. Businesses are balancing obligations under the UAE Labour Law and, in many cases, the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) regimes, alongside the realities of a highly international workforce and evolving expectations around employee support.
In that context, the challenge is not simply one of compliance. It is about making decisions that hold up legally, commercially and from a people perspective.
Employers are often guided by the concept of acting reasonably. The difficulty, particularly in uncertain environments, is that “reasonable” means different things to each of us and in each situation and is rarely defined in detail. That's true here – none of the UAE Labour Law, the DIFC Employment Law and the ADGM Employment Regulations provide real clarity in that regard and there is no single prescribed response to the current situation. Instead, employers are expected to take a view and, ultimately, to be able to objectively justify it.
For most organisations, that starts with stepping back and asking:
This is not a purely legal exercise. It requires input from across the organisation, including HR, operations and leadership and, on occasion, external advisors.
What matters is not that every employer takes the same approach, but that the approach taken is considered, consistent and capable of explanation.
One of the more immediate questions for employers is how to approach workplace attendance and travel.
For some organisations, the answer will be to maintain existing arrangements, with additional monitoring and support. For others, particularly where there is perceived or actual risk, adjustments may be appropriate. The level of those adjustments will vary but might include:
In the DIFC and ADGM in particular, expectations around employee welfare and risk management might be broader than those 'onshore' and there will inevitably be additional considerations for employers with employees falling under different employment law regimes.
In practice, the focus should be less on identifying a single “correct” approach, and more on ensuring that decisions are:
Remote working is often one of the first options employers turn to, particularly where it is identified that work can be undertaken outside of the premises and the risks associated with having employees on the premises is objectively too significant. It can provide immediate flexibility, but it also raises a different set of questions.
The key issue is not whether remote working is possible. For many roles, it clearly is and that has been demonstrated for a number of years now. The question is therefore whether it is being used in a way that is controlled and sustainable.
Employers should be cautious about arrangements that evolve informally, particularly where employees are working outside the UAE. Even short-term changes can have knock-on effects, including:
In the DIFC and ADGM, the contractual framework may provide more flexibility in how these arrangements are structured. However, that flexibility does not remove the need for clarity in each individual case.
As a general principle, the more open-ended the arrangement, the greater the risk. Employers should therefore be clear from the outset on:
At some point, even where remote working is possible and, potentially, has been successfully used, employers will need to consider whether changes to working arrangements, hours or remuneration are required.
This is an area where the legal position is relatively clear, but the practical application is often more difficult. In short, across the UAE, DIFC and ADGM, changes that are detrimental to the employee will generally require express agreement (in writing). Attempting to move too quickly, or without proper engagement, can create avoidable risk.
In practice, employers should therefore think carefully about:
In many cases, the process followed will be as important as the outcome. A measured and transparent approach is far more likely to achieve buy-in, and far less likely to lead to disputes. This is important as the cost of legal spend in unnecessary disputes can significantly outweigh potential cost savings which may have been gained by implementing changes in the organisation.
Periods of uncertainty often bring financial pressure. For some businesses, that may mean looking at ways to reduce cost in the short term.
While reductions to pay or benefits may be considered, they are rarely straightforward to implement and can have longer-term consequences. It is often worth stepping back and considering whether there are alternative approaches that achieve a similar result with less disruption. For example:
No single solution will be right for every organisation. What is important is that decisions are taken with a clear understanding of both the immediate and downstream impact.
Contingency planning can feel uncomfortable, particularly where it involves considering scenarios that may never materialise. However, for employers with a significant expatriate workforce (like most employers in the UAE), it is an important part of responsible planning.
This does not necessarily mean putting in place fully developed policies for every scenario. It may instead involve:
In practice, organisations that have considered these issues in advance are better placed to respond calmly and effectively if circumstances change.
In a jurisdiction such as the UAE, workforce management cannot be separated from immigration and mobility considerations.
Even where the legal position appears manageable, practical challenges can arise. For example, where employees are temporarily outside the UAE, or where working arrangements do not align neatly with visa status. These situations require a coordinated approach. Legal, HR and operational teams should be aligned not only on what is permissible, but on what is workable in practice and not only in the short term.
Consistency is particularly important. Divergent approaches across teams or locations can create unnecessary complexity and risk as well as employee dissatisfaction.
Across all of these areas, one factor consistently shapes outcomes: how decisions are determined and communicated.
In uncertain environments, employees are often looking for reassurance as much as direction. Silence or inconsistency can quickly undermine confidence.
Employers who navigate these periods well tend to:
Leadership visibility also matters. Employees are more likely to engage constructively (irrespective of the direction taken by an employer) where they feel that decisions are being taken thoughtfully and with an understanding of their impact.
While every organisation will need to take its own view, there are a number of practical steps employers can take to bring structure to their response:
It is tempting to treat periods of instability as short-term disruptions. In practice, the approach and decisions taken during these periods can have lasting effects on workforce stability, culture and trust.
The legal frameworks in the UAE, DIFC and ADGM as well as the relevant contracts provide an important foundation. But they are only one part of a much bigger picture.
Employers who take a balanced approach combining legal compliance with practical judgment and a clear understanding of their people, are more likely to navigate the current environment successfully.
Our UAE employment team advises employers and senior executives on the full spectrum of employment law matters, from day-to-day advisory, workforce planning and strategy, to termination of employment and the enforcement of post-termination restrictions and everything between.
To find out more, please contact Natalie Jones.
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