FREE GUIDE · FREE ZONES
Do free zones have their own employment law? Here's the actual answer
Most guidance on this stops at "it depends" — here's the specific answer.
The vast majority of UAE free zones — JAFZA, DMCC, DAFZA, and most others — follow the same federal law as mainland UAE: Federal Decree-Law No. 33 of 2021. If you work for a company registered in one of these zones, your gratuity, notice period, and termination rights are calculated exactly the same way as a mainland employee's.
The two exceptions: DIFC and ADGM
These are financial free zones with their own independent employment law, built on common law principles rather than UAE Labour Law. If your employer is registered in DIFC or ADGM:
- Your end-of-service benefit likely isn't calculated as traditional gratuity at all — DIFC uses DEWS (a funded savings scheme with employer contributions), and ADGM has adopted a similar model.
- Disputes go to the DIFC Courts or ADGM Courts, not MOHRE or the mainland labour courts.
- Non-compete clauses are assessed differently — common law courts tend to enforce them more readily than UAE Labour Law does.
THE ONE-LINE TEST
If your offer letter or contract doesn't specifically mention DIFC or ADGM, you're almost certainly under the same federal law as everyone else — regardless of which free zone your employer is registered in.
This is general guidance, not a substitute for a review of your specific contract — if you're not sure which framework applies to you, that's exactly what a contract or settlement review checks.
Working out your end-of-service numbers? Read the gratuity calculation guide.
Not sure which applies to you?
Kaoutar reviews your contract clause by clause against the framework that actually governs it — DIFC, ADGM, free zone, or mainland. Written findings in 48 hours.
Review my contract →This guide is general information, not legal advice. Last reviewed July 2026 against Federal Decree-Law No. 33 of 2021.