Access to Justice in DIFC Employment Disputes – What Employees and Employers Need to Know

Access to Justice in DIFC Employment Disputes – What Employees and Employers Need to Know

A Progressive Step by the DIFC Courts

The Dubai International Financial Centre (DIFC) Courts have introduced Practice Direction No. 1 of 2025 – Access to Justice in Employment Disputes (PD 1/2025).

This new direction, effective 9 October 2025, is a significant reform aimed at making employment litigation in the DIFC more accessible, affordable, and confidential.

As a practitioner who regularly represents both employees and corporates before the DIFC Courts, I believe PD 1/2025 marks a transformative shift toward a fairer, more inclusive justice system for workplace disputes in Dubai’s financial hub.

1. What PD 1/2025 Means

PD 1/2025 applies to all employment claims before the DIFC Court of First Instance (CFI).

Its purpose is to ensure that parties to employment disputes can access justice through a proportionate, fair, and efficient procedural framework—a welcome development for individuals and companies alike.

2. Relief from Court Fees: Enhancing Access to Justice

One of the most impactful aspects of PD 1/2025 is the Registrar’s discretion to waive, reduce, or cap filing fees for employment cases. This may be granted where:

• The claimant’s financial means justify relief;
• The complexity or merits of the case warrant proportionality; or
• It serves the interests of justice.

The Registrar may also allow payment by instalments if a party demonstrates genuine financial hardship.

In practical terms: employees who were previously deterred by the cost of filing claims in the DIFC Courts can now pursue valid grievances without financial strain. This includes disputes over unpaid salaries, bonuses, end-of-service benefits, or wrongful termination.

3. Cost Rule: Each Party Bears Its Own Legal Costs

PD 1/2025 establishes that, as a general rule, each party shall bear its own legal costs in employment disputes. This is a departure from the conventional “loser pays” approach and significantly reduces litigation risk—particularly for employees or small employers.

However, the Court may still make adverse costs orders if a party has acted vexatiously, unreasonably, or in bad faith. Any such order must be proportionate and supported by reasons.

This framework encourages both sides to litigate responsibly, while promoting fair access to justice without fear of punitive cost exposure.

4. Confidentiality as the Default Rule

Under PD 1/2025, all employment proceedings before the CFI are private by default. This means hearings and filings are not open to the public unless the Court determines otherwise in the interests of justice—for example:

• To ensure public accountability;
• To prevent prejudice to third parties; or
• To stop abuse of process.

Final judgments may be published in anonymised form, protecting both employers and employees from unnecessary reputational exposure.

For senior executives, regulated entities, and multinational employers, this confidentiality rule provides vital privacy and reputational protection during sensitive disputes.

5. A Modern Approach to Workplace Justice

PD 1/2025 reflects the DIFC Courts’ commitment to aligning with international best practices in employment litigation. It balances efficiency, fairness, and confidentiality while reducing procedural barriers that often discourage legitimate claims.

For employees, it opens the door to a fairer route to recovery. For employers, it encourages efficient, proportionate dispute resolution within a respected common-law framework.

6. How I Can Help

Me and my team regularly act in employment claims before the DIFC Courts, advising on:

• Unfair dismissal, discrimination, and unpaid remuneration claims;
• Employment contract interpretation and termination disputes;
• Settlement negotiations and mediation;
• Applications for fee waivers, reductions, or payment instalments; and
• Defence and risk-mitigation strategies for employers.

Every case demands a tailored strategy—especially where jurisdiction, confidentiality, and cost considerations are critical.

7. Seeking Legal Advice Early

If you are an employee exploring your options to file an employment claim in the DIFC Courts, or an employer seeking to defend one, it is crucial to obtain legal advice at an early stage.

Early engagement allows us to assess jurisdiction, calculate potential exposure, and prepare the right procedural strategy under the new PD 1/2025 framework.