DIFC Courts Employment Claims - Access to Justice Practice Direction

DIFC Courts Issue New Practice Direction on Access to Justice in Employment Disputes

The DIFC Courts have issued Practice Direction 1 of 2025 – Access to Justice in Employment Disputes (“PD 1/2025”), which came into effect on 9 October 2025. This marks an important development in the DIFC Courts’ employment framework, introducing practical measures to enhance fairness, accessibility, and procedural efficiency in employment-related claims in the Dubai International Financial Centre (“DIFC”).

Historically, there has been a relatively low number of employment claims in the DIFC Court of First Instance (the “CFI”). Key barriers for employees have included:

• The risk (or perception) of reputational damage for employees who issue claims against their previous DIFC employer. Hearings in the CFI may be shown on YouTube.com and the publication of judgments allowed a future employer to see the details of the dispute.
• The risk of an adverse costs order if the employee was unsuccessful in the claim. The general rule was that the unsuccessful party would be ordered to pay the costs of the successful party in a CFI employment dispute. These costs can be very significant.
• For an employee of limited means, the upfront cost of the CFI Court fee of 2% of the value of the claim, could be an important consideration.

The CFI has sought to deal with these key concerns with the PD 1/2025 as explained in more detail below.

Confidentiality in employment proceedings

PD 1/2025 provides that employment proceedings before the CFI will, by default, be conducted in private. This approach recognises the reputational sensitivities inherent in employment disputes for both parties within a relatively small professional market.

At the same time, the CFI may lift confidentiality where it is in the interests of justice (for example, to ensure public accountability, prejudice to the parties or prevent abuse of process). Importantly, final judgments may be published in anonymised form, ensuring that while parties’ identities are protected, the wider legal community continues to benefit from the development of employment case law and judicial reasoning.

Each party bears their own costs

Employment disputes often involve an imbalance of resources between employers and employees, particularly when it comes to legal representation and the ability to bear litigation costs. A significant reform introduced by PD 1/2025 is the presumption that each party bears its own legal costs in employment disputes before the CFI.

This new general rule aims to prevent cost risk from becoming a barrier to justice, and to discourage abuse of process rather than deter legitimate claims. This also creates a more balanced environment in which both employers and employees can pursue or defend claims without the disproportionate threat of cost exposure. The CFI still retains discretion to issue an adverse costs order, particularly where a party has acted unreasonably, vexatiously, or in bad faith.

Enhancing access to justice

PD 1/2025 empowers the DIFC Courts’ Registrar to waive, reduce, or allow instalment payment of court fees in employment claims. This discretion enables the CFI to consider the claimant’s financial means, the merits and complexity of the case, and the overall interests of justice. It reflects an understanding that financial constraints should not prevent individuals from pursuing legitimate claims, and that proportionality should guide access to the judicial process.

A step toward a more accessible DIFC Employment Framework

PD 1/2025 represents a thoughtful evolution of the DIFC Courts’ employment dispute process. By addressing issues of privacy, cost exposure, and affordability, DD 1/2025 strengthens the DIFC Courts’ commitment to fairness and proportionality.

Our Employment team has extensive experience advising on DIFC employment law and related developments, including DIFC Court employment disputes. If you would like to have a chat about how PD 1/2025 may affect you, feel free to reach out.