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

The Dubai International Financial Centre (DIFC) Courts have issued Practice Direction No. 1 of 2025 – Access to Justice in Employment Disputes (PD 1/2025), which came into effect on 9 October 2025.

This new framework marks a significant milestone in the evolution of the DIFC’s employment dispute system, designed to enhance fairness, privacy, and affordability for employees and employers alike.

By introducing reforms on confidentiality, legal costs, and court fees, the DIFC Courts have demonstrated their continued commitment to ensuring that employment justice within the Centre remains accessible, transparent, and balanced.

Key Barriers in DIFC Employment Disputes

Historically, employment related cases in the DIFC Court of First Instance (CFI) have been relatively few compared with other commercial claims. PD 1/2025 directly addresses several recurring concerns that previously discouraged employees from pursuing legitimate claims:

• Reputational risk: Public hearings and published judgments exposed sensitive employment matters to the wider market.
  
• Adverse cost exposure: Unsuccessful claimants risked paying the opposing party’s legal costs,  often a substantial deterrent.
  
• Court fees: The upfront 2% fee of the claim’s value posed a financial challenge for employees of limited means.
  

Confidentiality in Employment Proceedings

Under PD 1/2025, all employment hearings before the CFI will now default to private proceedings. This change acknowledges the reputational sensitivities inherent in employment disputes within a close knit professional environment.

However, the Court retains discretion to lift confidentiality when it serves the public interest, such as promoting transparency or preventing misuse of process. 

Importantly, final judgments will be published in anonymised form, preserving the parties’ identities while ensuring continued development of DIFC employment jurisprudence.

Each Party to Bear Its Own Costs

A central reform under PD 1/2025 is the presumption that each party bears its own legal costs in employment cases before the CFI.

This new principle removes one of the most significant barriers to justice, the risk of crippling cost orders against employees, and levels the playing field between employers and claimants.

The CFI nonetheless retains discretion to depart from this rule where a party has acted vexatiously, unreasonably, or in bad faith, ensuring fairness without enabling abuse of process.

Enhanced Access and Fee Flexibility

To further improve accessibility, PD 1/2025 empowers the Registrar of the DIFC Courts to:

• Waive, reduce, or allow instalment payments of court fees; and
  
• Consider the claimant’s financial means, merits, and the interests of justice when determining fee adjustments.

This flexibility ensures that legitimate claims are not discouraged purely on financial grounds, aligning with international best practices in employment dispute resolution.

A Step Toward a More Accessible Employment Framework

PD 1/2025 is a decisive move toward a modernised and inclusive employment justice framework within the DIFC. By addressing issues of privacy, cost, and access, the new direction reinforces the Court’s philosophy of proportionality and procedural fairness.

It also complements Dubai’s wider goal of enhancing its global reputation as a jurisdiction that balances judicial efficiency with employee protection and corporate confidence.

Al Kabban & Associates Commentary

The DIFC’s introduction of Practice Direction 1/2025 underscores its responsiveness to evolving labour dynamics and its ongoing effort to ensure that justice remains both fair and accessible.

At Al Kabban & Associates, our employment and litigation teams regularly advise clients on DIFC employment disputes, contractual claims, and judicial procedure before the CFI and Court of Appeal.

Our expertise spans representation of both employers and employees navigating sensitive workplace disputes and the new procedural landscape.

For more information or to schedule a consultation, contact us at +971 4 453 9090 or visit www.alkabban.com. 

You can also follow us on social media for more updates on everything law related in the UAE: @Alkabban_Law

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