# What is DIFC?

DIFC stands for Dubai International Financial Centre.

DIFC is a Dubai financial free zone with its own employment law, DIFC Employment Law No. 2 of 2019, which applies instead of the federal UAE Labour Law.

## DIFC explained

Employers registered in DIFC are outside MOHRE's mainland regime. Employment terms, end-of-service provision, leave and termination follow DIFC Employment Law rather than Federal Decree-Law No. 33 of 2021.

The most significant practical difference is end-of-service: DIFC replaced traditional gratuity with DEWS, a funded workplace savings scheme requiring monthly employer contributions.

Groups operating both a DIFC entity and a mainland entity run two employment regimes at once, which is why single-jurisdiction HR systems tend to break at this boundary.

## How NeuralHR.AI handles DIFC

- [HR software for free zone companies](https://neuralhr.ai/en/hr-software-for-free-zone-companies)

## Related terms

- [DEWS](https://neuralhr.ai/en/hr-glossary/dews): DEWS is the funded workplace savings scheme that replaced end-of-service gratuity for most DIFC employees, requiring monthly employer contributions to a regulated trust.
- [ADGM](https://neuralhr.ai/en/hr-glossary/adgm): ADGM is an Abu Dhabi financial free zone with its own employment regulations, which apply to ADGM-registered employers instead of the federal UAE Labour Law.
- [UAE Labour Law](https://neuralhr.ai/en/hr-glossary/uae-labour-law): Federal Decree-Law No. 33 of 2021 is the UAE's private-sector employment law, governing contracts, working hours, leave, termination and end-of-service entitlements.

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Canonical page: https://neuralhr.ai/en/hr-glossary/difc
Last verified: 2026-08-01

Published by NeuralHR.AI — AI-native HR and payroll platform for the UAE, Saudi Arabia and India.