On 9 October 2025, the DIFC Courts issued Practice Direction No. 1 of 2025 – Access to Justice in Employment Disputes (PD 1/2025) pursuant to Resolution No. 3 of 2025. This new direction aims to enhance access to justice in employment-related disputes by establishing a proportionate, fair, and efficient procedural framework for all employment claims brought before the Court of First Instance (CFI).
The Practice Direction recognizes that employment disputes often involve individuals with limited financial means and aims to balance fairness, cost-effectiveness, and transparency in the proceedings.
1. Waiver and Reduction of Court Fees
A central feature of PD 1/2025 is its fee flexibility mechanism, designed to prevent financial hardship from hindering access to justice:
- The Registrar has the discretion to waive or reduce filing fees for employment claims. In exercising this discretion, the Registrar will consider: the claimant’s financial means; the complexity and merits of the case; and the interests of justice.
- The Registrar may also impose a maximum fee cap to ensure proportionality between the claim value and court costs.
- Claimants facing financial hardship may be allowed to pay fees by instalment, further improving accessibility for individuals with limited resources.
This structured discretion reinforces the Courts’ commitment to removing cost barriers and ensuring equitable access to legal recourse.
2. Adverse Costs Orders
To promote fairness and proportionality in employment litigation, PD 1/2025 refines the traditional cost regime before the DIFC Courts. As a general rule, each party in employment disputes will now bear its own legal costs. However, the Court retains discretion to depart from this rule and make adverse costs orders in limited circumstances. For example, where a party has acted unreasonably, pursued the proceedings in bad faith, or where such an order is necessary in the interests of justice. Any such decision must remain proportionate and supported by written reasons.
This revised framework discourages abusive litigation conduct while maintaining predictability and accessibility for parties with limited financial means. It is also worth noting that, unlike in employment matters, claims filed before the Court of First Instance generally follow the standard rule that the unsuccessful party bears the legal costs of the successful party.
3. Confidentiality of Employment Proceedings
Acknowledging the inherently sensitive nature of employment disputes, PD 1/2025 makes confidentiality the default position for all employment cases before the Court of First Instance. Hearings will generally be held in private unless the Court decides that openness is required. The Court may, either on its own initiative or upon application, lift confidentiality where it considers this necessary in the interests of justice. For instance, to ensure public accountability, prevent prejudice to third parties, or avoid an abuse of process.
Final judgments may be published in an anonymised form unless the Court considers that full publication is justified. This framework seeks to protect the privacy of individuals and companies while still upholding transparency and public trust in the judicial process.
Impact and Practical Significance of PD 1/2025
PD 1/2025 marks a significant procedural advancement within the DIFC Courts, particularly in the area of employment law. By addressing key aspects of cost, procedure, and confidentiality, it reinforces fairness, proportionality, and accessibility in the resolution of employment disputes.
The option to reduce or waive filing fees is particularly meaningful, as many employment disputes arise from situations of financial strain following termination or non-payment of dues. That said, appropriate safeguards are needed to prevent misuse or a rise in unfounded claims.
Requiring each party to bear its own legal costs adds clarity and consistency to the cost framework of employment disputes, reducing uncertainty especially for employees seeking redress. Meanwhile, the anonymization of final judgments appropriately balances privacy concerns with the principle of open justice.
PD 1/2025 marks a progressive move that brings the DIFC Courts’ employment dispute framework closer to global best practices.
For any inquiries or to explore how Practice Direction No. 1 of 2025 – Access to Justice in Employment Disputes may affect your litigation or employment disputes please reach out to our dispute resolution team, Mohammed Alsuwaidi at alsuwaidi@alsuwaidi.ae or Merline Dsouza at merline@alsuwaidi.ae