ADGM settlement agreements must include independent legal advice warranty

A recent ADGM Court decision clarifies a critical compliance requirement for employment settlement agreements. Employers cannot treat a signed "full and final settlement" as a complete waiver of claims unless the agreement includes a warranty that the employee was given the opportunity to obtain independent legal advice on the terms and effect of entering into the agreement, as required by section 1(2)(d) of the ADGM Employment Regulations 2024. In the court case, the employer believed it had obtained a complete waiver, but the settlement was found ineffective because it lacked this mandatory warranty. As a result, the employee was able to pursue claims despite having signed a settlement document. The ruling underscores that settlement agreements must strictly comply with ADGM Employment Regulations to be enforceable.