MOHRE clarifies grace period for emiratisation compliance

The Ministry of Human Resources and Emiratisation (MoHRE) has clarified that in the event of a sudden resignation by a UAE national, leading to a drop in the Emiratisation rate within any private sector establishment, penalties will not be imposed immediately. Instead, a grace period of two months is granted to recruit a replacement UAE national. Should the establishment fail to do so within this timeframe, financial contributions (as per applicable regulations) will be levied accordingly.

The Ministry also explained that if an establishment terminates the employment of a UAE national for valid reasons—such as disciplinary violations, absenteeism, or similar causes—it will not be subject to immediate penalties. A two-month grace period will similarly apply to appoint a replacement national, after which contributions will be calculated in case of non-compliance. This same grace period also applies in cases where a national is hired at the beginning of the year but does not complete the full year of employment.

Employers and establishments can access detailed information regarding the Emiratisation requirement of hiring UAE nationals to comprise 2% of the workforce. The official decision can be downloaded from the Ministry’s website (www.mohre.gov.ae), accessed via the Ministry’s social media channels, or by contacting the call centre (600590000). Establishment representatives are also encouraged to attend the periodic workshops held by the Ministry, which explain updates and implementation mechanisms of the Emiratisation policy.

Economic sectors and establishments are assessed based on job types, working environment, geographical location, nature of economic growth, and nationalisation priorities. The first phase of the Emiratisation strategy covers the following targeted sectors: Information and Communications; Financial and Insurance Activities; Real Estate; Professional, Scientific and Technical Activities; Administrative and Support Services; Education; Human Health and Social Work Activities; Arts and Entertainment; Mining and Quarrying; Manufacturing; Construction; Wholesale and Retail Trade; Transportation and Storage; and Accommodation and Hospitality Services, including certain specified sub-sectors. The Ministry indicated that the list of targeted activities is reviewed and updated periodically based on nationalisation priorities within the private sector.

9 circumstances for termination of employment contracts in the private sector

MoHRE also highlighted that there are nine legally defined instances under which an employment contract in the private sector may be terminated, as stipulated in Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations and its amendments.

These instances include: mutual written agreement between both parties; expiry of the contract term without renewal or extension; or unilateral termination by either party, provided that legal requirements and the agreed notice period are observed.

Additionally, a contract may be terminated upon the death of the employer if the contract is tied to the employer’s personal role, or in the event of the employee’s death or permanent total disability, supported by certification from a recognised medical authority.

The Ministry noted that a worker receiving a custodial sentence of at least three months constitutes a legal ground for termination. Furthermore, contracts may be terminated if the establishment is permanently closed in accordance with UAE legislation, or in the event of the employer’s bankruptcy, insolvency, or if the business faces exceptional economic circumstances that prevent its continuation—subject to compliance with the provisions outlined in the Executive Regulations and relevant legislation.

Finally, termination is also permitted if an employee fails to meet the criteria for renewal of their work permit for reasons beyond the employer’s control. This reflects the Ministry’s commitment to regulating labour relations in a manner that ensures the rights of both parties and promotes a stable and balanced working environment within the UAE labour market.