Jun 09, 2025 
Business
MoHRE Grace Period: What UAE Employers Need to Know About Emirati Resignations and Terminations
MoHRE has confirmed that if a UAE national suddenly resigns or is terminated for valid reasons (such as disciplinary issues or absenteeism), companies will not be penalized immediately, even if this affects their Emiratization rate. Instead, a two-month grace period will be granted to recruit a replacement Emirati. If the company does not hire a replacement within this time, financial penalties will be imposed as per regulations.
This grace period also applies if a UAE national is hired early in the year but leaves before completing a full year of employment.
Emiratization Requirements and Support
Private sector companies can find detailed information about the Emiratization requirement which mandates that UAE nationals must make up at least 2% of a company’s workforce as mentioned on the Ministry’s website www.mohre.gov.ae. Employers are also encouraged to:
- Contact the call center at 600590000
- Follow MoHRE on social media
- Attend regular workshops for policy updates and implementation guidance
MoHRE evaluates companies based on factors like industry type, location, and nationalization priorities. The first phase of Emiratization focuses on 14 key sectors, including:
- Information and Communications
- Financial and Insurance Activities
- Real Estate
- Professional and Technical Activities
- Administrative and Support Services
- Arts and Entertainment
- Mining and Quarrying
- Transformative Industries
- Education
- Healthcare and Social Work
- Construction
- Wholesale and Retail
- Transportation and Warehousing
- Hospitality and Residency Services
This list is updated regularly to reflect changing priorities.
Legal Grounds for Termination of Employment
MoHRE also reminded employers of the nine legal reasons a private sector employment contract can be terminated under UAE labour law. These include:
- Mutual agreement between employee and employer
- Expiry of the contract term
- Legal termination with proper notice
- Death of the employer (if tied to personal role)
- Death or permanent disability of the employee
- Employee imprisonment for 3+ months
- Business closure as per UAE law
- Bankruptcy or severe financial issues
- Inability to renew work permit for reasons beyond employer control
These regulations aim to protect both employees and employers while ensuring stability in the UAE job market.
Why Choose Spectrum Auditing?
At Spectrum Auditing, we go beyond just being an auditing firm; we’re your trusted partner in navigating the ever-evolving landscape of UAE regulations. Here’s what sets us apart:
- Unparalleled Expertise: Our team consists of accredited auditors, management accountants, consultants with in-depth knowledge of UAE laws, ensuring your business remains compliant.
- Streamlined Solutions: We take a comprehensive approach, guiding you through every step of the process, from risk assessment to filing reports.
- International Recognition: Be audits or any type of compliance, we adhere to the highest standards (ISA, IAS, IFRS), providing global credibility.
- Personalized Support: We understand every business is unique. We tailor our services to address your specific needs and answer any questions you may have.
Partner with Spectrum Auditing today. Let’s focus on your success, while you focus on what you do best – running your business.
Contact us today for a consultation at +971 4 2699329 or email [email protected] to get all our queries addressed.
