Recent clarifications on Emiratisation compliance and quota calculations

At a glance

• The UAE Ministry of Human Resources and Emiratisation (MoHRE) has issued two important updates regarding Emiratisation compliance in the private sector.
• Employers have a two-month grace period to replace a resigned Emirati employee before Emiratisation penalties apply (effective 27 May 2025).
• Emiratis hired on temporary / project-based contracts will count toward Emiratisation quotas if they meet certain criteria (effective 2 June 2025).

The UAE MoHRE has issued two important updates regarding Emiratisation compliance in the private sector:

Grace period for Emiratisation compliance following resignation

As of 27 May 2025, MoHRE has clarified that if a UAE national resigns unexpectedly, causing a drop in an establishment’s Emiratisation rate, penalties will not be imposed immediately. Instead, the establishment will be granted a two-month grace period to recruit a replacement Emirati. If the company fails to meet the quota within this period, financial contributions will be levied in accordance with applicable regulations.

Inclusion of temporary Emirati workers in Emiratisation quotas

The MoHRE confirmed that effective from 2 June 2025, Emiratis hired on a temporary basis—such as for specific projects lasting several months—will be counted toward Emiratisation quotas, provided they are:

• registered with an approved pension fund; and
• employed under a valid work permit, regardless of their work pattern.

Additionally, for companies that transfer employees between affiliated entities, the Emiratisation quota will be calculated separately for each establishment based on the new permits issued.