Basic Separation Agreement Template for the United Arab Emirates

A Basic Separation Agreement is a legally binding document that formalizes the end of an employment relationship in the United Arab Emirates. This agreement ensures both employers and employees have clear documentation of their rights, obligations, and settlements when terminating employment under UAE Federal Law No. 33 of 2021.

When do you need this document?

You need a Basic Separation Agreement when ending employment relationships in the UAE, whether through resignation, mutual agreement, or standard termination. This document is particularly valuable when you want to ensure all parties understand their final obligations and entitlements. It's commonly used when employees resign with proper notice, during company restructuring, or when employment contracts reach their natural expiration. The agreement becomes essential if there are complex end-of-service calculations, outstanding company property to return, or confidentiality obligations to maintain after employment ends.

Key legal considerations

Your separation agreement must address several critical legal elements to be enforceable in the UAE. The final payment calculation must comply with UAE labor law, including accurate end-of-service gratuity based on the employee's length of service and final salary. You need to specify the return of all company property, including equipment, documents, and access credentials. Confidentiality and non-disclosure provisions should reference UAE Federal Law No. 31 of 2006 regarding intellectual property and trade secrets. The agreement should also address visa cancellation procedures for expatriate employees under UAE immigration law. Clear notice periods must align with Federal Law No. 33 of 2021 requirements, and any restrictive covenants must be reasonable and legally enforceable.

Legal requirements in United Arab Emirates

Under UAE Federal Law No. 33 of 2021, your separation agreement must calculate end-of-service gratuity correctly based on the employee's basic salary and years of service. For employees with unlimited contracts, gratuity equals 21 days' pay for each year of the first five years, then 30 days' pay for each subsequent year. Limited contract employees receive gratuity proportional to their contract period. You must also comply with notice period requirements, which vary based on the employee's length of service and contract type. The agreement should reference UAE Federal Decree Law No. 47 of 2023 for recent amendments affecting end-of-service calculations. For expatriate employees, you need to coordinate with UAE Federal Law No. 7 of 2019 regarding visa cancellation procedures and ensure proper handover of residence permits and labor cards.