The Contract Non Renewal Letter To Employee is a crucial document used in UAE employment relationships governed by Federal Decree-Law No. 33 of 2021. It is utilized when an employer decides not to renew a fixed-term employment contract and needs to formally communicate this decision to the employee. The document must be issued within the statutory notice period (30-90 days) before the contract's expiry date and should contain specific information about the end of employment relationship, final settlements, and transitional arrangements. This letter serves multiple purposes: it ensures compliance with UAE labor laws, provides clear documentation of the non-renewal decision, outlines the employee's entitlements, and helps manage the employment relationship's conclusion professionally. The document is particularly important in the UAE context, where fixed-term contracts are common and proper documentation of employment decisions is essential for both legal compliance and workplace relations.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee
2. Employee Details: Full name, employee ID, position, department, and current contract details
3. Non-Renewal Statement: Clear and unambiguous statement that the employment contract will not be renewed upon expiry
4. Contract End Date: Specific mention of the current contract's expiry date and the final working day
5. Notice Period: Confirmation of the notice period being provided (minimum 30 days as per UAE Labor Law)
6. End of Service Entitlements: Overview of gratuity, leave balance, and other final settlements as per UAE Labor Law
7. Company Property: Reminder about returning company property and maintaining confidentiality
8. Closure: Professional closing with contact information for HR department and signature block
1. Reason for Non-Renewal: Include when it's appropriate and beneficial to provide the business reason for non-renewal
2. Service Appreciation: Include when acknowledging the employee's positive contribution during their tenure
3. Reference Offer: Include when the company is willing to provide employment references
4. Handover Requirements: Include when specific handover procedures or documentation are required
5. Continuation of Benefits: Include when addressing any benefits that continue post-employment or during the notice period
6. Non-Compete Reminder: Include when the employee is bound by non-compete or non-solicitation clauses
1. End of Service Calculation Sheet: Detailed breakdown of final settlement including gratuity, leave balance, and other entitlements
2. Handover Checklist: List of company property to be returned and tasks to be completed before last working day
3. Exit Clearance Form: Standard company form for obtaining clearance from various departments
4. Benefits Summary: Summary of any continuing benefits or insurance coverage details post-employment
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Information Technology
Healthcare
Education
Construction
Real Estate
Retail
Manufacturing
Professional Services
Hospitality and Tourism
Energy and Utilities
Transportation and Logistics
Media and Entertainment
Telecommunications
Government and Public Sector
Relevant Teams
Human Resources
Legal
Compliance
Administration
Operations
Employee Relations
Personnel Management
Corporate Services
Management
Relevant Roles
HR Director
HR Manager
Legal Counsel
Compliance Officer
Department Manager
Operations Manager
HR Business Partner
Personnel Administrator
Employee Relations Manager
HR Coordinator
Office Manager
Administrative Manager
General Manager
Chief Human Resources Officer
HR Operations Manager
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