Employment Promissory Note for United Arab Emirates

Employment Promissory Note Template for United Arab Emirates

A UAE Employment Promissory Note is a legally binding financial instrument governed by UAE Federal Law that serves as a security document between an employer and employee. This document combines elements of both employment law under UAE Federal Decree-Law No. 33 of 2021 and commercial law under UAE Federal Law No. 18 of 1993. It creates an unconditional promise by the employee to pay a specified sum to the employer, typically used to secure training costs, advance payments, or other employment-related financial obligations. The document must comply with UAE legal requirements for both promissory notes and employment documentation, including proper authentication and notarization where required.

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What is a Employment Promissory Note?

The Employment Promissory Note is commonly used in UAE business relationships where employers need to secure financial investments made in employees, such as training costs, educational sponsorships, or advance payments. This document type combines the formal requirements of a promissory note under UAE Commercial Transactions Law with specific employment-related considerations. It serves as a security instrument that creates a legally enforceable obligation for the employee to repay specified amounts under defined circumstances. The document must comply with both UAE labor laws and commercial regulations, requiring careful drafting to ensure enforceability. Typically, an Employment Promissory Note includes specific payment terms, conditions for enforcement, and clear reference to the underlying employment relationship, often requiring notarization for additional legal security.

What sections should be included in a Employment Promissory Note?

1. Title and Date: Clear identification of the document as an Employment Promissory Note and date of execution

2. Maker Details: Full legal name, Emirates ID, passport number, and address of the employee (maker of the note)

3. Payee Details: Full legal name and address of the employer (payee)

4. Promise to Pay: Unconditional promise to pay with specific amount in words and numbers

5. Payment Terms: Due date or payment schedule, place of payment, and currency

6. Employment Reference: Reference to the employment relationship and relevant employment contract

7. Consideration: Statement of consideration received in relation to employment

8. Default Provisions: Consequences of non-payment and acceleration clause

9. Governing Law: Explicit statement of UAE law governance and jurisdiction

10. Authentication: Signature block, witness provisions, and notarization requirements

What sections are optional to include in a Employment Promissory Note?

1. Security Provisions: Additional security measures such as post-dated checks or guarantees, used when enhanced security is required

2. Interest Clause: If applicable and compliant with UAE law, details of any interest charges on outstanding amounts

3. Assignment Rights: Rights of the employer to assign the promissory note, included when transferability is desired

4. Notice Provisions: Specific requirements for serving notices, included for complex payment arrangements

5. Repayment Schedule: Detailed schedule of installments if the payment is to be made in multiple parts

6. Force Majeure: Provisions for unforeseen circumstances affecting payment ability, included for long-term payment arrangements

What schedules should be included in a Employment Promissory Note?

1. Payment Schedule: Detailed breakdown of payment installments if applicable

2. Employment Contract Reference: Copy or extract of relevant employment contract terms

3. Security Documents: Copies of any additional security documents such as post-dated checks

4. Calculation Method: If the amount is based on a formula or calculation, detailed explanation of the calculation method

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Promissory Note

Cost

Free to use
Relevant Industries

Banking & Financial Services

Construction & Real Estate

Retail & Commercial

Professional Services

Healthcare

Education

Technology & IT

Manufacturing

Hospitality & Tourism

Oil & Gas

Transportation & Logistics

Relevant Teams

Human Resources

Legal

Finance

Compliance

Employee Relations

Training & Development

Payroll

Risk Management

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Compliance Officer

Finance Director

Financial Controller

HR Business Partner

Training Manager

Recruitment Manager

Employee Relations Manager

Compensation & Benefits Manager

Chief Financial Officer

Chief Human Resources Officer

Legal Director

Company Secretary

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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