Exit Agreement Template for the United Arab Emirates

An Exit Agreement is a comprehensive legal document that formalizes the termination of your employment relationship in the United Arab Emirates. This agreement serves as a binding contract between you and your employer, establishing clear terms for your departure while ensuring compliance with UAE Federal Law No. 33 of 2021 and related employment legislation. The document protects both parties by documenting agreed-upon separation terms, final payments, and any ongoing obligations.

When do you need this document?

You need an Exit Agreement when your employment is ending, whether through resignation, mutual agreement, or termination by your employer. This document becomes particularly crucial if you're an expatriate employee requiring visa cancellation, if you're entitled to significant end-of-service gratuity payments, or if your role involved access to confidential company information. Senior executives and employees with specialized knowledge often require detailed Exit Agreements to address non-compete clauses and intellectual property concerns. The agreement is also essential when there are disputed aspects of your termination that need resolution, or when you're receiving additional compensation beyond statutory requirements.

Key legal considerations

Your Exit Agreement must accurately calculate your end-of-service gratuity according to UAE law, which varies based on your length of service and salary structure. The document should clearly outline the return of company property, including laptops, mobile phones, access cards, and any confidential documents or data. Confidentiality clauses must be reasonable and enforceable under UAE law, protecting legitimate business interests without unreasonably restricting your future employment opportunities. If you're subject to non-compete restrictions, these must comply with UAE Commercial Companies Law and cannot exceed reasonable time periods or geographical limitations. The agreement should also address any outstanding loan balances, unused leave entitlements, and commission payments to avoid future disputes.

Legal requirements in United Arab Emirates

Under UAE Federal Law No. 33 of 2021, your Exit Agreement must comply with specific notice periods and termination procedures depending on whether you're on a limited or unlimited contract. The document must accurately reflect your entitlement to end-of-service gratuity, calculated as 21 days' salary for each year of service for the first five years, and 30 days' salary for each subsequent year for unlimited contracts. For expatriate employees, the agreement must coordinate with visa cancellation requirements under UAE Immigration Law, ensuring proper documentation for your legal status transition. The agreement should be witnessed and may require notarization depending on its complexity and the seniority of your position. All calculations must use your basic salary as defined under UAE labor law, excluding housing and transportation allowances unless specifically agreed otherwise.