The Full and Final Settlement Agreement is a crucial legal document used in the United Arab Emirates to conclusively resolve disputes, claims, or employment relationships between parties. It is commonly utilized during employee departures, resolution of commercial disputes, or termination of business relationships. The agreement ensures compliance with UAE Federal Laws, including UAE Labor Law (Federal Decree-Law No. 33 of 2021) and the UAE Civil Code. This document typically includes comprehensive settlement terms, payment details, mutual releases, and waivers of all current and future claims. It provides legal protection for all parties by creating a binding resolution that prevents future litigation or claims relating to the settled matters. The agreement is particularly important in the UAE context where clear documentation of settlements is essential for legal certainty and enforcement.
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1. Parties: Identification of all parties to the agreement, including full legal names and addresses
2. Background: Context of the relationship between the parties, brief history of employment/dispute, and reason for settlement
3. Definitions: Definitions of key terms used throughout the agreement
4. Settlement Sum: Details of the settlement amount, payment method, and timing
5. Payment Terms: Specific conditions for payment, including bank details and payment schedule
6. Tax Implications: Statement regarding tax treatment of the settlement sum and responsibilities
7. Release and Waiver: Mutual release of all claims and rights related to the employment/dispute
8. Confidentiality: Obligations regarding confidentiality of the settlement terms
9. Return of Property: Requirements for returning company property and documents
10. Non-Disparagement: Mutual obligations not to make negative statements about each other
11. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes
12. Entire Agreement: Confirmation that this agreement represents the entire understanding between parties
13. Execution: Signature blocks and execution requirements
1. End of Service Benefits Calculation: Detailed calculation of EOSB when settlement includes employment termination
2. Outstanding Leave Entitlement: Calculation of any outstanding leave when settlement includes employment matters
3. Non-Competition: Post-settlement restrictions on competitive activities, if applicable
4. References: Terms regarding the provision of employment references, if relevant
5. Insurance Benefits: Provisions regarding continuation or termination of insurance benefits
6. Legal Costs: Allocation of legal costs and expenses related to the settlement
7. Surviving Obligations: Identification of obligations that continue after settlement
8. Third Party Rights: Provisions regarding rights of third parties under the settlement
1. Schedule 1 - Settlement Payment Breakdown: Detailed breakdown of all components of the settlement sum
2. Schedule 2 - List of Claims: Comprehensive list of all claims being settled
3. Schedule 3 - Company Property: Itemized list of company property to be returned
4. Schedule 4 - Employee Benefits: Details of any continuing or terminating benefits
5. Appendix A - Release Form: Standard form for final release of claims
6. Appendix B - Resignation Letter: Template resignation letter if settlement includes employment termination
Relevant legal definitions
Agreement
Applicable Law
Business Day
Claims
Company
Confidential Information
Effective Date
Employee
Employment Agreement
End of Service Benefits
Final Settlement Date
Governing Law
Gratuity
Group Companies
Intellectual Property Rights
Notice Period
Parent Company
Parties
Payment
Related Entities
Release
Settlement Sum
Settlement Payment
Subsidiaries
Term
Termination Date
UAE
Waiver
Working Day
Company Property
Dispute
Legal Proceedings
Outstanding Amounts
Personal Data
Released Claims
Representatives
Settling Parties
Tax
Terminal Benefits
Third Party
Applicable Law
Business Day
Claims
Company
Confidential Information
Effective Date
Employee
Employment Agreement
End of Service Benefits
Final Settlement Date
Governing Law
Gratuity
Group Companies
Intellectual Property Rights
Notice Period
Parent Company
Parties
Payment
Related Entities
Release
Settlement Sum
Settlement Payment
Subsidiaries
Term
Termination Date
UAE
Waiver
Working Day
Company Property
Dispute
Legal Proceedings
Outstanding Amounts
Personal Data
Released Claims
Representatives
Settling Parties
Tax
Terminal Benefits
Third Party
Clauses
Interpretation
Definitions
Settlement Payment
Payment Terms
Tax Treatment
Release of Claims
Waiver
Confidentiality
Non-Disclosure
Non-Disparagement
Return of Property
Cooperation
Further Assurance
Legal Costs
Final Settlement
Acknowledgment
Representations and Warranties
Third Party Rights
Assignment
Severability
Amendments
Notices
Force Majeure
Governing Law
Jurisdiction
Dispute Resolution
Entire Agreement
Counterparts
Surviving Obligations
No Admission of Liability
Release of Unknown Claims
Employee Benefits
End of Service Benefits
Outstanding Leave
Non-Competition
Non-Solicitation
References
Insurance
Indemnification
Compliance with Laws
Language
Time of Essence
Definitions
Settlement Payment
Payment Terms
Tax Treatment
Release of Claims
Waiver
Confidentiality
Non-Disclosure
Non-Disparagement
Return of Property
Cooperation
Further Assurance
Legal Costs
Final Settlement
Acknowledgment
Representations and Warranties
Third Party Rights
Assignment
Severability
Amendments
Notices
Force Majeure
Governing Law
Jurisdiction
Dispute Resolution
Entire Agreement
Counterparts
Surviving Obligations
No Admission of Liability
Release of Unknown Claims
Employee Benefits
End of Service Benefits
Outstanding Leave
Non-Competition
Non-Solicitation
References
Insurance
Indemnification
Compliance with Laws
Language
Time of Essence
Relevant Industries
Banking & Financial Services
Construction
Real Estate
Oil & Gas
Healthcare
Technology
Retail
Manufacturing
Professional Services
Education
Hospitality
Transportation & Logistics
Media & Entertainment
Telecommunications
Government & Public Sector
Relevant Teams
Human Resources
Legal
Finance
Compliance
Risk Management
Senior Management
Operations
Corporate Secretarial
Payroll
Employee Relations
Relevant Roles
Human Resources Manager
Legal Counsel
Chief Executive Officer
Chief Financial Officer
HR Director
Company Secretary
Operations Manager
Finance Manager
Managing Director
Department Head
Regional Manager
Compliance Officer
Risk Manager
Business Unit Head
HR Business Partner
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