The Labor Settlement Agreement is a crucial document used in the United Arab Emirates when concluding an employment relationship, whether through resignation, termination, or mutual agreement. This document, governed by UAE Federal Law No. 33 of 2021, serves as a comprehensive record of the final settlement between employer and employee, detailing all financial and non-financial aspects of the termination. It includes calculations of end-of-service benefits, outstanding salary, leave encashment, and any other entitlements or obligations. The agreement must comply with MOHRE guidelines and provides legal protection for both parties by documenting their mutual understanding and preventing future disputes. It's particularly important in the UAE context where employment relationships are strictly regulated and proper documentation is essential for visa cancellation and final settlements.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers
2. Background: Brief history of employment relationship, including start date, position, and reason for termination
3. Definitions: Key terms used in the agreement including 'Settlement Sum', 'Termination Date', 'Final Settlement', etc.
4. Employment Termination: Formal confirmation of employment termination date and circumstances
5. Settlement Payments: Detailed breakdown of all payments including salary, end-of-service gratuity, leave balance, and any other entitlements
6. Tax and Deductions: Statement regarding any applicable taxes or deductions from settlement amounts
7. Company Property: Requirements for return of company property, documents, and information
8. Confidentiality: Ongoing obligations regarding confidential information
9. Full and Final Settlement: Mutual release and waiver of claims between parties
10. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction
1. Non-Competition: Include when enforcing existing non-compete provisions from employment contract
2. References: Include when parties agree on the nature and content of employment references
3. Visa and Immigration: Include for expatriate employees requiring visa cancellation and immigration provisions
4. Medical Insurance: Include when addressing continuation or termination of medical insurance coverage
5. Outstanding Loans: Include when there are any outstanding loans or advances to be settled
6. Share Options/Benefits: Include when employee has company shares or long-term benefits to be addressed
1. Schedule 1 - Payment Calculation: Detailed calculation of all settlement amounts including basic salary, gratuity, and other benefits
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Employee Benefits Statement: Statement of all benefits and their status upon termination
4. Appendix A - Release Form: Standard release form as required by MOHRE
5. Appendix B - Service Certificate: Draft of agreed service certificate/experience letter
Relevant legal definitions
Agreement
Company
Confidential Information
Effective Date
Employee
Employment Contract
End of Service Gratuity
Final Settlement Amount
Governing Law
Leave Balance
Notice Period
Outstanding Salary
Party
Settlement Payment
Termination Date
UAE
Working Day
Basic Salary
Company Property
Release
Service Certificate
Benefits
Ministry
Jurisdiction
Claims
Company
Confidential Information
Effective Date
Employee
Employment Contract
End of Service Gratuity
Final Settlement Amount
Governing Law
Leave Balance
Notice Period
Outstanding Salary
Party
Settlement Payment
Termination Date
UAE
Working Day
Basic Salary
Company Property
Release
Service Certificate
Benefits
Ministry
Jurisdiction
Claims
Clauses
Interpretation
Employment Termination
Settlement Payments
Release and Waiver
Confidentiality
Company Property Return
Non-Competition
Non-Solicitation
References
Tax and Deductions
Full and Final Settlement
Further Assurance
Severability
Entire Agreement
Amendment
Assignment
Notices
Third Party Rights
Costs
Counterparts
Governing Law
Jurisdiction
Acknowledgment
Visa Cancellation
Data Protection
Medical Insurance
Post-Employment Obligations
Employment Termination
Settlement Payments
Release and Waiver
Confidentiality
Company Property Return
Non-Competition
Non-Solicitation
References
Tax and Deductions
Full and Final Settlement
Further Assurance
Severability
Entire Agreement
Amendment
Assignment
Notices
Third Party Rights
Costs
Counterparts
Governing Law
Jurisdiction
Acknowledgment
Visa Cancellation
Data Protection
Medical Insurance
Post-Employment Obligations
Relevant Industries
Banking and Financial Services
Real Estate and Construction
Technology and Communications
Healthcare
Education
Retail and Consumer Goods
Manufacturing
Professional Services
Energy and Utilities
Hospitality and Tourism
Transportation and Logistics
Media and Entertainment
Relevant Teams
Human Resources
Legal
Finance
Operations
Administration
Management
Compliance
Payroll
Employee Relations
Relevant Roles
Chief Executive Officer
Managing Director
General Manager
Department Head
Senior Manager
Project Manager
HR Manager
Finance Manager
Operations Manager
Sales Executive
Administrative Assistant
Technical Specialist
Customer Service Representative
Engineer
Accountant
Marketing Executive
Legal Counsel
Business Development Manager
Research Analyst
IT Professional
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