A Mutual Agreement Termination Letter is a critical document used in the United Arab Emirates when both parties to an employment contract or business agreement wish to end their relationship amicably and by mutual consent. This document is particularly important in the UAE context as it must comply with Federal Decree-Law No. 33 of 2021 and other relevant UAE labor laws. The letter typically includes essential elements such as final settlement terms, end of service benefits calculations, visa cancellation procedures (for expatriate employees), and mutual release clauses. It serves as legal evidence of the consensual termination and helps prevent future disputes by clearly documenting the agreed terms of separation. The document is commonly used during company restructuring, when employees pursue new opportunities, or when business relationships need to be concluded professionally and amicably.
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1. Letter Date and Address Block: Full address and contact details of both parties, with proper date formatting
2. Subject Line: Clear identification of the document as a Mutual Agreement Termination Letter with reference to the original agreement
3. Opening Statement: Reference to the original agreement and confirmation of mutual desire to terminate
4. Termination Date: Clear statement of when the termination becomes effective
5. Settlement of Dues: Statement of any final payments, end of service benefits, or other financial settlements
6. Company Property: Provisions for return of company property, documents, and confidential information
7. Mutual Release: Statement releasing both parties from future claims related to the terminated agreement
8. Confidentiality: Confirmation that confidentiality obligations survive termination
9. Signature Block: Space for signatures of both parties with proper authentication requirements
1. Non-Compete Confirmation: Include when the original agreement contained non-compete provisions that need to be addressed
2. Reference Letter: Include when parties agree to provide employment references
3. Visa/Immigration Status: Include for expatriate employees to address visa cancellation and immigration matters
4. Pending Projects Handover: Include when there are ongoing projects or responsibilities that need formal handover
5. Benefits Continuation: Include when there are insurance or other benefits that need to be addressed
6. Non-Disparagement: Include when parties wish to include mutual non-disparagement provisions
1. Settlement Calculation Sheet: Detailed breakdown of final settlement amounts including salary, end of service benefits, and other entitlements
2. Company Property Checklist: List of company items to be returned with acknowledgment of receipt
3. Handover Document: Details of any work responsibilities or projects being transferred
4. Clearance Form: Standard company clearance form confirming all departments have cleared the employee
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