Resignation In Lieu Of Termination Letter for United Arab Emirates

Resignation In Lieu Of Termination Letter Template for United Arab Emirates

A formal document used in the United Arab Emirates that facilitates an employee's voluntary resignation as an alternative to termination, structured in accordance with UAE Federal Decree-Law No. 33 of 2021 (UAE Labor Law). This document serves as a mutual agreement between employer and employee, outlining the terms of separation, including the effective date, financial settlements, and ongoing obligations. It provides a more dignified exit option for the employee while offering legal protection for both parties under UAE employment law, ensuring compliance with local labor regulations regarding employment termination and settlement of benefits.

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What is a Resignation In Lieu Of Termination Letter?

The Resignation In Lieu Of Termination Letter is a crucial document used in UAE employment contexts when both employer and employee agree to characterize the end of employment as a resignation rather than a termination. This approach, governed by UAE Federal Decree-Law No. 33 of 2021, often provides advantages for both parties: it helps maintain the employee's professional reputation and future employment prospects while giving the employer a cleaner separation process with reduced risk of legal disputes. The document typically addresses key elements including final settlements, end of service benefits, notice period arrangements, and ongoing obligations such as confidentiality and non-compete clauses where applicable. It must be carefully drafted to ensure compliance with UAE labor laws while protecting both parties' interests and maintaining professional relationships.

What sections should be included in a Resignation In Lieu Of Termination Letter?

1. Letter Header: Company letterhead, date, and reference number

2. Addressing: Employee's full name, position, and employee ID number

3. Subject Line: Clear indication that this is a resignation in lieu of termination agreement

4. Opening Statement: Reference to prior discussions and mutual agreement regarding the resignation

5. Effective Date: Clear statement of the last working day and effective date of resignation

6. Terms of Separation: Details of the agreed-upon separation terms, including notice period handling

7. Financial Settlement: Outline of final settlement including salary, end of service benefits, and other entitlements

8. Company Property: Statement regarding return of company property and documentation

9. Confidentiality: Reminder of ongoing confidentiality obligations

10. Full and Final Settlement: Confirmation that this represents full and final settlement of all claims

11. Acknowledgment: Space for both parties to acknowledge and accept the terms

12. Signature Block: Designated spaces for signatures of both employer and employee with dates

What sections are optional to include in a Resignation In Lieu Of Termination Letter?

1. Non-Disparagement Clause: Optional clause requiring both parties to refrain from making negative statements about each other - used in sensitive situations

2. Reference Provision: Details about the provision of employment references - included when agreed upon as part of the resignation terms

3. Outstanding Leave: Section addressing unused annual leave balance - included when there is remaining leave to be settled

4. Non-Compete Reminder: Reference to existing non-compete obligations - included if the original employment contract contained such provisions

5. Medical Insurance Extension: Details of any agreed extension of medical insurance coverage - included if this benefit is being provided

6. Visa Status: Information regarding visa cancellation process and timeline - included for expatriate employees

What schedules should be included in a Resignation In Lieu Of Termination Letter?

1. Final Settlement Calculation: Detailed breakdown of all financial entitlements and deductions

2. Company Property Checklist: List of company assets to be returned before final clearance

3. Clearance Form: Standard company clearance form listing all departments that need to provide clearance

4. Benefits Summary: Summary of any benefits that will continue or cease upon resignation date

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

Termination Letter

Cost

Free to use
Relevant Industries

Banking & Financial Services

Technology

Healthcare

Construction

Real Estate

Retail

Manufacturing

Professional Services

Education

Hospitality

Energy

Telecommunications

Media & Entertainment

Transportation & Logistics

Government & Public Sector

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Compliance

Risk Management

Corporate Communications

Employee Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Department Manager

Senior Manager

Project Manager

Account Manager

Software Engineer

Sales Executive

Marketing Manager

Operations Manager

HR Manager

Financial Analyst

Business Development Manager

Administrative Assistant

Technical Specialist

Customer Service Representative

Regional Director

Branch Manager

Executive Assistant

Research Analyst

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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