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Termination Addendum

Termination Addendum Template for United Arab Emirates

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Key Requirements PROMPT example:

Termination Addendum

I need a Termination Addendum under UAE law for a senior executive's mutual separation, including comprehensive non-compete provisions and a three-month transition period ending March 31, 2025.

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Document background
The Termination Addendum is a critical document used when both employer and employee agree to end their employment relationship in the United Arab Emirates. It serves as an amendment to the original employment contract and must comply with UAE Federal Decree-Law No. 33 of 2021 and related employment regulations. This document is particularly important in the UAE context where employment relationships are strictly regulated and proper documentation is essential for visa cancellation, final settlements, and legal compliance. The addendum typically includes detailed provisions for end-of-service benefits calculation, notice period arrangements, and final settlements. It's used across various industries and is especially relevant when ensuring clean breaks in employment relationships while protecting both parties' interests under UAE law.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Reference to the original employment contract, its date, and key terms being terminated

3. Definitions: Key terms used in the addendum, including 'Termination Date', 'Settlement Amount', and other relevant definitions

4. Termination Agreement: Mutual agreement to terminate the employment relationship and specification of the termination date

5. Final Settlement: Details of all financial settlements including salary, end of service gratuity, and other entitlements as per UAE Labor Law

6. Release and Waiver: Mutual release of claims and obligations post-termination

7. Return of Company Property: Requirements for returning company assets, documents, and other property

8. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction for dispute resolution

Optional Sections

1. Non-Compete and Non-Solicitation: Include when the original contract contained these provisions and they need to survive termination

2. Ongoing Confidentiality Obligations: Include when there are specific confidentiality requirements that survive termination

3. Transition Arrangements: Include when there needs to be a handover period or specific transition duties

4. Outstanding Leave Settlement: Include when there is unused annual leave to be calculated and settled

5. Visa and Immigration Status: Include for expatriate employees requiring visa cancellation arrangements

6. Reference and Communication: Include when parties want to agree on how future employment references will be handled

Suggested Schedules

1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial settlements including basic salary, allowances, and end of service benefits

2. Schedule 2 - Company Property Checklist: List of all company property to be returned with confirmation of return status

3. Schedule 3 - Handover Documentation: If applicable, list of documents, passwords, and processes to be handed over

4. Appendix A - Original Employment Contract: Copy of the original employment contract being terminated

5. Appendix B - Employee Clearance Form: Standard clearance form confirming all company obligations have been met

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

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alex.den.21@genieai.co
Relevant legal definitions
Agreement
Original Employment Contract
Termination Date
Final Settlement Amount
End of Service Gratuity
Notice Period
Confidential Information
Company Property
Release Date
Settlement Period
Working Day
Basic Salary
Clearance Certificate
Outstanding Benefits
Handover Documents
Governing Law
Business Day
Effective Date
Labour Law
Settlement Statement
Final Payment
Company
Employee
Employer
Termination Addendum
Remaining Salary
Annual Leave Balance
Repatriation Expenses
Company Records
Intellectual Property
Relevant Industries

Banking & Financial Services

Real Estate & Construction

Technology & Communications

Oil & Gas

Healthcare

Retail & Consumer

Manufacturing

Professional Services

Hospitality & Tourism

Education

Transportation & Logistics

Relevant Teams

Human Resources

Legal

Compliance

Finance

Payroll

Employee Relations

Administration

Risk Management

Relevant Roles

HR Manager

Legal Counsel

Compliance Officer

Department Manager

HR Director

Chief Human Resources Officer

Employment Lawyer

HR Business Partner

Recruitment Manager

Personnel Administrator

Employee Relations Manager

Industries
UAE Labor Law (Federal Decree-Law No. 33 of 2021): The primary legislation governing employment relationships in the UAE, including termination provisions, notice periods, and procedural requirements for ending employment contracts
UAE Civil Code (Federal Law No. 5 of 1985): Contains general provisions regarding contracts, including formation, termination, and principles of contractual relationships that apply to employment contracts
UAE Federal Law No. 8 of 1980: Though largely superseded by the new labor law, some provisions remain relevant regarding end-of-service benefits calculation and employee rights
Ministerial Resolution No. 47 of 2022: Regulations regarding employment contract forms and termination procedures in the UAE
UAE Federal Law No. 26 of 1981: Law concerning labor dispute resolution and the procedures for settling employment-related disputes
Relevant Free Zone Regulations: Specific regulations that may apply if the employment relationship is governed by UAE Free Zone authorities, such as DIFC or ADGM employment laws
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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