Termination Employment Contract for United Arab Emirates

Termination Employment Contract Template for United Arab Emirates

A comprehensive employment termination agreement template designed for use in the United Arab Emirates, compliant with UAE Federal Decree-Law No. 33 of 2021 and related employment regulations. This document formalizes the termination of employment relationship between employer and employee, outlining all statutory requirements, final settlements, post-termination obligations, and relevant notice periods. It includes provisions for end-of-service benefits calculation, property return procedures, and confidentiality obligations, all specifically tailored to UAE labor law requirements and local business practices.

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What is a Termination Employment Contract?

The Termination Employment Contract Template is a essential legal document designed for use in the United Arab Emirates when formally ending an employment relationship. It ensures compliance with UAE Federal Decree-Law No. 33 of 2021 and related employment regulations, protecting both employer and employee interests during the termination process. This template should be used whenever an employment relationship is being terminated, whether by mutual agreement, resignation, or employer-initiated termination. It incorporates all mandatory elements required by UAE labor law, including notice periods, end-of-service gratuity calculations, and final settlement terms. The document is particularly crucial in the UAE context where employment relationships are heavily regulated and proper documentation is essential for visa cancellation and labor dispute prevention.

What sections should be included in a Termination Employment Contract?

1. Parties: Identification of the employer and employee, including all relevant registration/license numbers and Emirates ID details

2. Background: Brief history of employment relationship, reference to original employment contract, and reason for termination

3. Definitions: Key terms used throughout the agreement including 'Termination Date', 'Final Settlement', 'End of Service Gratuity'

4. Termination of Employment: Formal statement of employment termination, specifying the effective date and type of termination

5. Notice Period: Details of notice period or payment in lieu of notice as per UAE Labor Law requirements

6. Final Settlement: Breakdown of final payment including salary, end of service gratuity, accrued leave, and other entitlements

7. Company Property: Requirements for return of all company property, documents, and data

8. Confidentiality: Ongoing obligations regarding confidential information and trade secrets

9. Non-Competition and Non-Solicitation: Post-termination restrictions as per original employment contract and UAE law

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

11. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction

12. Execution: Signature blocks for both parties with date and witness provisions

What sections are optional to include in a Termination Employment Contract?

1. Gardening Leave: Used when employee is required to serve notice period away from office while remaining employed

2. Special Severance Package: Included when additional benefits beyond statutory requirements are being offered

3. Handover Requirements: Detailed when specific project or role handover is critical

4. Reference Provision: When parties agree on the nature and content of future employment references

5. Continuation of Benefits: When certain benefits like medical insurance are extended post-termination

6. Visa and Immigration: For expatriate employees requiring specific provisions about visa cancellation and repatriation

7. Dispute Resolution: When parties agree to specific dispute resolution mechanisms beyond standard court jurisdiction

What schedules should be included in a Termination Employment Contract?

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

2. Schedule 2 - Company Property Inventory: List of all company property to be returned

3. Schedule 3 - Handover Checklist: Detailed list of tasks, documents, and responsibilities to be handed over

4. Schedule 4 - Outstanding Obligations: List of any pending commitments or obligations from either party

5. Appendix A - Original Employment Contract: Copy of the original employment contract for reference

6. Appendix B - Employee Undertakings: Specific undertakings and agreements made by the employee as part of the termination

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

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions
Relevant Industries

Banking and Financial Services

Technology

Real Estate

Construction

Healthcare

Retail

Manufacturing

Professional Services

Education

Hospitality

Energy

Telecommunications

Media

Transportation and Logistics

Government and Public Sector

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Personnel Administration

Senior Management

Operations

Corporate Services

Risk Management

Administrative Services

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Compliance Officer

HR Business Partner

Personnel Manager

Employee Relations Manager

HR Administrator

Recruitment Manager

Compensation and Benefits Manager

Department Head

Line Manager

Chief Human Resources Officer

HR Operations Manager

General Counsel

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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