Termination Of Contract Letter for United Arab Emirates

Termination Of Contract Letter Template for United Arab Emirates

A formal document prepared under UAE labor law (Federal Decree-Law No. 33 of 2021) that officially communicates the termination of an employment contract or business agreement. This document adheres to UAE legal requirements regarding notice periods, final settlements, and termination procedures. It includes essential details such as the effective date of termination, notice period, final settlement calculations, and handover requirements. The letter ensures compliance with local labor laws while protecting both employer and employee rights, particularly concerning end-of-service benefits and contractual obligations under UAE jurisdiction.

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What is a Termination Of Contract Letter?

The Termination Of Contract Letter is a crucial document used in the United Arab Emirates when formally ending an employment or business relationship. It must comply with UAE Federal Decree-Law No. 33 of 2021 and related employment regulations, which specify requirements for notice periods, end-of-service benefits, and proper documentation. This document is essential for maintaining clear records of employment termination, protecting both employer and employee rights, and ensuring compliance with local labor laws. It should be used whenever an employment contract is being terminated, whether by mutual agreement, for cause, or through standard notice procedures. The letter typically includes specific details about final settlements, handover procedures, and ongoing obligations, all structured according to UAE legal requirements.

What sections should be included in a Termination Of Contract Letter?

1. Letter Header: Company letterhead, date, reference number, and recipient's details

2. Subject Line: Clear indication that this is a contract termination notice

3. Contract Reference: Details of the original contract including date and reference number

4. Termination Statement: Clear statement of the intention to terminate the contract

5. Notice Period: Specification of the notice period and the effective date of termination

6. Final Settlement: Information about final payments, end-of-service benefits, and other entitlements

7. Handover Requirements: Instructions regarding the handover of company property, documents, and responsibilities

8. Closing Statement: Professional closing with contact information for further communication

What sections are optional to include in a Termination Of Contract Letter?

1. Reason for Termination: Included when there is a specific cause for termination that needs to be documented

2. Non-Compete Reminder: Included when the original contract contains non-compete or confidentiality clauses that continue post-termination

3. Mutual Agreement Statement: Used when the termination is by mutual consent of both parties

4. Outstanding Obligations: Included when there are specific obligations or tasks that need to be completed before departure

5. Exit Interview: Details about exit interview arrangements, if company policy requires one

6. Reference Provision: Information about the company's policy on providing references

What schedules should be included in a Termination Of Contract Letter?

1. Final Settlement Calculation: Detailed breakdown of final payment including salary, gratuity, and other benefits

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

3. Clearance Form: Document listing all departments that need to provide clearance before final settlement

4. Handover Report Template: Template for documenting the handover of responsibilities and ongoing projects

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

Employment Form

Cost

Free to use
Relevant Industries

Banking and Financial Services

Real Estate and Construction

Technology and Communications

Healthcare

Retail and Consumer Goods

Education

Professional Services

Manufacturing

Hospitality and Tourism

Energy and Utilities

Transportation and Logistics

Media and Entertainment

Relevant Teams

Human Resources

Legal

Compliance

Operations

Administration

Management

Personnel

Corporate Governance

Employee Relations

Talent Management

Relevant Roles

Human Resources Manager

Legal Counsel

Department Director

Operations Manager

HR Business Partner

Compliance Officer

Managing Director

Chief Executive Officer

Administrative Manager

Personnel Manager

HR Administrator

Legal Manager

Business Unit Head

Regional Manager

General Manager

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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