Termination Of Service Agreement for United Arab Emirates

Termination Of Service Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law, specifically Federal Decree-Law No. 33 of 2021 and related regulations, designed to formally end an existing service agreement between parties. This document outlines the terms and conditions for termination, including settlement amounts, mutual releases, confidentiality obligations, and post-termination responsibilities. It ensures compliance with UAE labor and commercial laws while providing clear direction for the wrap-up of services and protection of both parties' interests.

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What is a Termination Of Service Agreement?

The Termination of Service Agreement is a crucial document used in the United Arab Emirates when parties wish to formally end their existing service arrangement. It is particularly relevant when services need to be discontinued in compliance with UAE Federal Decree-Law No. 33 of 2021 and related commercial regulations. This document is essential for protecting both parties' interests during the termination process, ensuring proper documentation of final settlements, and establishing clear post-termination obligations. It includes provisions for confidentiality, property return, and mutual releases, while addressing specific UAE legal requirements for service termination. The agreement is commonly used in both private sector and free zone contexts, requiring careful consideration of jurisdiction-specific requirements and business customs.

What sections should be included in a Termination Of Service Agreement?

1. Parties: Identification of all parties to the agreement, including full legal names and addresses

2. Background: Brief context of the existing service agreement and the reasons for termination

3. Definitions: Key terms used throughout the agreement defined for clarity and consistency

4. Effective Date of Termination: Clear statement of when the service agreement will terminate

5. Settlement Terms: Details of final payments, including any outstanding fees, notice period payments, or compensation

6. Mutual Release: Provisions releasing both parties from future claims related to the service agreement

7. Return of Property: Requirements for returning any physical or intellectual property, documents, or equipment

8. Confidentiality: Ongoing obligations regarding confidential information post-termination

9. Non-Disparagement: Mutual agreements not to make negative statements about each other

10. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts' jurisdiction

11. Execution: Signature blocks and execution requirements

What sections are optional to include in a Termination Of Service Agreement?

1. Transition Services: Details of any handover process or transition period, used when service continuity is critical

2. Non-Compete Obligations: Post-termination competitive restrictions, included when protecting business interests is crucial

3. Reference Provision: Terms regarding future employment references, included in sensitive terminations

4. Surviving Obligations: List of specific obligations that continue after termination, used for complex service relationships

5. Tax Considerations: Special tax-related provisions, included when tax implications are significant

6. Dispute Resolution: Alternative dispute resolution procedures, included when parties prefer arbitration or mediation

7. Insurance and Indemnity: Ongoing insurance obligations and indemnification provisions, used for high-risk services

What schedules should be included in a Termination Of Service Agreement?

1. Schedule 1 - Original Service Agreement: Copy or summary of the original service agreement being terminated

2. Schedule 2 - Settlement Calculation: Detailed breakdown of final payments and settlements

3. Schedule 3 - Property Inventory: List of items to be returned or transferred between parties

4. Schedule 4 - Completion Certificate: Form of certificate confirming completion of all termination obligations

5. Appendix A - Handover Checklist: Detailed list of tasks and documents required for service transition

6. Appendix B - Confidential Information: Specific list of confidential information covered by ongoing obligations

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

Cost

Free to use
Relevant Industries

Information Technology

Professional Services

Construction

Facilities Management

Healthcare

Education

Financial Services

Telecommunications

Real Estate

Consulting

Manufacturing

Logistics

Hospitality

Relevant Teams

Legal

Procurement

Operations

Finance

Risk & Compliance

Human Resources

Commercial

Business Development

Project Management

Corporate Governance

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

Business Development Manager

Operations Director

Project Manager

Chief Financial Officer

Commercial Director

Risk Manager

Compliance Officer

Human Resources Director

General Manager

Company Secretary

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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