Voluntary Settlement Agreement for United Arab Emirates

Voluntary Settlement Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that formalizes a voluntary agreement between parties to settle disputes, claims, or differences. The agreement adheres to UAE Federal Law No. 5 of 1985 (Civil Code) and incorporates relevant provisions of UAE commercial and civil legislation. It provides a legally binding framework for parties to resolve their differences amicably, outlining settlement terms, mutual releases, and future obligations while ensuring compliance with UAE legal requirements and Sharia principles.

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What is a Voluntary Settlement Agreement?

The Voluntary Settlement Agreement is a crucial legal instrument in the United Arab Emirates used to document and formalize the amicable resolution of disputes between parties. This document is particularly relevant in the UAE's dynamic business environment, where it serves to prevent costly litigation and maintain business relationships. The agreement must comply with UAE Federal Law No. 5 of 1985 (Civil Code), particularly Articles 209-272 dealing with settlements (sulh), and may also need to consider specific emirate-level regulations. It typically includes detailed settlement terms, releases, confidentiality provisions, and any ongoing obligations. The document is especially valuable in commercial disputes, employment matters, partnership dissolutions, and corporate disagreements, providing a clear framework for parties to move forward while maintaining legal certainty under UAE law.

What sections should be included in a Voluntary Settlement Agreement?

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and capacity in which they are acting

2. Background: Recitals explaining the context of the dispute or circumstances leading to the settlement

3. Definitions: Definitions of key terms used throughout the agreement

4. Settlement Terms: Core terms of the settlement including payment amounts, actions to be taken, and timing

5. Release and Waiver: Mutual releases and waivers of claims related to the settled matter

6. Confidentiality: Obligations to keep the settlement and its terms confidential

7. Tax Implications: Acknowledgment of tax responsibilities and implications of the settlement

8. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

9. Entire Agreement: Confirmation that the agreement represents the entire understanding between parties

10. Execution: Signature blocks and execution requirements

What sections are optional to include in a Voluntary Settlement Agreement?

1. Non-Admission of Liability: Statement that settlement does not constitute admission of liability - used in disputed matters

2. Return of Property: Provisions for returning company/personal property - used in employment or partnership settlements

3. Non-Disparagement: Mutual agreements not to make negative statements - used in sensitive or public settlements

4. Ongoing Obligations: Details of any continuing obligations between parties - used when relationship continues in some form

5. Future Cooperation: Requirements for future cooperation - used when parties need to work together post-settlement

6. Social Media/Public Statements: Guidelines for public communications - used in high-profile settlements

7. Non-Compete/Non-Solicitation: Restrictions on future business activities - used in commercial or employment settlements

8. Severability: Provision for survival of agreement if parts are found invalid - used in complex settlements

What schedules should be included in a Voluntary Settlement Agreement?

1. Schedule 1 - Settlement Payment Details: Detailed breakdown of settlement amounts and payment terms

2. Schedule 2 - Released Claims: Comprehensive list of claims being settled and released

3. Schedule 3 - Settlement Timeline: Timeline for implementation of settlement terms

4. Schedule 4 - Required Actions: Specific actions required by each party to implement the settlement

5. Appendix A - Related Agreements: Copies of any related agreements being terminated or modified

6. Appendix B - Form of Release: Standard form of release to be executed by parties

7. Appendix C - Property List: Inventory of any property to be transferred or returned

8. Appendix D - Communication Template: Approved format for any public announcements regarding the settlement

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 legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Real Estate & Construction

Healthcare

Technology & IT

Retail & Consumer Goods

Manufacturing

Professional Services

Energy & Resources

Transportation & Logistics

Education

Hospitality & Tourism

Media & Entertainment

Relevant Teams

Legal

Human Resources

Executive Leadership

Finance

Compliance

Risk Management

Operations

Corporate Affairs

Commercial Operations

Business Development

Dispute Resolution

Company Secretariat

Relevant Roles

Legal Counsel

Human Resources Director

Chief Executive Officer

Chief Financial Officer

Commercial Director

Compliance Officer

Risk Manager

Operations Manager

Business Development Manager

Project Manager

Settlement Officer

Dispute Resolution Specialist

Corporate Secretary

General Manager

Managing Director

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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