Work Separation Agreement for United Arab Emirates

Work Separation Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE Federal Decree-Law No. 33 of 2021 that formalizes the mutually agreed termination of employment between an employer and employee. This agreement outlines the terms and conditions of the separation, including final settlements, end-of-service benefits, confidentiality obligations, and post-employment restrictions. It ensures compliance with UAE labor laws while protecting both parties' interests and providing clarity on financial settlements, ongoing obligations, and the termination process. The document is particularly important in the UAE context due to specific legal requirements regarding end-of-service benefits, visa cancellation procedures, and mandatory notice periods.

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What is a Work Separation Agreement?

The Work Separation Agreement is a crucial document used in the United Arab Emirates when formally concluding an employment relationship through mutual agreement. It serves as a comprehensive record of the termination terms, ensuring compliance 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 heavily regulated and end-of-service benefits are mandatory. It should be used whenever an employment relationship is being terminated by mutual consent, covering essential aspects such as final settlements, gratuity calculations, notice period arrangements, and post-employment obligations. The agreement provides legal protection for both parties by clearly documenting the separation terms and ensuring all statutory requirements are met.

What sections should be included in a Work Separation Agreement?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration/identification numbers

2. Background: Brief history of employment relationship, including start date, position, and mutual decision to terminate

3. Definitions: Key terms used throughout the agreement, including Termination Date, Final Settlement, etc.

4. Termination of Employment: Formal statement of employment termination, specifying the last working day and notice period arrangements

5. Final Settlement: Details of all financial entitlements including salary, end-of-service gratuity, and other benefits

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

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

8. Full and Final Settlement: Mutual release and waiver of claims, subject to the agreement terms

9. Governing Law and Jurisdiction: Specification of UAE law application and relevant court jurisdiction

10. Execution: Signature blocks and execution requirements

What sections are optional to include in a Work Separation Agreement?

1. Non-Compete and Non-Solicitation: Restrictions on future employment and client/employee solicitation, used when protecting business interests is crucial

2. References: Terms regarding employment references and agreed communication about the separation, used when parties want to specify how future employment queries will be handled

3. Medical Insurance Extension: Terms for continuation of medical insurance coverage, used when offering extended benefits

4. Special Payments or Benefits: Additional payments or benefits beyond statutory requirements, used for enhanced separation packages

5. Handover Requirements: Detailed transition responsibilities, used for senior or critical roles

6. Immigration Status: Provisions regarding visa cancellation and grace period, used for expatriate employees

7. Cooperative Obligations: Requirements for future cooperation in legal or business matters, used when ongoing assistance might be needed

What schedules should be included in a Work Separation Agreement?

1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial entitlements including salary, gratuity, leave encashment, and other benefits

2. Schedule 2 - Company Property Register: Itemized list of company assets to be returned

3. Schedule 3 - Outstanding Obligations: List of any pending tasks, reports, or responsibilities to be completed

4. Appendix A - Handover Checklist: Detailed checklist of handover items and processes

5. Appendix B - Non-Compete Terms: Specific details of any non-compete restrictions including geographic scope and duration

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 Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

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Industries
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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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