Severance Agreement Template for Qatar

A Severance Agreement sets out the final terms when an employer and employee part ways in Qatar. It's a legally binding contract that spells out the compensation package, benefits, and conditions that come with ending the employment relationship. Under Qatar Labor Law, these agreements typically cover final salary payments, end-of-service benefits, and any special bonuses or accommodations.

Beyond money matters, these agreements often include important provisions about confidentiality, non-compete clauses, and the return of company property. They protect both parties by creating clarity around the separation process and preventing future disputes. Most Qatari companies use these agreements for senior positions or during major organizational changes to ensure smooth transitions.

Use a Severance Agreement when ending employment relationships in Qatar, especially for senior positions, sensitive roles, or during major company restructuring. This document becomes essential when offering compensation beyond the standard end-of-service benefits required by Qatar Labor Law, or when dealing with employees who had access to confidential information.

It's particularly valuable during voluntary separation programs, early retirement offers, or redundancy situations where multiple positions are being eliminated. The agreement helps protect company interests by securing confidentiality commitments, preventing future legal claims, and establishing clear terms for any ongoing obligations like non-compete clauses or intellectual property rights.

• Standard Individual Severance: Basic agreement covering salary, benefits, and standard Qatar Labor Law requirements - commonly used for mid-level employees
• Executive Separation Package: Enhanced agreements for senior leaders with complex compensation structures, stock options, and strict non-compete provisions
• Group Redundancy Agreement: Standardized terms for multiple employees during restructuring, typically including consistent separation benefits
• Project Completion Severance: Used in construction and energy sectors when ending fixed-term contracts, focusing on project-specific terms
• Mutual Separation Agreement: Negotiated exits with additional benefits beyond legal minimums, often including confidentiality and non-disparagement clauses

• HR Directors and Managers: Lead the drafting process and negotiate terms within Qatar Labor Law guidelines
• Company Legal Counsel: Review and approve agreement language, ensure compliance with local regulations
• Department Heads: Provide input on role-specific terms and confidentiality requirements
• Departing Employees: Review, negotiate, and sign the agreement, often with legal representation
• External Legal Advisors: Assist with complex cases or when specialized expertise is needed
• Finance Department: Calculate final payments and benefits according to agreement terms

• Employment Details: Gather complete employment history, current salary, and benefits information
• Final Calculations: Determine end-of-service gratuity, unused leave, and any additional benefits under Qatar Labor Law
• Confidentiality Scope: List specific proprietary information and trade secrets requiring protection
• Non-Compete Terms: Define reasonable geographic and time restrictions for post-employment competition
• Payment Schedule: Outline timing and method of severance payments
• Return of Property: Create inventory of company assets to be returned
• Document Review: Use our platform to generate a legally compliant agreement that includes all required elements

• Identification Details: Full names, Qatar ID numbers, and positions of both employer and employee
• Payment Terms: Clear breakdown of severance amount, end-of-service benefits, and payment schedule
• Release Clause: Mutual release of claims and liabilities under Qatar Labor Law
• Confidentiality Terms: Specific obligations regarding company information protection
• Non-Compete Provisions: Geographic and time limitations that comply with local regulations
• Property Return: Detailed list of company assets to be returned
• Governing Law: Explicit reference to Qatar Labor Law and jurisdiction
• Signature Block: Space for dated signatures with witness provisions

A Severance Agreement differs significantly from a Business Acquisition Agreement in Qatar's legal framework. While both handle transitions, they serve distinct purposes and operate under different sections of Qatar law.

• Primary Purpose: Severance Agreements focus on ending employment relationships and settling final compensation, while Business Acquisition Agreements deal with the purchase and transfer of entire business entities
• Scope of Coverage: Severance Agreements typically cover individual employee rights, benefits, and post-employment obligations. Business Acquisition Agreements encompass assets, liabilities, employees, and operational transfers
• Legal Framework: Severance Agreements primarily operate under Qatar Labor Law, focusing on employee rights and benefits. Business Acquisition Agreements fall under commercial and corporate law, requiring additional regulatory approvals
• Duration and Effect: Severance Agreements usually have immediate, one-time effects with some ongoing obligations. Business Acquisition Agreements often involve longer transition periods and complex integration processes