The Early Termination Of Employment Contract Template is designed for use in the United Arab Emirates when both employer and employee agree to end their employment relationship before the originally contracted period. This document is essential in the UAE business environment, where employment relationships are strictly regulated under Federal Decree-Law No. 33 of 2021 and related ministerial resolutions. It provides a structured framework for documenting the termination agreement, including crucial elements such as final settlement calculations, notice period arrangements, and post-employment obligations. The template ensures compliance with UAE labor laws while protecting both parties' interests and facilitating a smooth transition. It's particularly relevant in situations of mutual separation, corporate restructuring, or when an employee needs to leave before their contract's natural conclusion.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers
2. Background: Brief context of the existing employment relationship, including reference to the original employment contract and its date
3. Definitions: Key terms used throughout the agreement, including 'Termination Date', 'Final Settlement', 'End of Service Benefits'
4. Termination Agreement: Mutual agreement to terminate the employment contract ahead of its term
5. Effective Date of Termination: Specific date when the employment relationship will end, including last working day
6. Notice Period: Details of notice period requirement or payment in lieu of notice
7. Final Settlement: Breakdown of final payment including salary, end of service benefits, and other entitlements
8. Company Property: Requirements for returning company property and documents
9. Confidentiality: Ongoing obligations regarding confidential information
10. Full and Final Settlement: Confirmation that the settlement represents full and final settlement of all claims
11. Governing Law: Confirmation of UAE law as the governing law
12. Execution: Signature blocks and execution details
1. Non-Competition and Non-Solicitation: Restrictive covenants, if applicable under the original employment contract
2. Handover Process: Detailed handover requirements for senior positions or roles involving critical responsibilities
3. Outstanding Leave: Treatment of any accrued but unused annual leave
4. Medical Insurance Extension: Details of any extended medical insurance coverage post-termination
5. Reference Letter: Terms regarding the provision of employment references
6. Visa and Immigration: Specific provisions for expatriate employees regarding visa cancellation and repatriation
7. Stock Options/Share Awards: Treatment of any outstanding stock options or share awards
8. Dispute Resolution: Specific dispute resolution procedures if different from standard court proceedings
1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial elements of the final settlement
2. Schedule 2 - Company Property Checklist: List of company property to be returned
3. Schedule 3 - Handover Checklist: Detailed list of tasks and responsibilities to be handed over
4. Appendix A - Original Employment Contract: Copy of the original employment contract for reference
5. Appendix B - Employee Clearance Form: Standard clearance form listing all departments that need to sign off
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Technology
Real Estate and Construction
Healthcare
Retail and Consumer Goods
Manufacturing
Professional Services
Education
Hospitality and Tourism
Energy and Utilities
Transportation and Logistics
Media and Entertainment
Telecommunications
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Talent Management
Operations
Finance
Administration
Executive Leadership
Relevant Roles
HR Director
HR Manager
Legal Counsel
Compliance Officer
Department Manager
Line Manager
Chief Human Resources Officer
Employee Relations Manager
HR Business Partner
Recruitment Manager
Compensation and Benefits Manager
Legal Director
Chief Legal Officer
Operations Manager
General Manager
Chief Executive Officer
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