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Employee Clearance Letter for United Arab Emirates

Employee Clearance Letter Template for United Arab Emirates

An Employee Clearance Letter is a formal document issued under UAE labor law that confirms an employee has completed all necessary exit procedures and has been cleared of all company obligations upon termination of employment. The document, governed by UAE Federal Law No. 33 of 2021 and MOHRE regulations, serves as official confirmation that the employee has returned all company property, settled any financial obligations, and completed all required handover procedures. This document is crucial for both employers and employees in the UAE as it provides legal protection and is often required for new employment visa processing.

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What is a Employee Clearance Letter?

The Employee Clearance Letter is a mandatory document under UAE labor law that forms part of the formal employment termination process. It is required whenever an employee leaves an organization, whether through resignation, termination, or end of contract. The document serves multiple purposes: it protects the company's interests by ensuring all company property is returned and obligations are met; it provides the employee with necessary documentation for future employment and visa processing; and it complies with UAE Federal Law No. 33 of 2021 and MOHRE requirements regarding employment termination. The letter typically includes confirmation of returned company assets, settlement of financial dues, completion of knowledge transfer, and departmental clearances. This document is particularly important in the UAE context as it is often required by new employers and government authorities for processing new employment visas and work permits.

What sections should be included in a Employee Clearance Letter?

1. Letter Header: Company letterhead, date, reference number, and document title

2. Employee Information: Full name, employee ID, designation, department, and dates of employment

3. Clearance Statement: Primary statement confirming the employee has been cleared of all obligations

4. Company Property Return: Confirmation of return of all company assets, ID cards, access cards, etc.

5. Financial Clearance: Statement confirming settlement of all financial matters including salary, end of service benefits, and any outstanding dues

6. Non-Dues Declaration: Statement confirming no pending dues or claims from either party

7. Authorization: Signatures of authorized company representative(s) and official company stamp

What sections are optional to include in a Employee Clearance Letter?

1. Confidentiality Reminder: Reference to ongoing confidentiality obligations, used when employee had access to sensitive information

2. Project Handover Status: Confirmation of project/work handover completion, used for employees in project-based roles

3. IT Systems Access: Specific mention of termination of access to IT systems, used for employees with high-level system access

4. Non-Compete Reminder: Reference to non-compete obligations, used when original employment contract included non-compete clauses

5. Visa/Immigration Status: Statement regarding employment visa cancellation status, used for expatriate employees

What schedules should be included in a Employee Clearance Letter?

1. Departmental Clearance Form: Checklist or form showing clearance from various departments (IT, Finance, HR, etc.)

2. Asset Return Checklist: Detailed list of company property returned with condition notes

3. Final Settlement Statement: Breakdown of final payment including salary, gratuity, and any other dues

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 Form

Cost

Free to use
Relevant legal definitions



















Clauses















Relevant Industries

Banking and Financial Services

Technology

Healthcare

Construction

Real Estate

Retail

Manufacturing

Education

Professional Services

Hospitality

Oil and Gas

Telecommunications

Government and Public Sector

Media and Entertainment

Transportation and Logistics

Relevant Teams

Human Resources

Legal

Compliance

Finance

Administration

Information Technology

Operations

Employee Relations

Relevant Roles

HR Manager

HR Director

Legal Counsel

Compliance Officer

HR Business Partner

Employee Relations Manager

HR Operations Manager

HR Administrator

Department Manager

Line Manager

Finance Manager

IT Manager

Administrative Manager

Office Manager

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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