This Private Company Termination Policy serves as a crucial governance document for organizations operating in the United Arab Emirates, establishing standardized procedures for employment termination in compliance with UAE Federal Law No. 33 of 2021 and related regulations. The policy becomes essential when companies need to ensure consistent and legally compliant handling of employment terminations, whether through resignation, dismissal, or redundancy. It provides comprehensive guidance on notice periods, end-of-service benefits calculations, final settlements, and post-employment obligations. This document is particularly important given the specific requirements of UAE labor law, including mandatory notice periods, gratuity calculations, and procedural requirements for various types of termination. The policy helps companies maintain compliance while managing their workforce effectively and minimizing legal risks associated with employment termination.
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1. Introduction and Purpose: Establishes the policy's objectives and scope of application within the company
2. Definitions: Defines key terms used throughout the policy including types of termination, notice period, gross misconduct, etc.
3. Legal Framework: References to UAE Labor Law and other applicable regulations that govern employment termination
4. Types of Employment Termination: Details different categories of termination (resignation, dismissal, redundancy, etc.) and their legal basis
5. Notice Periods: Specifies required notice periods for different employment levels and circumstances
6. End of Service Benefits: Explains calculation and payment of gratuity and other terminal benefits as per UAE law
7. Termination Procedures: Step-by-step process for handling terminations, including documentation requirements
8. Final Settlement: Process for calculating and settling final dues, including salary, leave balance, and other entitlements
9. Return of Company Property: Requirements and procedures for returning company assets and documents
10. Confidentiality and Non-Disclosure: Ongoing obligations regarding company information after employment termination
1. Garden Leave: Include when company policy allows for garden leave during notice period, typically for senior positions
2. Post-Employment Restrictions: Include when company implements non-compete and non-solicitation provisions
3. Redundancy Procedures: Include for larger companies or those likely to undergo restructuring
4. Performance-Based Termination: Include detailed procedures for performance-related terminations in companies with formal performance management systems
5. Appeals Process: Include when company provides formal internal appeal mechanisms for termination decisions
6. Special Categories of Employees: Include when company employs UAE nationals, or has specific provisions for certain employee categories
7. Remote Worker Provisions: Include specific procedures for remote workers if company employs remote staff
1. Schedule 1: Termination Notice Templates: Standard templates for various types of termination notices
2. Schedule 2: Exit Clearance Checklist: Comprehensive checklist for processing employee departures
3. Schedule 3: Final Settlement Calculation Formula: Detailed breakdown of how final settlements are calculated
4. Schedule 4: Handover Document Template: Template for documenting handover of responsibilities and projects
5. Schedule 5: Exit Interview Form: Standard form for conducting and documenting exit interviews
6. Appendix A: Relevant Legal Provisions: Key excerpts from UAE Labor Law regarding termination
7. Appendix B: Company Property Return Form: Checklist and sign-off form for returning company assets
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