The Redundancy Letter is a crucial document used in the United Arab Emirates when terminating employment relationships due to organizational restructuring, economic circumstances, or other legitimate business reasons. It must comply with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and related employment regulations. This document serves multiple purposes: it formally notifies the employee of their redundancy, specifies the notice period and last working day, details all financial entitlements including end-of-service gratuity, addresses visa status, and outlines the next steps in the termination process. The letter also typically includes information about company property return, handover requirements, and any post-employment obligations. Its proper preparation is essential for legal compliance and risk management in UAE employment relationships.
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1. Letter Header: Company letterhead, date, reference number, and employee details including position and employee ID
2. Subject Line: Clear indication that this is a redundancy notification
3. Redundancy Notification: Clear statement of the termination decision and effective date
4. Business Justification: Brief explanation of the legitimate business reasons for the redundancy
5. Notice Period: Specification of the notice period as per UAE Labor Law and last working day
6. Final Settlement: Overview of entitlements including salary, end of service gratuity, and other benefits
7. Company Property: Instructions regarding return of company assets and handover of work
8. Visa Status: Information about visa cancellation process and timing
9. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
10. Contact Information: HR contact details for queries and next steps
1. Garden Leave: Include when employee will be placed on garden leave during notice period
2. Outplacement Support: Details of any career transition services offered by the company
3. Medical Insurance Extension: Include if company provides extended medical coverage post-termination
4. Reference Provision: Include if company agrees to provide employment references
5. Non-Compete Reminder: Include if employee is bound by post-termination restrictions
6. Repatriation Benefits: Include for expatriate employees entitled to repatriation
1. Final Settlement Calculation: Detailed breakdown of all financial entitlements including salary, gratuity, leave balance, and other benefits
2. Handover Checklist: List of company properties to be returned and handover requirements
3. Employee Acknowledgment Form: Form for employee to acknowledge receipt of redundancy letter
4. Benefits Summary: Detailed information about continuation or termination of various benefits
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Technology
Manufacturing
Retail
Construction
Healthcare
Education
Professional Services
Hospitality
Real Estate
Energy
Telecommunications
Media and Entertainment
Transportation and Logistics
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Senior Management
Finance
Administration
Relevant Roles
HR Director
Legal Counsel
HR Manager
Compliance Officer
Employee Relations Manager
HR Business Partner
Legal Manager
Chief Human Resources Officer
HR Operations Manager
Employment Law Specialist
HR Administrator
Talent Management Director
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