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Salaried Partner Agreement for United Arab Emirates

Salaried Partner Agreement Template for United Arab Emirates

A comprehensive agreement governed by UAE law that establishes the terms and conditions of a salaried partner's relationship with a professional partnership or firm. The document combines elements of both partnership and employment law, addressing the unique position of salaried partners who have partner status but are effectively employees of the firm. It covers crucial aspects including remuneration, duties, profit sharing, restrictive covenants, and termination provisions, while ensuring compliance with UAE Federal Labor Law and Commercial Companies Law.

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What is a Salaried Partner Agreement?

The Salaried Partner Agreement is essential for professional firms operating in the UAE that wish to appoint partners who will have partner status and certain partnership privileges but remain employees of the firm. This hybrid arrangement requires careful documentation to address both the partnership aspects (such as participation in management and profit sharing) and employment elements (including salary, benefits, and statutory protections under UAE law). The agreement is particularly relevant for professional service firms looking to promote senior professionals while maintaining control over the equity and management of the firm. It must comply with UAE Federal Labor Law No. 8 of 1980 and Commercial Companies Law, while also addressing specific requirements of professional regulatory bodies where applicable.

What sections should be included in a Salaried Partner Agreement?

1. Parties: Identification of the partnership/firm and the salaried partner

2. Background: Context of the agreement and partnership structure

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Terms of appointment as salaried partner and duration

5. Status and Duties: Role, responsibilities, and scope of authority

6. Commitment and Time: Working hours, availability, and dedication requirements

7. Remuneration and Benefits: Salary, profit share, benefits, and payment terms

8. Expenses and Resources: Expense policies and provision of necessary resources

9. Leave Entitlements: Annual leave, sick leave, and other permitted absences

10. Professional Requirements: Licensing, qualifications, and continuing education

11. Confidentiality: Protection of firm's confidential information

12. Intellectual Property: Ownership and rights to work product and innovations

13. Restrictive Covenants: Non-compete and non-solicitation provisions

14. Termination: Grounds and process for termination

15. Post-Termination Obligations: Ongoing obligations after agreement ends

16. General Provisions: Governing law, notices, entire agreement, and amendments

What sections are optional to include in a Salaried Partner Agreement?

1. Capital Contribution: Required if the salaried partner is expected to make any capital investment

2. International Assignments: Include if partner may be required to work in other jurisdictions

3. Client Development: Specific obligations regarding business development, if required

4. Management Responsibilities: Include if partner has specific management duties

5. Performance Metrics: Include if specific KPIs or performance targets apply

6. Profit Sharing Scheme: Detailed profit sharing mechanics if more complex than basic salary

7. Professional Indemnity: Specific provisions about professional liability and insurance

8. Retirement Provisions: Include if specific retirement benefits or arrangements apply

What schedules should be included in a Salaried Partner Agreement?

1. Schedule 1 - Remuneration Details: Detailed breakdown of salary, benefits, and profit share calculation

2. Schedule 2 - Duties and Responsibilities: Detailed list of partner's specific duties and areas of responsibility

3. Schedule 3 - Benefits Package: Comprehensive list of benefits, allowances, and entitlements

4. Schedule 4 - Performance Criteria: Specific metrics and targets for performance evaluation

5. Schedule 5 - Restricted Clients: List of clients covered by non-solicitation provisions

6. Appendix A - Firm Policies: Key firm policies applicable to salaried partners

7. Appendix B - Professional Requirements: Details of required qualifications and ongoing professional development

8. Appendix C - Expense Policy: Detailed guidelines on expense claims and reimbursement

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

Publisher

Genie AI

Cost

Free to use

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