The Severance Release Agreement is a crucial document used in the United Arab Emirates when formally concluding an employment relationship. It serves as a comprehensive settlement instrument that complies with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and related employment regulations. This agreement is typically implemented when an employment relationship is terminated by mutual consent or unilateral decision, documenting the full and final settlement of all claims, entitlements, and obligations between the parties. It includes detailed calculations of end-of-service benefits, outstanding salary, and other entitlements as required by UAE law, while also incorporating necessary releases and waivers. The document must be drafted in both Arabic and English, with the Arabic version prevailing in case of disputes, and should address specific UAE legal requirements regarding employment termination and settlements.
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1. Parties: Identification of the employer and employee, including all relevant registration/license numbers for the employer and Emirates ID/passport details for the employee
2. Background: Brief description of the employment relationship, including start date, position, and circumstances leading to termination
3. Definitions: Key terms used throughout the agreement, including 'Termination Date', 'Settlement Amount', and 'Released Claims'
4. Termination of Employment: Formal confirmation of employment termination, including the effective date and return of company property
5. Settlement Payment: Detailed breakdown of the settlement amount, including salary, end-of-service gratuity, and any additional payments
6. Release and Waiver: Comprehensive release of claims by the employee against the employer and related entities
7. Confidentiality: Obligations regarding confidential information and trade secrets
8. Post-Termination Obligations: Ongoing obligations of the employee after termination
9. Tax and Legal Implications: Statement regarding tax treatment and legal effect of the agreement
10. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes
11. Language: Specification that the agreement is in Arabic and English with Arabic prevailing
12. Entire Agreement: Confirmation that this agreement represents the complete understanding between parties
13. Execution: Signature blocks and execution requirements
1. Non-Compete and Non-Solicitation: Restrictions on future employment and client/employee solicitation - include when protecting business interests is crucial
2. Continuing Benefits: Details of any benefits extending beyond termination - include when offering continued medical coverage or other benefits
3. Reference and Communications: Terms regarding employment references and internal/external communications about the termination - include when agreed upon
4. Repatriation: Terms regarding repatriation assistance and costs - include for expatriate employees
5. Equity/Share Options: Treatment of any outstanding equity or share options - include when applicable
6. Legal Fees: Provisions regarding payment of legal fees - include when agreed to cover employee's legal costs
7. Cooperation: Terms requiring employee cooperation in transition or future matters - include for senior positions
8. Garden Leave: Terms of any garden leave period - include when applicable before final termination
1. Schedule 1 - Payment Calculation: Detailed calculation of all payment components including basic salary, gratuity, and other entitlements
2. Schedule 2 - Company Property: List of company property to be returned
3. Schedule 3 - Benefits Summary: Summary of any continuing benefits and their duration
4. Appendix A - Acknowledgment Form: Form confirming receipt of all payments and benefits
5. Appendix B - Non-Compete Terms: Detailed terms of any non-compete restrictions including geographic scope and duration
6. Appendix C - Release Declaration: Detailed release declaration in both Arabic and English
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Relevant Industries
Banking and Financial Services
Technology
Construction
Real Estate
Healthcare
Education
Retail
Manufacturing
Professional Services
Energy and Utilities
Telecommunications
Hospitality and Tourism
Media and Entertainment
Transportation and Logistics
Oil and Gas
Relevant Teams
Human Resources
Legal
Finance
Compliance
Executive Leadership
Corporate Secretariat
Payroll
Employee Relations
Risk Management
Operations
Relevant Roles
Chief Executive Officer
Managing Director
Department Head
Senior Manager
Project Manager
Technical Specialist
Sales Executive
Administrative Officer
Human Resources Manager
Financial Controller
Operations Manager
Regional Director
Account Manager
Research Analyst
Software Developer
Marketing Executive
Legal Counsel
Business Development Manager
General Manager
Department Supervisor
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