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Termination Agreement Form for United Arab Emirates

Termination Agreement Form Template for United Arab Emirates

A comprehensive legal document governed by UAE Labor Law (Federal Decree-Law No. 33 of 2021) that formalizes the mutual agreement to terminate an employment relationship between an employer and employee. The agreement details the terms and conditions of the termination, including the final settlement calculation, end-of-service benefits, and ongoing obligations of both parties. It ensures compliance with UAE employment regulations while providing clear documentation of the termination terms, protecting both employer and employee interests, and preventing future disputes. The document addresses specific UAE legal requirements such as gratuity calculations, notice periods, and visa cancellation procedures where applicable.

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What is a Termination Agreement Form?

The Termination Agreement Form is a crucial document used in the United Arab Emirates when formally ending an employment relationship by mutual consent. It is designed to comply with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and provides a comprehensive framework for documenting the termination terms, final settlements, and ongoing obligations of both parties. This document is particularly important in the UAE context where employment relationships are heavily regulated and proper documentation is essential for visa cancellation and labor department compliance. The agreement typically includes details about end-of-service gratuity calculations, notice period arrangements, and full and final settlement terms. It serves as a protective measure for both employers and employees by clearly stating all termination conditions and preventing future disputes.

What sections should be included in a Termination Agreement Form?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration/ID numbers

2. Background: Brief overview of the employment relationship, including original employment date, position, and mutual agreement to terminate

3. Definitions: Key terms used throughout the agreement, ensuring clarity and consistent interpretation

4. Termination Date: Specific date when employment relationship ends and final working day

5. Final Settlement: Breakdown of final payment including salary, end of service gratuity, and other entitlements as per UAE Labor Law

6. Return of Company Property: Requirements for returning company assets, documents, and equipment

7. Confidentiality: Ongoing obligations regarding confidential information post-termination

8. Full and Final Settlement: Confirmation that the agreement represents a full and final settlement of all claims

9. Governing Law and Jurisdiction: Confirmation of UAE law application and relevant court jurisdiction

10. Execution: Signature blocks and execution requirements

What sections are optional to include in a Termination Agreement Form?

1. Non-Compete Obligations: Include when enforcing post-termination competitive restrictions (subject to UAE Labor Law limitations)

2. Intellectual Property Rights: Include when dealing with employees who created/managed IP during employment

3. Handover Process: Include for senior positions requiring detailed knowledge transfer

4. Reference and Communication: Include when parties agree on how future employment references will be handled

5. Outstanding Leave: Include when addressing unused annual leave balance

6. Ongoing Benefits: Include when certain benefits (like medical insurance) continue post-termination

7. Legal Fees: Include when addressing who bears the cost of agreement preparation

8. Visa and Immigration: Include for expatriate employees requiring visa cancellation provisions

What schedules should be included in a Termination Agreement Form?

1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial elements including basic salary, allowances, and statutory entitlements

2. Schedule 2 - Company Property List: Itemized list of company property to be returned

3. Schedule 3 - Handover Checklist: Detailed list of tasks, documents, and responsibilities to be transferred

4. Schedule 4 - Outstanding Projects/Tasks: List of ongoing projects and their status for proper handover

5. Appendix A - Original Employment Contract: Copy of the original employment contract for reference

6. Appendix B - Employee Clearance Form: Standard company clearance form confirming return of assets and settlement of 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

Cost

Free to use
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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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