The Unfair Dismissal Settlement Agreement is a crucial document used in the UAE when resolving employment termination disputes where an employee claims unfair dismissal. It serves as a legally binding agreement between the employer and employee, documenting the terms of settlement and preventing future claims. The document must comply with UAE Federal Law No. 33 of 2021 and related employment regulations, ensuring all mandatory entitlements are included and properly calculated. It's particularly important in cases where there are disputes about the legitimacy of termination, calculation of end-of-service benefits, or other employment-related claims. The agreement typically includes detailed settlement calculations, mutual releases, and may require official attestation to be legally enforceable in the UAE.
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1. Parties: Identification of the employer and employee, including all relevant details as per UAE Labor Law requirements
2. Background: Brief history of employment, circumstances leading to termination, and dispute background
3. Definitions: Key terms used in the agreement, including 'Termination Date', 'Settlement Sum', and other relevant definitions
4. Settlement Terms: Detailed breakdown of the settlement amount and payment terms
5. Tax and Legal Implications: Statement regarding tax treatment of payments and legal implications under UAE law
6. Employee Claims: Comprehensive list of claims being settled and waived by the employee
7. Acknowledgments: Employee's confirmation of understanding and acceptance of settlement terms
8. Full and Final Settlement: Clause confirming this as a full and final settlement of all claims
9. Return of Company Property: Requirements for returning company assets and documents
10. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction
11. Language: Specification of controlling language version (typically Arabic with English translation)
12. Execution: Signature blocks and execution requirements
1. Confidentiality: Terms regarding confidentiality of the settlement and dispute - include when sensitive information is involved
2. Post-termination Restrictions: Restatement or modification of any non-compete or non-solicitation obligations - include when original employment contract had such provisions
3. References: Terms regarding future employment references - include when agreed as part of settlement
4. Legal Advice: Confirmation that employee received independent legal advice - include when settlement amount is significant
5. Ongoing Cooperation: Terms for employee's assistance in handover or future inquiries - include when relevant to role
6. Medical Insurance: Provisions regarding continuation or termination of medical insurance - include when applicable
7. Share Options/Benefits: Treatment of outstanding share options or benefits - include when employee had such benefits
8. Announcement: Agreed internal/external communications about departure - include for senior positions
1. Schedule 1 - Settlement Calculation: Detailed breakdown of settlement amount including salary, gratuity, notice pay, and other entitlements
2. Schedule 2 - Claims List: Comprehensive list of all claims being settled
3. Schedule 3 - Company Property: Itemized list of company property to be returned
4. Schedule 4 - Employee Benefits: Details of any benefits being retained or terminated
5. Schedule 5 - Reference Template: Agreed format and content of employment reference if applicable
6. Appendix A - Original Employment Contract: Copy of the original employment contract and any amendments
7. Appendix B - Termination Letter: Copy of the termination letter or notice
8. Appendix C - Legal Requirements Checklist: Checklist ensuring compliance with UAE Labor Law requirements
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