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Employee Settlement And Release Agreement for United Arab Emirates

Employee Settlement And Release Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE labor law that formalizes the termination of employment relationship between an employer and employee, outlining agreed-upon settlement terms, financial compensation, and mutual releases of claims. The agreement ensures compliance with Federal Decree-Law No. 33 of 2021 and other relevant UAE employment regulations, providing both parties with legal certainty and protection. It includes detailed provisions for settlement payments, statutory entitlements, final clearance terms, and comprehensive releases, while addressing specific UAE requirements regarding end-of-service benefits and visa obligations.

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What is a Employee Settlement And Release Agreement?

The Employee Settlement And Release Agreement is a crucial document used in the UAE when formally concluding an employment relationship through mutual agreement or following a dispute. It operates within the framework of UAE labor laws, particularly Federal Decree-Law No. 33 of 2021, and serves to document all termination terms, settlement payments, and mutual releases between parties. This agreement is essential when employers and employees wish to achieve a clean break while ensuring all statutory and contractual obligations are properly addressed. It typically includes provisions for end-of-service gratuity calculations, notice period arrangements, and visa cancellation procedures specific to UAE requirements. The document provides legal protection for both parties by preventing future claims and ensuring all aspects of the employment termination are properly documented and agreed upon.

What sections should be included in a Employee Settlement And Release Agreement?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief history of employment relationship, reference to any disputes or claims, and intention to settle

3. Definitions: Definitions of key terms used throughout the agreement

4. Termination Date: Confirmation of the employment termination date and immediate effects

5. Settlement Payments: Detailed breakdown of all payments to be made, including statutory entitlements, ex-gratia payments, and timing

6. Tax and Deductions: Provisions regarding any applicable tax treatment and authorized deductions

7. Release and Waiver: Comprehensive release of all claims by employee against employer and group companies

8. Employee Warranties: Employee confirmations regarding return of property, confidential information, and full disclosure

9. Legal Advice: Confirmation that the employee has had the opportunity to seek independent legal advice

10. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts' jurisdiction

11. Execution: Signature blocks and execution formalities

What sections are optional to include in a Employee Settlement And Release Agreement?

1. Continuing Obligations: Used when certain obligations from the employment contract continue post-termination

2. Non-Compete and Non-Solicitation: Include if enforcing post-termination restrictions

3. Confidentiality: Detailed confidentiality provisions if not covered in existing agreements

4. Reference: Terms regarding future employment references if agreed

5. Company Property: Detailed section about return of company property if significant items are involved

6. Immigration Status: Include for expatriate employees regarding visa cancellation and status

7. Medical Insurance: Include if there are specific arrangements for continuation or termination of medical benefits

8. Share Options/Benefits: Include if employee has any share options or long-term benefits to be addressed

What schedules should be included in a Employee Settlement And Release Agreement?

1. Schedule 1 - Payment Calculation: Detailed breakdown of settlement payment calculation including salary, notice, gratuity, and other entitlements

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

3. Schedule 3 - Employee Benefits: Summary of benefits being terminated or continued

4. Appendix A - Certificate of Independent Legal Advice: To be completed by employee's legal advisor if applicable

5. Appendix B - Resignation Letter: Standard form resignation letter to be signed by employee

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Cost

Free to use
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Relevant Industries

Banking & Financial Services

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Healthcare

Retail

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Energy & Utilities

Relevant Teams

Human Resources

Legal

Compliance

Finance

Senior Management

Employee Relations

Payroll

Risk Management

Relevant Roles

Human Resources Director

Legal Counsel

HR Manager

Compliance Officer

Employee Relations Manager

HR Business Partner

Chief Human Resources Officer

General Counsel

HR Operations Manager

Talent Management Director

Compensation and Benefits Manager

Chief Executive Officer

Chief Financial Officer

Department Managers

Line Managers

Industries








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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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