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.
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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
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
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
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