The End of Service Contract is a crucial document used in the United Arab Emirates when concluding an employment relationship, whether through resignation, termination, or mutual agreement. This document, governed by UAE Labor Law (Federal Decree-Law No. 33 of 2021), serves as a comprehensive record of the final settlement between employer and employee, including detailed calculations of end of service gratuity, notice period arrangements, and outstanding benefits. It's essential for ensuring compliance with UAE labor regulations and protecting both parties' interests by clearly documenting all aspects of the employment termination. The contract is particularly important in the UAE context due to specific local requirements regarding gratuity calculations, visa cancellations, and settlement of dues.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief context of the employment relationship and reason for termination
3. Definitions: Key terms used throughout the agreement including 'Termination Date', 'Final Settlement', 'Gratuity' etc.
4. Termination Date: Confirmation of the official last working day and employment termination date
5. Notice Period: Details of notice period given/received and any payments in lieu of notice
6. Final Settlement: Breakdown of final payment including salary, allowances, and other entitlements
7. End of Service Gratuity: Calculation and payment terms of the end of service gratuity as per UAE Labor Law
8. Outstanding Leave: Settlement of any accrued but unused annual leave
9. Company Property: Requirements for return of company property and documentation
10. Full and Final Settlement: Confirmation that payment represents full and final settlement of all claims
11. Confidentiality: Ongoing obligations regarding confidential information
12. Governing Law: Confirmation of UAE law as governing law and jurisdiction
1. Post-Termination Restrictions: Non-compete and non-solicitation clauses, if applicable to the employee's role
2. Handover Process: Detailed handover requirements for senior or technical positions
3. Visa and Immigration: Provisions regarding cancellation of residence visa and related matters for expatriate employees
4. Medical Insurance Extension: Terms for extending medical insurance coverage post-termination
5. Reference Letter: Terms regarding the provision of employment references
6. Intellectual Property Rights: Specific provisions for employees involved in IP creation
7. International Transfers: Additional provisions for employees being repatriated or transferred internationally
1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial elements of the settlement
2. Schedule 2 - End of Service Gratuity Calculation: Detailed calculation of gratuity based on service period and salary
3. Schedule 3 - Company Property Inventory: List of company property to be returned
4. Schedule 4 - Outstanding Projects/Tasks: List of work items to be completed or handed over
5. Appendix A - Handover Checklist: Detailed checklist for handover of responsibilities and items
6. Appendix B - Reference Letter Template: Standard format for agreed reference letter if applicable
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