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Letter Of Termination Of Service for United Arab Emirates

Letter Of Termination Of Service Template for United Arab Emirates

A formal document governed by UAE Labor Law (Federal Decree-Law No. 33 of 2021) that officially communicates the termination of employment between an employer and employee. This document must comply with UAE's strict employment regulations and includes essential information such as the termination date, notice period, final settlement details, and post-employment obligations. It serves as a legal record of employment termination and outlines both parties' rights and responsibilities during the termination process, including end-of-service benefits calculation and company property return requirements.

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What is a Letter Of Termination Of Service?

The Letter of Termination of Service is a crucial document in UAE employment relations, required whenever an employment relationship is formally ended by the employer. It must strictly comply with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and any applicable free zone regulations. This document is used to officially communicate the termination decision, specify the notice period, outline the final settlement details, and remind the employee of any post-employment obligations. The letter serves as a legal record and must include specific elements required by UAE law, such as the termination date, notice period details, and end-of-service benefit calculations. It's particularly important in the UAE context due to the jurisdiction's strict employment regulations and the formal nature of employment relationships.

What sections should be included in a Letter Of Termination Of Service?

1. Letter Header and Date: Company letterhead, date, and reference number if applicable

2. Recipient Details: Employee's full name, employee ID, position, and department

3. Subject Line: Clear indication that this is a termination letter

4. Termination Notice: Clear statement of employment termination with specific last working day

5. Legal Basis: Reference to relevant employment contract clause and UAE Labor Law provisions

6. Notice Period: Confirmation of notice period and how it will be served

7. Final Settlement: Overview of final settlement including salary, end-of-service gratuity, and other entitlements

8. Company Property: Requirements for returning company property and documents

9. Acknowledgment: Space for employee signature and date of receipt

10. Authorized Signatory: Company authorized representative's signature block

What sections are optional to include in a Letter Of Termination Of Service?

1. Garden Leave: Used when employee is required to serve notice period away from office

2. Non-Compete Reminder: Include when employment contract contains post-termination restrictions

3. Handover Requirements: Detailed handover instructions for specific roles with critical responsibilities

4. Outstanding Loans/Advances: Include if employee has any outstanding financial obligations to company

5. Insurance Benefits: Details about continuation or termination of medical insurance coverage

6. Exit Interview: Include if company requires participation in exit interview process

7. References: Company's policy regarding providing employment references

What schedules should be included in a Letter Of Termination Of Service?

1. Final Settlement Calculation: Detailed breakdown of final payment including salary, gratuity, leave encashment, and any other dues

2. Handover Checklist: List of company assets, documents, and access credentials to be returned

3. Outstanding Tasks List: List of pending work items requiring handover

4. Benefits Summary: Summary of benefits status and termination dates

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

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Document Type

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions





















Clauses




















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Banking and Financial Services

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Relevant Teams

Human Resources

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Senior Management

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Relevant Roles

Human Resources Director

HR Manager

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Department Head

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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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