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.
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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
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
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
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Technology
Healthcare
Construction
Real Estate
Retail
Manufacturing
Education
Professional Services
Hospitality
Energy
Transportation and Logistics
Media and Entertainment
Telecommunications
Government and Public Sector
Relevant Teams
Human Resources
Legal
Compliance
Senior Management
Operations
Administration
Employee Relations
Payroll
Risk Management
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
Department Head
Line Manager
Chief Executive Officer
Managing Director
HR Business Partner
Personnel Manager
Compliance Officer
Office Manager
Operations Director
General Manager
Chief Human Resources Officer
Employee Relations Manager
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