The Work Settlement Agreement is a crucial document used in the United Arab Emirates when concluding an employment relationship, whether through mutual agreement, resignation, or termination. It serves as a comprehensive settlement instrument that addresses all aspects of the employment termination, including financial settlements, benefit calculations, and mutual releases. The document must comply with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and related regulations, making it essential for properly documenting the conclusion of employment relationships in the UAE. This agreement is particularly important as it provides legal protection for both parties by clearly outlining the terms of separation, preventing future disputes, and ensuring all statutory obligations are met. It typically includes calculations of end-of-service gratuity, outstanding salary, leave balance, and other entitlements specific to UAE employment law.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers
2. Background: Brief history of the employment relationship, including start date, position, and circumstances leading to the settlement
3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty
4. Settlement Terms: Core financial terms of the settlement, including total settlement amount and payment method
5. Release and Waiver: Mutual release of claims and waiver of rights, specifically structured to comply with UAE law
6. End of Employment Confirmation: Formal confirmation of employment termination date and final working day
7. Final Dues and Benefits: Breakdown of end-of-service gratuity, unused leave, and other statutory entitlements
8. Company Property: Requirements for return of company property and confidential information
9. Confidentiality: Obligations regarding confidentiality of the settlement terms and company information
10. Non-Disparagement: Mutual agreements not to make negative statements about each other
11. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction for disputes
12. Execution: Signature blocks and execution requirements in compliance with UAE law
1. Non-Competition: Post-employment restrictions on working for competitors, if applicable under original employment contract and UAE law
2. Immigration Status: Provisions regarding visa cancellation and immigration procedures, required for expatriate employees
3. Medical Insurance: Terms regarding continuation or termination of medical insurance coverage
4. References: Agreement on the nature and content of employment references
5. Outstanding Loans: Settlement of any outstanding loans or advances from the employer
6. Share Options/Benefits: Treatment of unvested shares or long-term benefits, if applicable
7. Severability: Clause ensuring remainder of agreement stays valid if any part is found unenforceable
8. Legal Fees: Agreement on who bears the legal costs of preparing and executing the settlement
1. Schedule 1 - Payment Calculation: Detailed breakdown of settlement payment including basic salary, gratuity, and other entitlements
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Benefits Summary: Summary of benefits and their treatment post-termination
4. Appendix A - Original Employment Contract: Copy of the original employment contract for reference
5. Appendix B - Resignation Letter: Copy of employee's resignation letter or termination notice
6. Appendix C - Release Form: Standard MOHRE release form if required
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