The Acknowledgement Letter For Receiving Full And Final Settlement is a crucial document used in the United Arab Emirates when concluding an employment relationship. It is required whenever an employee's service with a company terminates, whether through resignation, termination, or mutual agreement. The document, governed by UAE Federal Decree-Law No. 33 of 2021 (UAE Labor Law), serves multiple purposes: it confirms the employee's receipt of all entitlements, provides a detailed breakdown of the settlement amounts, and includes a release clause protecting the employer from future claims. This document is particularly important in the UAE context where employment laws strongly protect employee rights, and having a properly executed settlement acknowledgment helps prevent future disputes and ensures compliance with local labor regulations.
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1. Letter Header and Date: Company letterhead, date, and reference number if applicable
2. Addressee Details: Full name and address of the employee
3. Subject Line: Clear indication that this is a Full and Final Settlement Acknowledgement
4. Employment Details: Reference to employment period, position, and termination date
5. Settlement Amount Confirmation: Clear statement of the total settlement amount received
6. Itemized Entitlements: List of all components included in the settlement (salary, end of service, leave balance, etc.)
7. Confirmation of Receipt: Clear acknowledgment of receiving all dues and entitlements
8. Release and Discharge: Statement releasing the employer from all claims related to employment
9. Governing Law Statement: Confirmation that UAE law governs the acknowledgment
10. Signature Block: Space for employee signature, date, and witness if required
1. Non-Competition Acknowledgment: Include when the employee was subject to non-compete restrictions that continue post-employment
2. Confidentiality Obligations: Include when emphasizing ongoing confidentiality duties is necessary
3. Return of Company Property: Include when there are specific items to be returned or confirmed as returned
4. Future References: Include when specifying arrangements for employment references
5. Tax Declaration: Include for expatriate employees or when tax implications need to be addressed
6. Outstanding Loans/Advances: Include when there are loan settlements or advance salary adjustments
1. Schedule A - Payment Breakdown: Detailed breakdown of all payment components including basic salary, allowances, and statutory entitlements
2. Schedule B - Benefits Settlement: List of all benefits and their settlement status (e.g., medical insurance, housing, etc.)
3. Schedule C - Company Property Checklist: Itemized list of company property returned or to be returned
4. Appendix 1 - Calculation Sheet: Detailed calculations of end of service benefits and other entitlements as per UAE Labor Law
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Construction and Real Estate
Healthcare
Technology and IT
Manufacturing
Retail and Consumer Goods
Education
Professional Services
Oil and Gas
Hospitality and Tourism
Transportation and Logistics
Media and Entertainment
Telecommunications
Government and Public Sector
Relevant Teams
Human Resources
Legal
Finance
Payroll
Employee Relations
Compliance
Operations
Administration
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
Finance Manager
Payroll Manager
HR Business Partner
Compensation and Benefits Manager
Employee Relations Manager
HR Operations Manager
Legal Manager
Chief Human Resources Officer
HR Administrator
Payroll Administrator
HR Coordinator
Legal Administrator
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