The Assignment of Employment Agreement is essential in the UAE business environment where corporate restructurings, acquisitions, and group reorganizations frequently necessitate the transfer of employees between entities. This document is specifically designed to comply with UAE Labor Law requirements and ensures a smooth transition of employment relationships while protecting the rights and obligations of all parties involved. It addresses critical elements such as continuity of service, end-of-service benefits, visa sponsorship transfer, and any modifications to existing employment terms. The agreement is particularly important given the UAE's strict employment and immigration regulations, and it helps companies manage their workforce effectively during organizational changes while maintaining compliance with local laws.
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1. Parties: Identifies the current employer (Assignor), new employer (Assignee), and the Employee
2. Background: Sets out the context of the current employment relationship and the intention to assign it to the new employer
3. Definitions: Defines key terms used throughout the agreement, including 'Effective Date', 'Employment Agreement', and 'Assignment'
4. Assignment: Core clause detailing the transfer of rights and obligations under the employment agreement
5. Effective Date: Specifies when the assignment takes effect and any conditions precedent
6. Continuing Terms: Confirms which terms of the original employment agreement remain unchanged
7. Employee Benefits: Addresses the transfer and continuation of employee benefits, including end-of-service benefits
8. Visa and Immigration: Details the process and responsibilities for transferring the employee's visa sponsorship
9. Indemnities: Sets out the mutual indemnities between the parties regarding pre and post-assignment liabilities
10. Governing Law and Jurisdiction: Specifies UAE law as governing law and establishes jurisdiction for disputes
1. Modified Terms: Used when certain terms of employment will change upon assignment, detailing the specific modifications
2. Free Zone Provisions: Required when either employer is located in a UAE Free Zone, addressing specific free zone requirements
3. Non-Competition: Include if new non-competition terms are being introduced or existing ones modified
4. Confidentiality: Optional section if additional confidentiality obligations are being imposed
5. Training Costs: Include if there are outstanding training costs or bonds being transferred
6. Group Company Rights: Required when assignment includes rights to assign to group companies
1. Schedule 1 - Original Employment Agreement: Copy of the existing employment agreement being assigned
2. Schedule 2 - Modified Terms: Detailed list of any terms being modified as part of the assignment
3. Schedule 3 - Employee Benefits Statement: Statement of accrued benefits and their treatment post-assignment
4. Appendix A - Required Notices: Ƶ of notices required for visa transfer and ministry notifications
5. Appendix B - Calculation of Benefits: Detailed calculation of end-of-service and other benefits up to assignment date
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