Separation And Release Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE labor law that formalizes the termination of employment between an employer and employee. This agreement details the terms of separation, including final settlements, end of service benefits as per UAE regulations, mutual releases of claims, and post-employment obligations. It ensures compliance with UAE Federal Decree-Law No. 33 of 2021 and related employment legislation, while providing legal protection for both parties through clear documentation of their rights, obligations, and agreed terms of separation.

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What is a Separation And Release Agreement?

A Separation and Release Agreement is a crucial document used when terminating an employment relationship in the UAE, whether through mutual agreement, resignation, or termination. This document must comply with UAE Federal Decree-Law No. 33 of 2021 and related employment legislation, ensuring all mandatory end of service benefits and entitlements are properly addressed. The agreement serves multiple purposes: it documents the terms of separation, protects both parties from future claims, details all financial settlements, and outlines post-employment obligations. It's particularly important in the UAE context due to specific local labor law requirements regarding end of service benefits, notice periods, and settlement calculations. The agreement typically includes provisions for final settlements, gratuity payments, non-compete clauses (where applicable), and confidentiality obligations, all structured to be enforceable under UAE law.

What sections should be included in a Separation And Release Agreement?

1. Parties: Identification of the employer and employee, including all relevant corporate and personal details

2. Background: Brief history of employment relationship, reason for separation, and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including 'Effective Date', 'Separation Date', 'Confidential Information'

4. Termination of Employment: Formal statement of employment termination, including last working day and handover requirements

5. Final Settlement: Detailed breakdown of all payments including salary, end of service gratuity, and other entitlements under UAE law

6. Release and Waiver: Mutual release of claims and legal rights between parties, crafted in compliance with UAE law

7. Company Property: Requirements for return of company property, documents, and access credentials

8. Confidentiality Obligations: Ongoing obligations regarding confidential information and trade secrets

9. Non-Disparagement: Mutual agreements regarding non-disparagement of either party

10. References: Agreement on the nature and content of employment references

11. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts for dispute resolution

What sections are optional to include in a Separation And Release Agreement?

1. Non-Competition: Restrictions on future employment, if applicable and previously agreed in employment contract (noting UAE law restrictions on such clauses)

2. Non-Solicitation: Restrictions on soliciting employees or customers, if applicable under original employment terms

3. Continuation of Benefits: Details of any benefits extending beyond termination date, such as medical insurance

4. Immigration Status: Provisions regarding visa cancellation and immigration status (for expatriate employees)

5. Stock Options/Share Rights: Treatment of any outstanding equity compensation or share rights

6. Rehire Eligibility: Statement regarding eligibility for future employment with the company

7. Cooperation in Transition: Terms for post-termination cooperation in handover or ongoing matters

What schedules should be included in a Separation And Release Agreement?

1. Schedule 1 - Payment Calculation: Detailed calculation of final settlement amount including breakdown of all components

2. Schedule 2 - Company Property Checklist: List of all 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 and any amendments

5. Appendix B - Handover Document: Detailed list of ongoing projects, contacts, and handover instructions

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Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

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Termination Of Account Letter

A UAE-compliant formal notice from a bank to an account holder announcing the termination of banking services and outlining closure procedures.

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Download a Standard Separation And Release Agreement

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What is a Separation And Release Agreement?

What sections should be included in a Separation And Release Agreement?

What sections are optional to include in a Separation And Release Agreement?

What schedules should be included in a Separation And Release Agreement?

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Alex Denne

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