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Contract Suspension Letter for United Arab Emirates

Contract Suspension Letter Template for United Arab Emirates

A Contract Suspension Letter is a formal document used in the United Arab Emirates to temporarily suspend an employment contract while maintaining the employment relationship. Operating under UAE Federal Law No. 33 of 2021 and related MOHRE regulations, this document outlines the terms, duration, and conditions of the temporary suspension of employment duties and responsibilities. It addresses crucial elements including salary arrangements, benefit continuation or suspension, and conditions for resuming work, while ensuring compliance with UAE labor laws and maintaining both employer and employee rights during the suspension period.

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What is a Contract Suspension Letter?

The Contract Suspension Letter is a critical document used in the United Arab Emirates when temporary suspension of employment duties becomes necessary due to business circumstances, force majeure events, or mutual agreement between parties. Governed by UAE Federal Law No. 33 of 2021, this document serves as an official record of the temporary pause in employment activities while maintaining the underlying employment relationship. It must detail the suspension's duration, impact on salary and benefits, and conditions for resuming work. The letter requires careful drafting to ensure compliance with MOHRE regulations and may need to be submitted to authorities. It's particularly relevant during economic downturns, business restructuring, or extraordinary circumstances affecting business operations, providing a legal alternative to termination while allowing companies to maintain their workforce.

What sections should be included in a Contract Suspension Letter?

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee

2. Subject Line: Clear indication that this is a Contract Suspension Notice

3. Employee Details: Employee name, position, employee ID, and other relevant identification information

4. Suspension Notification: Clear statement of contract suspension and its effective date

5. Legal Basis: Reference to relevant UAE Labor Law provisions and any applicable company policies

6. Suspension Period: Specified duration or conditions of the suspension period

7. Terms During Suspension: Clear outline of salary, benefits, and obligations during the suspension period

8. Return to Work: Conditions and process for resumption of work

9. Contact Information: Details for communication during the suspension period

10. Closing: Signature block for authorized signatory and company stamp

What sections are optional to include in a Contract Suspension Letter?

1. Force Majeure Details: Include when suspension is due to force majeure events, detailing the specific circumstances

2. Alternative Work Arrangements: Include when offering reduced hours or remote work options during suspension

3. Government Submissions: Include when suspension requires MOHRE notification or approval

4. Employee Acknowledgment: Include when mutual agreement is required or for documentation purposes

5. Benefits Continuation: Include detailed information about maintenance or suspension of specific benefits when complex benefit arrangements exist

What schedules should be included in a Contract Suspension Letter?

1. Employee Current Benefits Schedule: Detailed list of current benefits and their status during suspension

2. Supporting Documentation: Any required evidence supporting the basis for suspension (e.g., financial statements, force majeure evidence)

3. MOHRE Forms: Required government forms and submissions related to the contract suspension

4. Return to Work Protocol: Detailed procedures and conditions for resuming normal employment

Authors

Alex Denne

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

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




















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Relevant Industries

Construction

Oil and Gas

Hospitality

Retail

Manufacturing

Technology

Financial Services

Healthcare

Education

Professional Services

Real Estate

Transportation and Logistics

Tourism

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Management

Administration

Corporate Governance

Risk Management

Relevant Roles

HR Director

Legal Counsel

HR Manager

Compliance Officer

Employment Law Specialist

HR Business Partner

Legal Manager

Chief Human Resources Officer

Employee Relations Manager

Human Resources Coordinator

Legal Administrator

Compensation and Benefits Manager

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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