Document background
The Employment Promissory Note is commonly used in UAE business relationships where employers need to secure financial investments made in employees, such as training costs, educational sponsorships, or advance payments. This document type combines the formal requirements of a promissory note under UAE Commercial Transactions Law with specific employment-related considerations. It serves as a security instrument that creates a legally enforceable obligation for the employee to repay specified amounts under defined circumstances. The document must comply with both UAE labor laws and commercial regulations, requiring careful drafting to ensure enforceability. Typically, an Employment Promissory Note includes specific payment terms, conditions for enforcement, and clear reference to the underlying employment relationship, often requiring notarization for additional legal security.
