Document background
An Employment Settlement Agreement is used when an employer and employee in the UAE agree to terminate their employment relationship on mutually agreed terms. This document is crucial for protecting both parties' interests and ensuring compliance with UAE labor laws, particularly Federal Decree-Law No. 33 of 2021. It is commonly used in situations involving senior executives, redundancies, or when resolving employment disputes. The agreement typically includes provisions for financial settlements, statutory entitlements, confidentiality obligations, and release of claims. For expatriate employees, it also addresses visa cancellation requirements. The document must be carefully drafted to ensure enforceability under UAE law and often requires consideration of both mainland UAE and free zone regulations where applicable.
