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The Friendly Termination Letter is a crucial document used in the United Arab Emirates when both employer and employee agree to end their employment relationship by mutual consent. This document type is particularly relevant when parties wish to maintain positive professional relationships while ensuring legal compliance with UAE Federal Law No. 33 of 2021. The letter serves multiple purposes: it documents the mutual agreement, specifies the termination terms, outlines the final settlement details, and addresses post-employment obligations. The Friendly Termination Letter should be drafted carefully to include all essential elements required by UAE labor law, such as notice periods, end-of-service benefits calculations, and clearance procedures. It's commonly used during company restructuring, when employees pursue new opportunities, or in situations where both parties agree that ending the employment relationship is in their best interests.

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

2. Employee Details: Full name, employee ID, position, and department of the employee

3. Subject Line: Clear indication that this is a mutual/friendly termination letter

4. Confirmation of Mutual Agreement: Statement confirming that both parties have agreed to terminate the employment relationship amicably

5. Last Working Day: Clear specification of the final working day and any applicable notice period

6. Final Settlement: Overview of final settlement including salary, end-of-service benefits, and other entitlements as per UAE Labor Law

7. Company Property: Statement regarding return of company property and settlement of any outstanding dues

8. Clearance Process: Details of the clearance process and requirements

9. Acknowledgment: Space for both parties to acknowledge and sign the letter