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Mutual Termination Of Employment Template for United Arab Emirates

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Key Requirements PROMPT example:

Mutual Termination Of Employment

"I need a Mutual Termination of Employment agreement for a UAE-based technology company, with an immediate termination date of January 15, 2025, including specific provisions for the return of proprietary software and ongoing consultancy arrangements for 3 months post-termination."

Document background
The Mutual Termination of Employment agreement is utilized when both employer and employee in the UAE agree to end their employment relationship by mutual consent. This document is essential for compliance with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and ensures a clear record of the agreed termination terms. It typically includes provisions for final settlements, end-of-service gratuity calculations, handover requirements, and mutual releases. The agreement is particularly important in the UAE context where proper documentation of employment termination is crucial for visa cancellation, labor dispute prevention, and maintaining good standing with labor authorities. It provides both parties with legal certainty and helps avoid future disputes by clearly documenting all aspects of the separation.
Suggested Sections

1. Parties: Identification of the employer and employee, including all relevant registration/license numbers and Emirates ID details

2. Background: Brief description of the employment relationship, original employment date, and mutual decision to terminate

3. Definitions: Definitions of key terms used in the agreement, including 'Termination Date', 'Final Settlement', etc.

4. Termination of Employment: Clear statement of mutual agreement to terminate employment and the effective termination date

5. Final Settlement: Detailed breakdown of all payments due, including salary, end-of-service gratuity, and other entitlements

6. Return of Company Property: Requirements for returning company assets, documents, and equipment

7. Release and Waiver: Mutual release from claims and obligations, subject to terms of the agreement

8. Governing Law and Jurisdiction: Confirmation that UAE law governs the agreement and jurisdiction for disputes

Optional Sections

1. Non-Disclosure and Confidentiality: Required when there's a need to reinforce or extend confidentiality obligations post-employment

2. Non-Competition and Non-Solicitation: Include if continuing restrictions on employee's future activities are needed

3. Outstanding Leave: Include when there is unused annual leave to be calculated and settled

4. Continuation of Benefits: Required when certain benefits (like medical insurance) will continue for a specified period

5. Reference and Communications: Include when parties want to agree on how future employment references will be handled

6. Immigration Status: Required for expatriate employees to address visa cancellation and residence status

7. Cooperation: Include when ongoing cooperation is needed for handover or future inquiries

Suggested Schedules

1. Schedule 1 - Final Settlement Calculation: Detailed calculation of all financial entitlements including basic salary, end-of-service gratuity, and other benefits

2. Schedule 2 - Company Property Inventory: List of all company property to be returned by the employee

3. Schedule 3 - Outstanding Projects/Handover Notes: Details of work in progress and handover instructions

4. Appendix A - Original Employment Contract: Copy of the original employment contract for reference

5. Appendix B - Employee Clearance Form: Standard UAE ministry-compliant clearance form documenting return of assets and settlement of dues

Authors

Alex Denne

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

Relevant legal definitions





















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Relevant Industries

Banking & Financial Services

Technology

Real Estate

Construction

Healthcare

Retail

Manufacturing

Professional Services

Education

Hospitality

Oil & Gas

Telecommunications

Transportation & Logistics

Media & Entertainment

Government & Public Sector

Relevant Teams

Human Resources

Legal

Compliance

Senior Management

Administration

Employee Relations

Corporate Governance

Risk Management

Relevant Roles

HR Manager

HR Director

Legal Counsel

Chief Human Resources Officer

Employment Lawyer

HR Business Partner

Compliance Officer

Chief Legal Officer

HR Administrator

Recruitment Manager

Personnel Manager

Employee Relations Manager

HR Operations Manager

Legal Manager

Company Secretary

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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