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Severance And Release Agreement

Severance And Release Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Severance And Release Agreement

"I need a Severance and Release Agreement for a senior IT manager who is being made redundant due to department restructuring, with termination effective March 15, 2025; the agreement should include standard non-compete provisions for the UAE technology sector and address the employee's unvested stock options."

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Document background
The Severance and Release Agreement is a crucial document used in the United Arab Emirates when formally ending an employment relationship. It serves as a comprehensive settlement agreement that complies with UAE Federal Decree-Law No. 33 of 2021 and related employment regulations, protecting both employer and employee interests during the separation process. This document is typically used when an employment relationship is being terminated by mutual agreement, redundancy, or as part of a negotiated exit. It details all financial settlements, including end-of-service gratuity, outstanding salary, and any additional compensation, while also addressing post-employment obligations such as confidentiality and non-competition. The agreement must be carefully drafted to ensure enforceability under UAE law, often requiring both English and Arabic versions, and should address specific requirements related to visa cancellation and local labor law compliance.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identifiers

2. Background: Brief history of employment relationship, including start date, position, and reason for separation

3. Definitions: Key terms used throughout the agreement, including 'Effective Date', 'Separation Date', 'Settlement Amount', etc.

4. Termination of Employment: Formal statement of employment termination, including last working day and final status

5. Settlement Payments: Detailed breakdown of all payments, including salary, end-of-service gratuity, and additional settlement amounts as per UAE Labor Law

6. Employee Benefits: Treatment of benefits, insurance coverage, and any continuation of benefits post-employment

7. Company Property: Requirements for return of company property, documents, and confidential information

8. Release of Claims: Mutual release of all claims, disputes, and causes of action between parties

9. Confidentiality: Ongoing obligations regarding confidential information and trade secrets

10. Non-Disparagement: Mutual agreements not to make negative statements about each other

11. Governing Law: Specification of UAE law as governing law and jurisdiction for disputes

12. General Provisions: Standard clauses including entire agreement, amendments, severability, and counterparts

Optional Sections

1. Non-Competition: Restrictions on working for competitors, used when employee had access to sensitive information or significant client relationships

2. Non-Solicitation: Restrictions on soliciting employees or customers, included when employee had significant client or employee relationships

3. Cooperation: Requirements for employee to assist with transition or future matters, included for senior positions

4. Reference: Terms regarding future employment references, included when specifically negotiated

5. Visa and Immigration: Provisions regarding visa cancellation and immigration status, included for expatriate employees

6. Share Options/Awards: Treatment of outstanding equity compensation, included if employee participated in share schemes

7. Legal Fees: Provisions for payment of legal fees, included if agreed to cover employee's legal costs

8. Reaffirmation: Requirement to reaffirm release at termination date, included for delayed terminations

Suggested Schedules

1. Schedule 1 - Payment Calculation: Detailed calculation of all payments including basic salary, notice pay, gratuity, and other entitlements

2. Schedule 2 - Benefits Summary: List of benefits and their treatment post-termination

3. Schedule 3 - Company Property: Itemized list of company property to be returned

4. Appendix A - Release Declaration: Formal release declaration in both English and Arabic

5. Appendix B - Confidential Information: Detailed description of confidential information covered by ongoing obligations

6. Appendix C - Certificate of Service: Draft certificate of service as required by UAE Labor Law

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

alex.den.21@genieai.co
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Relevant Industries

Banking & Financial Services

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Retail & Consumer Goods

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Relevant Teams

Human Resources

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Finance

Operations

Executive Leadership

Administration

Information Technology

Sales

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Customer Service

Research & Development

Compliance

Risk Management

Project Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

General Manager

Department Head

Senior Manager

Manager

Supervisor

Executive

Professional Staff

Administrative Staff

Technical Specialist

Sales Representative

Operations Staff

Project Manager

Account Manager

Human Resources Manager

Legal Counsel

Financial Analyst

Software Developer

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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