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Severance Pay Non Compete Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Severance Pay Non Compete Agreement

"I need a Severance Pay Non Compete Agreement for a senior software developer in Dubai, with 12 months non-compete within the UAE tech sector and a severance package of 6 months' salary paid in installments, effective March 1, 2025."

Document background
The Severance Pay Non Compete Agreement is a critical document used in the UAE when an employment relationship is terminated and the employer wishes to protect its business interests while ensuring compliance with local labor laws. This agreement is particularly relevant in situations where employees have had access to sensitive information, key clients, or strategic business knowledge. The document must comply with UAE Federal Law No. 33 of 2021, which sets specific parameters for non-compete clauses, including a maximum duration of two years, and provides detailed requirements for end-of-service benefits calculations. It's commonly used for senior positions, technical roles, and sales positions where the employee's future employment could pose a competitive threat to the former employer.
Suggested Sections

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

2. Background: Brief context of the employment relationship, reason for termination, and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including 'Restricted Business', 'Territory', 'Confidential Information', etc.

4. Termination of Employment: Confirmation of employment termination date and final working day

5. Severance Payment: Details of the severance package, calculation method, payment schedule, and conditions

6. Non-Compete Obligations: Specific restrictions on post-employment activities, including duration and geographical scope

7. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers

8. Confidentiality: Obligations regarding confidential information and trade secrets

9. Return of Company Property: Requirements for returning company assets and documents

10. Tax and Legal Compliance: Provisions ensuring compliance with UAE tax and labor laws

11. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Garden Leave: Used when the employee is required to serve their notice period away from the workplace

2. Additional Benefits: Include when providing additional benefits beyond standard severance (e.g., health insurance extension, outplacement services)

3. Share Options/Equity: Required when dealing with existing employee share schemes or equity arrangements

4. International Implications: Include for employees with international roles or when the agreement needs to consider multiple jurisdictions

5. Training Costs Repayment: Include when there are outstanding training costs to be addressed

6. Ongoing Cooperation: Used when employee's assistance may be needed for transition or future matters

Suggested Schedules

1. Schedule 1 - Severance Calculation: Detailed breakdown of severance pay calculation including basic salary, allowances, and other benefits

2. Schedule 2 - Restricted Territory: Detailed map or list of geographical areas covered by non-compete restrictions

3. Schedule 3 - Restricted Activities: Specific list of prohibited business activities and competitors

4. Schedule 4 - Company Property Checklist: Itemized list of company property to be returned

5. Appendix A - Acknowledgment Form: Form for employee to acknowledge receipt of final payments and return of company property

6. Appendix B - Confidential Information: Detailed list of types of confidential information covered by the agreement

Authors

Alex Denne

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

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Relevant Roles

Chief Executive Officer

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Industries






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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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