Terminated Employee Owes Company Money Letter

Terminated Employee Owes Company Money Letter Template for United Arab Emirates

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Key Requirements PROMPT example:

"I need a Terminated Employee Owes Company Money Letter for a Dubai-based IT company to recover AED 50,000 in training costs from a software developer who resigned before completing their two-year commitment, with payment required by March 15, 2025."

Document background

The Terminated Employee Owes Company Money Letter is a critical document used in the United Arab Emirates when a former employee has outstanding financial obligations to their previous employer following the termination of their employment. These obligations might arise from various sources such as training costs, advance salary payments, damaged or unreturned company property, or other legitimate business expenses. The document must comply with UAE Federal Law No. 33 of 2021 and related regulations governing employment relationships and debt recovery. It serves as both a formal demand for payment and a potential piece of evidence in legal proceedings if the matter requires court intervention. The letter should be issued promptly after employment termination and must clearly document the debt's origin, amount, and expected payment terms while maintaining professional tone and legal compliance.

Suggested Sections

1. Recipient Details: Full name, address, and employment ID (if applicable) of the terminated employee

2. Letter Reference: Date, reference number, and subject line clearly indicating this is regarding money owed post-termination

3. Debt Origin: Clear description of how the debt arose (e.g., training costs, advance salary, equipment costs, etc.)

4. Amount Details: Precise statement of the total amount owed, including any breakdown of individual components if applicable

5. Legal Basis: Reference to relevant employment contract clauses, company policies, or agreements that establish the debt obligation

6. Payment Terms: Clear statement of expected payment timeline and acceptable payment methods

7. Consequences of Non-Payment: Professional explanation of legal steps the company may take if payment is not received

8. Contact Information: Details of the person/department to contact for payment arrangements or queries

Optional Sections

1. Payment Plan Option: Include when company is willing to consider installment payments - outline potential terms

2. Settlement Offer: Include when company is willing to accept a reduced amount for immediate payment

3. Previous Communications: Reference to any prior attempts to recover the debt or relevant communications

4. Exit Interview Reference: Include if the debt was acknowledged during exit interview

5. Final Settlement Offset: Include if any amounts were already offset against final settlement

Suggested Schedules

1. Statement of Account: Detailed breakdown of the debt amount including dates and specific items

2. Supporting Documents: Copies of relevant agreements, training bonds, advance payment receipts, etc.

3. Payment History: Record of any partial payments made or attempted recoveries

4. Acknowledgment Forms: Copies of any forms where employee acknowledged the debt

5. Final Settlement Statement: Copy of final settlement showing any amounts already offset against the debt

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 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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