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Termination Letter Due To Redundancy for United Arab Emirates

Termination Letter Due To Redundancy Template for United Arab Emirates

A formal document issued under UAE Labor Law (Federal Decree-Law No. 33 of 2021) that officially terminates an employee's employment contract due to redundancy. This document must comply with UAE labor regulations regarding notice periods, end-of-service benefits, and procedural requirements. It includes essential information about the termination decision, notice period, final settlement calculations, and exit procedures. The letter serves both as a legal document and a formal communication tool, ensuring transparency in the redundancy process while protecting both employer and employee rights under UAE law.

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What is a Termination Letter Due To Redundancy?

The Termination Letter Due To Redundancy is a crucial document used when an organization needs to reduce its workforce due to business restructuring, economic conditions, or organizational changes in the UAE. It must be drafted in accordance with UAE Labor Law (Federal Decree-Law No. 33 of 2021), which provides specific requirements for redundancy situations. The document serves multiple purposes: it formally communicates the termination decision, outlines the notice period and final entitlements, details the handover process, and ensures compliance with local labor regulations. This letter is particularly important in the UAE context as it must demonstrate that the redundancy is genuine and based on valid business reasons to avoid claims of arbitrary dismissal. It should include specific references to UAE labor law provisions, detail the calculation of end-of-service benefits, and clearly outline the visa cancellation process.

What sections should be included in a Termination Letter Due To Redundancy?

1. Letter Header: Company letterhead, date, reference number, and employee details including position and employee ID

2. Subject Line: Clear indication that this is a notice of termination due to redundancy

3. Opening Statement: Professional opening acknowledging the difficulty of the situation and stating the purpose of the letter

4. Redundancy Explanation: Brief explanation of the business circumstances leading to the redundancy decision

5. Notice Period Details: Specification of the notice period as per UAE Labor Law and the last working day

6. Final Settlement Information: Overview of entitlements including salary, end-of-service gratuity, and other benefits

7. Handover Requirements: Instructions regarding the handover of company property and work responsibilities

8. Exit Procedures: Information about visa cancellation, final settlement processing, and clearance procedures

9. Closing Statement: Expression of gratitude for service and good wishes for the future

What sections are optional to include in a Termination Letter Due To Redundancy?

1. Redeployment Efforts: Include when the company has attempted to find alternative positions - helps demonstrate fair treatment

2. Garden Leave: Include when the employee will be placed on garden leave during the notice period

3. Additional Benefits: Include when offering additional benefits beyond statutory requirements (e.g., outplacement services)

4. Reference Provision: Include when the company agrees to provide employment references

5. Non-Compete Reminder: Include when the employee is bound by existing non-compete clauses

6. Continuation of Medical Insurance: Include details if medical insurance will be extended beyond the termination date

What schedules should be included in a Termination Letter Due To Redundancy?

1. Final Settlement Calculation: Detailed breakdown of all financial entitlements including salary, gratuity, and other benefits

2. Handover Checklist: List of company property to be returned and tasks to be completed before departure

3. Employee Acknowledgment Form: Form for the employee to sign acknowledging receipt of the termination letter

4. Exit Interview Form: Optional form for gathering feedback and ensuring proper closure

5. Benefits Summary: Detailed explanation of any continuing benefits or special arrangements

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

Publisher

Ƶ

Document Type

Termination Letter

Cost

Free to use
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Banking & Financial Services

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Human Resources

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Employee Relations

People Operations

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Relevant Roles

HR Director

HR Manager

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HR Business Partner

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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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