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Termination Of Services Letter for United Arab Emirates

Termination Of Services Letter Template for United Arab Emirates

A Termination of Services Letter is a formal document used in the United Arab Emirates to officially end an employment relationship between an employer and employee. The document must comply with UAE Federal Decree-Law No. 33 of 2021 (UAE Labor Law) and relevant ministerial resolutions. It includes essential information such as the termination date, notice period, final settlement details, and end-of-service benefits calculation. The letter serves as a legal record of employment termination and outlines both parties' obligations during the transition period, including the handling of company property, confidential information, and visa status for expatriate employees.

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What is a Termination Of Services Letter?

The Termination Of Services Letter is a crucial document in UAE employment relations, governed by UAE Federal Decree-Law No. 33 of 2021 and associated regulations. It is used when an employer needs to formally terminate an employee's services, whether through resignation, end of contract, or termination by the employer. The document must carefully comply with UAE labor regulations regarding notice periods, end-of-service benefits, and proper termination procedures. It serves multiple purposes: officially documenting the termination, outlining the final settlement terms, specifying the notice period, addressing company property return, and handling visa-related matters for expatriate employees. The letter's format and content may vary depending on the free zone jurisdiction (DIFC or ADGM) or mainland UAE location, but must always maintain compliance with relevant employment laws.

What sections should be included in a Termination Of Services Letter?

1. Letter Header: Company letterhead, date, reference number, and addressee details

2. Subject Line: Clear indication that this is a termination of services letter

3. Opening Statement: Reference to employment contract and formal notice of termination

4. Termination Details: Effective date of termination and notice period details

5. Final Settlement: Information about final salary, end-of-service gratuity, and other entitlements

6. Company Property: Instructions regarding return of company property and handover of work

7. Acknowledgment: Space for employee signature acknowledging receipt of the letter

What sections are optional to include in a Termination Of Services Letter?

1. Garden Leave: Include when employee is required to serve notice period away from office

2. Post-termination Restrictions: Reference to existing non-compete or confidentiality obligations

3. Reason for Termination: Include when termination is for cause or when specifically required

4. References: Information about company's policy on providing references

5. Exit Interview: Details of exit interview arrangements if required

6. Visa/Immigration Status: Include for expatriate employees regarding visa cancellation process

What schedules should be included in a Termination Of Services Letter?

1. Final Settlement Calculation: Detailed breakdown of final payment including salary, gratuity, and other benefits

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

3. Benefits Summary: Summary of any continuing benefits or insurance coverage post-termination

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

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Cost

Free to use
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Banking and Financial Services

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Human Resources

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