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Early Termination Of Employment Contract

Early Termination Of Employment Contract Template for United Arab Emirates

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Key Requirements PROMPT example:

Early Termination Of Employment Contract

"I need an Early Termination of Employment Contract for a mutual separation effective March 15, 2025, including enhanced severance benefits of 3 months' salary and continuation of medical insurance for 6 months."

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Document background
An Early Termination Of Employment Contract is a crucial document used when either the employer or employee wishes to end the employment relationship before its intended duration in the United Arab Emirates. This document is essential for ensuring compliance with UAE Federal Decree-Law No. 33 of 2021 and related employment regulations. It should be used whenever there is a mutual agreement to terminate employment early, or when either party initiates termination according to legal provisions. The document covers critical aspects including notice periods, final settlements, end of service gratuity calculations, handover requirements, and continuing obligations. It serves as both a legal record of the termination and a comprehensive agreement protecting all parties' interests while ensuring adherence to local labor laws. Particularly important in the UAE context, where employment relationships are strictly regulated, this document helps prevent future disputes and ensures proper documentation of the termination process.
Suggested Sections

1. Parties: Details of the employer and employee, including full legal names, addresses, and relevant identification numbers

2. Background: Brief context about the employment relationship, including original employment date, position, and reference to the original employment contract

3. Definitions: Key terms used in the agreement including 'Termination Date', 'Final Settlement', 'End of Service Benefits'

4. Termination Details: Specific details about the termination including the effective date and notice period requirements

5. Final Settlement: Breakdown of all financial entitlements including salary, end of service gratuity, accrued leave, and any other benefits

6. Handover Requirements: List of company property to be returned and work responsibilities to be handed over

7. Release and Waiver: Mutual release of claims and obligations post-termination

8. Continuing Obligations: Ongoing obligations such as confidentiality and intellectual property rights

9. Governing Law: Confirmation that the agreement is governed by UAE law

10. Execution: Signature blocks for both parties

Optional Sections

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

2. Non-Competition: Include if enforcing existing non-compete provisions from employment contract

3. Reference: Include if agreeing to provide employment references

4. Legal Fees: Include if there's an agreement about who bears the legal costs

5. Non-Disparagement: Include to prevent parties from making negative statements about each other

6. Immigration Status: Include for expatriate employees regarding visa cancellation and status

7. Severance Package: Include if offering additional payments beyond statutory requirements

Suggested Schedules

1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial elements of the settlement

2. Schedule 2 - Handover Checklist: Comprehensive list of items and responsibilities to be handed over

3. Schedule 3 - Company Property Register: List of all company property to be returned

4. Appendix A - Original Employment Contract: Copy of the original employment contract for reference

5. Appendix B - Release Form: Standard release form as required by UAE Labor Law

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Banking & Financial Services

Technology

Real Estate & Construction

Healthcare

Education

Retail & Consumer

Manufacturing

Professional Services

Hospitality & Tourism

Energy & Resources

Media & Entertainment

Transportation & Logistics

Telecommunications

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Compliance

People Operations

Employee Relations

Talent Management

Payroll

Relevant Roles

Chief Executive Officer

Managing Director

Department Head

HR Manager

Legal Counsel

Finance Manager

Operations Manager

Project Manager

Sales Manager

Marketing Manager

Technical Lead

Senior Engineer

Account Manager

Administrative Officer

Executive Assistant

Research Analyst

Software Developer

Business Development Manager

Customer Service Representative

Regional Manager

Industries
UAE Federal Decree-Law No. 33 of 2021 (UAE Labor Law): The primary legislation governing employment relationships in the UAE, which provides the fundamental framework for employment termination
Article 43 of UAE Labor Law: Specifies the minimum notice periods required for termination of employment contracts (minimum 30 days up to 90 days)
Article 51 of UAE Labor Law: Details the grounds for termination of employment contracts and legitimate reasons for termination by employer
Article 47 of UAE Labor Law: Outlines provisions regarding arbitrary termination and compensation
Articles 53-54 of UAE Labor Law: Governs the calculation and payment of end-of-service gratuity
Article 42 of UAE Labor Law: Regulates the procedures for contract termination and the obligations of both parties
Ministerial Resolution No. 47 of 2022: Provides detailed regulations about employment contract types and termination procedures under the new labor law
UAE Federal Decree-Law No. 13 of 2022: Contains provisions about unemployment insurance which may be relevant in termination scenarios
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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