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Employee Mutual Separation Agreement

Employee Mutual Separation Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Employee Mutual Separation Agreement

"I need an Employee Mutual Separation Agreement for a senior executive in our Dubai tech company, including provisions for unvested stock options, a 3-month garden leave period starting March 2025, and ongoing consultancy arrangements for knowledge transfer."

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Document background
The Employee Mutual Separation Agreement is a crucial document used in the United Arab Emirates when an employer and employee mutually agree to end their employment relationship amicably. This document, governed by UAE Labor Law (Federal Decree-Law No. 33 of 2021), serves as a comprehensive record of the separation terms, protecting both parties' interests while ensuring compliance with local regulations. It typically includes detailed provisions for final settlements, end of service benefits, confidentiality obligations, and mutual releases. The agreement is particularly valuable in situations where a clean break is desired, helping prevent future disputes by clearly documenting all aspects of the termination, including financial settlements and ongoing obligations. It must be drafted in accordance with UAE labor law requirements and should consider any specific emirate-level regulations where applicable.
Suggested Sections

1. Parties: Identification of the employer and employee, including all relevant registration/license numbers for the employer and Emirates ID/passport details for the employee

2. Background: Brief description of the employment relationship, including start date, position, and mutual decision to terminate

3. Definitions: Key terms used throughout the agreement including 'Termination Date', 'Final Settlement', etc.

4. Termination of Employment: Formal statement of mutual agreement to terminate, specifying the last working day and immediate effects

5. Final Settlement: Detailed breakdown of all payments including salary, end of service gratuity, accrued leave, and any other entitlements

6. Company Property: Requirements for return of all company property, documents, and data

7. Confidentiality: Ongoing obligations regarding confidential information and trade secrets

8. Full and Final Settlement: Mutual release and discharge of all claims and obligations

9. Governing Law and Jurisdiction: Specification of UAE law as governing law and UAE courts' jurisdiction

10. Execution: Signature blocks and execution formalities

Optional Sections

1. Non-Competition and Non-Solicitation: Include when the employee had access to sensitive information or key clients, specifying restricted activities and duration

2. References: Include when parties agree on the content and format of employment references

3. Assistance with Handover: Include when specific handover procedures or post-termination assistance is required

4. Medical Insurance: Include when discussing continuation or termination of medical insurance coverage

5. Garden Leave: Include when employee will be placed on garden leave before final termination date

6. Visa and Immigration: Include for expatriate employees, addressing visa cancellation procedures and timing

7. Stock Options/Share Awards: Include when employee has outstanding equity-based compensation

8. Announcement: Include when parties agree on how the departure will be communicated internally and externally

Suggested Schedules

1. Schedule 1 - Payment Calculation: Detailed breakdown of all financial entitlements and calculations

2. Schedule 2 - Company Property Checklist: List of all company property to be returned

3. Schedule 3 - Handover Report Template: Template for documenting handover of responsibilities and ongoing projects

4. Appendix A - Release Form: Specific form of release to be signed upon receipt of final settlement

5. Appendix B - Certificate of Service Template: Template for the agreed format of employment certificate

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 legal definitions
Agreement
Company
Confidential Information
Effective Date
Employee
End of Service Benefits
Final Settlement
Full and Final Release
Gratuity
Intellectual Property Rights
Last Working Day
Notice Period
Outstanding Obligations
Parties
Restricted Business
Separation Payment
Termination Date
UAE
Unvested Benefits
Working Hours
Company Property
Garden Leave
Group Companies
Medical Insurance
Personal Data
Release Date
Restricted Period
Settlement Sum
Salary
Trade Secrets
Visa Cancellation Date
Relevant Industries

Banking and Financial Services

Technology

Oil and Gas

Real Estate and Construction

Healthcare

Retail and Consumer Goods

Professional Services

Manufacturing

Hospitality and Tourism

Education

Telecommunications

Media and Entertainment

Transportation and Logistics

Relevant Teams

Human Resources

Legal

Finance

Operations

Senior Management

Administration

Compliance

Risk Management

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

Department Head

Senior Manager

Project Manager

Sales Director

Technical Lead

HR Manager

Financial Controller

Operations Manager

Business Development Manager

Account Manager

Marketing Manager

Software Engineer

Legal Counsel

Research Scientist

Professor

Consultant

Industries
UAE Labor Law (Federal Decree-Law No. 33 of 2021): The primary legislation governing employment relationships in the UAE, including termination provisions, notice periods, and end of service benefits calculations
UAE Federal Law No. 6 of 1973: Law regarding immigration and residence, relevant for handling visa cancellation procedures following employment termination
UAE Civil Code (Federal Law No. 5 of 1985): Contains provisions regarding contract formation, mutual consent, and legal capacity of parties to enter into agreements
UAE Ministry of Human Resources and Emiratisation (MOHRE) Regulations: Administrative regulations governing employment termination procedures and required notifications to authorities
UAE Federal Law No. 8 of 1980: Contains provisions regarding non-competition clauses and confidentiality obligations that may need to be addressed in the separation agreement
UAE Federal Law No. 7 of 1999: Pension and social security law relevant for UAE national employees, if applicable
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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