Document background
The Notice of Retrenchment Letter is a crucial document used in the UAE business environment when companies need to reduce their workforce due to economic, structural, or operational reasons. This document, governed by UAE Federal Decree-Law No. 33 of 2021, serves as an official communication of employment termination while ensuring compliance with local labor laws. The letter must be carefully drafted to include mandatory elements such as notice periods (ranging from 30 to 90 days based on service length), end-of-service gratuity calculations, and final settlement details. It should also address the handling of company property, confidential information, and any additional support measures offered to the affected employee. The document is particularly important in the UAE context where specific procedural requirements must be followed to ensure the termination is legally sound and professionally handled.
