Separation Agreement And Release Template for United Arab Emirates

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Key Requirements PROMPT example:

Separation Agreement And Release

"I need a Separation Agreement and Release for our Dubai-based Chief Technology Officer who will be leaving on March 15, 2025, including provisions for ongoing consultancy services, share options, and a 12-month non-compete clause for the MENA region."

Document background
The Separation Agreement and Release is a crucial document used in the United Arab Emirates when formally ending an employment relationship by mutual agreement. It serves as a comprehensive record of the termination terms while providing legal protection for both employer and employee. The agreement must comply with UAE Federal Decree-Law No. 33 of 2021 (UAE Labor Law) and considers various aspects including end-of-service gratuity calculations, notice periods, and final settlements. It typically includes provisions for confidentiality, non-compete restrictions (where applicable), and release of claims, all tailored to meet UAE legal requirements. For expatriate employees, it also addresses visa-related matters. The document is particularly important in complex separations or senior-level departures where clear documentation of obligations and mutual releases is essential for risk management.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief history of employment relationship, reason for separation, and purpose of agreement

3. Definitions: Key terms used throughout the agreement, including Effective Date, Termination Date, and Confidential Information

4. Termination of Employment: Formal statement of employment termination, including last working day and immediate obligations

5. Final Settlement: Details of final payment including salary, notice period, end-of-service gratuity as per UAE Labor Law

6. Release of Claims: Mutual release of claims and waiver of rights, subject to UAE law restrictions

7. Company Property: Requirements for return of company property and documents

8. Confidentiality Obligations: Ongoing confidentiality obligations post-employment

9. References and Communications: Agreement on handling of employment references and internal/external communications

10. Tax and Legal Implications: Statement on tax treatment and legal implications of the settlement

11. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts for disputes

12. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Non-Compete Obligations: Include when there are post-employment restrictions on competitive activities, ensuring compliance with UAE labor law restrictions

2. Non-Solicitation: Include when restricting employee from soliciting company's employees or customers

3. Continuation of Benefits: Include when certain benefits will continue post-termination

4. Cooperation in Transition: Include when employee's assistance is needed for knowledge transfer or handover

5. Stock Options/Share Rights: Include when employee has outstanding equity compensation

6. Visa and Immigration: Include for expatriate employees regarding visa cancellation and repatriation

7. Garden Leave: Include when employee will be on paid leave during notice period

8. Legal Fees: Include when addressing payment of legal fees for agreement review

Suggested Schedules

1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all final payments including salary, gratuity, and other entitlements

2. Schedule 2 - Company Property List: Itemized list of company property to be returned

3. Schedule 3 - Confidential Information: Detailed description of what constitutes confidential information

4. Appendix A - Release Form: Formal release of claims document to be signed separately

5. Appendix B - Non-Compete Terms: Detailed terms of non-compete obligations if applicable

6. Appendix C - Benefits Continuation Details: Specification of any benefits that continue post-termination

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

Relevant legal definitions
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Banking & Financial Services

Technology

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Relevant Teams

Human Resources

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Finance

Compliance

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Executive Leadership

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Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

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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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