Severance Agreement Release Of Claims Template for United Arab Emirates

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Key Requirements PROMPT example:

Severance Agreement Release Of Claims

"I need a Severance Agreement Release Of Claims for our Dubai-based Chief Technology Officer who is leaving with significant unvested stock options and ongoing projects, requiring extended post-termination cooperation and strict non-compete provisions for 12 months."

Document background
The Severance Agreement Release Of Claims is a critical document used in the UAE when formally terminating an employment relationship through mutual agreement or unilateral decision. It is particularly important in the UAE context due to the specific requirements of Federal Decree-Law No. 33 of 2021 and related employment regulations. The document serves multiple purposes: it confirms the termination terms, documents the payment of all entitlements including end of service gratuity and other benefits, and secures a release of potential claims from both parties. This agreement is especially relevant when dealing with senior executives, sensitive departures, or situations requiring clear documentation of separation terms. It must be carefully drafted to ensure enforceability under UAE law while protecting both employer and employee interests through comprehensive yet clear provisions.
Suggested Sections

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

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

3. Definitions: Key terms used throughout the agreement, including 'Effective Date', 'Separation Date', 'Released Claims', etc.

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

5. Severance Payment: Details of severance payment, calculation method, payment timing, and tax implications

6. End of Service Benefits: Calculation and payment of statutory end of service gratuity under UAE Labor Law

7. Release of Claims: Comprehensive release of legal claims by employee against employer and related entities

8. Company Property: Requirements for return of company property and confidential information

9. Confidentiality: Obligations regarding confidentiality of agreement terms and company information

10. Non-Disparagement: Mutual obligations to refrain from making negative statements

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

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

Optional Sections

1. Non-Competition and Non-Solicitation: Post-employment restrictions, used when protecting business interests is crucial

2. Reference and Communications: Terms regarding employment references and internal/external communications about departure

3. Continuing Benefits: Any benefits extending beyond termination date, such as health insurance

4. Cooperation: Terms for post-employment assistance with transitions or legal matters

5. Immigration Status: Provisions regarding visa status and obligations, required for expatriate employees

6. Equity/Share Options: Treatment of any outstanding equity or share options, if applicable

7. Reaffirmation: Provision for employee to reaffirm release at time of payment receipt

8. Legal Fees: Provisions regarding payment of legal fees for agreement review

Suggested Schedules

1. Schedule A - Payment Calculation: Detailed breakdown of severance payment and statutory benefits calculation

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

3. Schedule C - Benefits Summary: Summary of benefits and their treatment post-termination

4. Appendix 1 - Release of Claims Detail: Comprehensive list of types of claims being released

5. Appendix 2 - Continuing Obligations: Detailed list of obligations that survive termination

6. Appendix 3 - Certificate of Service: Draft certificate of service as required under 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

Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Technology

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Healthcare

Retail and Consumer Goods

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Manufacturing

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Free Zone Companies

Relevant Teams

Human Resources

Legal

Finance

Executive Leadership

Operations

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Compliance

Risk Management

Corporate Secretariat

Employee Relations

Relevant Roles

Chief Executive Officer

Managing Director

Department Head

Senior Manager

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Senior Engineer

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Industries
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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