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Mutual Agreement To Terminate Employment

Mutual Agreement To Terminate Employment Template for United Arab Emirates

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Key Requirements PROMPT example:

Mutual Agreement To Terminate Employment

"I need a Mutual Agreement to Terminate Employment for a UAE-based software developer who has agreed to an early departure from March 15, 2025, with immediate return of company property and standard final settlements as per UAE labor law."

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Document background
The Mutual Agreement To Terminate Employment is a crucial document used in the United Arab Emirates when both employer and employee agree to end their employment relationship amicably. This document is particularly relevant when parties wish to terminate employment outside standard notice periods or under mutually agreed terms different from the original employment contract. It must comply with UAE Federal Labor Law (Federal Decree-Law No. 33 of 2021) and requires registration with the Ministry of Human Resources and Emiratisation (MOHRE). The agreement typically includes comprehensive details about final settlements, end of service benefits, clearance procedures, and mutual releases, providing legal protection for both parties. It's especially useful in scenarios where a clean break is desired, or when special termination arrangements need to be documented.
Suggested Sections

1. Parties: Identification of the Employer and Employee, including full legal names, addresses, and relevant identification numbers

2. Background: Brief overview of the employment relationship, including original employment date and current position

3. Definitions: Key terms used in the agreement including 'Termination Date', 'Final Settlement', and other relevant definitions

4. Mutual Agreement to Terminate: Clear statement of mutual agreement to terminate the employment relationship and the effective termination date

5. Final Settlement: Details of all financial entitlements including salary, end of service gratuity, and other benefits

6. Release and Waiver: Mutual release of claims and obligations between parties post-termination

7. Return of Company Property: Requirements for returning company assets, documents, and other property

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

9. Execution: Signature blocks and execution requirements

Optional Sections

1. Confidentiality Obligations: Post-termination confidentiality requirements - include when employee had access to sensitive information

2. Non-Competition and Non-Solicitation: Post-termination restrictions - include when original employment contract contained these provisions

3. Outstanding Leave: Treatment of any accrued but unused leave - include when there is outstanding leave to be addressed

4. Visa and Immigration Status: Arrangements regarding employment visa cancellation - include for expatriate employees

5. Reference and Communications: Agreement on how future employment references will be handled - include when specifically requested

6. Continuation of Benefits: Any benefits to be continued post-termination - include when applicable

7. Assistance with Handover: Requirements for knowledge transfer and handover - include for senior or technical positions

Suggested Schedules

1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial entitlements and deductions

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

3. Schedule 3 - Outstanding Projects/Responsibilities: List of matters requiring handover or completion

4. Appendix A - Employee Clearance Form: Standard clearance form as required by UAE labor authorities

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Relevant Industries

Banking and Financial Services

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Relevant Teams

Human Resources

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Relevant Roles

Chief Executive Officer

Managing Director

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Financial Controller

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Research and Development Officer

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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