Mutual Release Agreement Employment

Mutual Release Agreement Employment Template for United Arab Emirates

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Key Requirements PROMPT example:

"I need a Mutual Release Agreement Employment under UAE law for a senior software developer who is leaving amicably to join a competitor on March 1, 2025, with specific focus on protecting our intellectual property and including a non-disparagement clause."

Document background

The Mutual Release Agreement Employment is a critical document used in the United Arab Emirates when formally concluding an employment relationship with mutual assurances against future claims. It is particularly relevant in situations where both employer and employee seek a clean break and legal certainty regarding the end of their professional relationship. The agreement must comply with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and typically includes comprehensive details about final settlements, end-of-service gratuity calculations, and specific releases from various types of potential claims. This document is especially important in the UAE context where employment relationships are heavily regulated, and proper documentation of termination terms is crucial for both legal compliance and risk management. The agreement serves to prevent future disputes by clearly documenting the terms of separation and mutual commitments while ensuring all legal requirements under UAE jurisdiction are met.

Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration/identification numbers

2. Background: Brief history of the employment relationship, including start date, position, and context for the mutual release

3. Definitions: Key terms used throughout the agreement, including 'Claims', 'Effective Date', and other relevant definitions

4. Acknowledgment of Employment Termination: Confirmation of employment termination date and circumstances

5. Consideration: Details of any payments or benefits being provided as consideration for the release

6. Mutual Release of Claims: Comprehensive mutual release of all claims, rights, and causes of action between the parties

7. Tax and Legal Implications: Statement regarding tax responsibilities and legal implications of the agreement

8. Non-Admission of Liability: Statement that the agreement does not constitute admission of wrongdoing by either party

9. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts for dispute resolution

10. Entire Agreement: Statement that this agreement represents the entire understanding between parties

11. Execution: Signature blocks and execution requirements

Optional Sections

1. Confidentiality Obligations: Ongoing confidentiality requirements, used when sensitive information was accessed during employment

2. Non-Disparagement: Mutual agreements not to make negative statements, used in sensitive terminations

3. Return of Company Property: Detailed section about return of company assets, used when employee had access to significant company property

4. Continuing Obligations: Reference to surviving obligations from employment contract, used when certain restrictions continue post-employment

5. Reference and Communications: Agreement on how future employment references will be handled, used when specifically negotiated

6. Social Media and Professional Profiles: Requirements for updating professional profiles, used when employee had significant public-facing role

7. Cooperation in Transition: Terms for employee assistance in transition period, used when knowledge transfer is crucial

Suggested Schedules

1. Schedule 1 - Settlement Payment Details: Breakdown of all payments to be made, including final salary, end of service gratuity, and any additional settlements

2. Schedule 2 - Released Claims: Detailed list of specific claims being released by both parties

3. Schedule 3 - Company Property Inventory: List of all company property to be returned

4. Appendix A - Employee Benefits Summary: Summary of any continuing or terminating benefits

5. Appendix B - Calculation of Final Entitlements: Detailed calculations of all final payments and entitlements under UAE Labor Law

Authors

Alex Denne

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Banking and Financial Services

Technology

Real Estate

Construction

Healthcare

Education

Retail

Professional Services

Manufacturing

Hospitality

Oil and Gas

Telecommunications

Media and Entertainment

Transportation and Logistics

Consumer Goods

Relevant Teams

Human Resources

Legal

Finance

Executive Leadership

Operations

Administration

Compliance

Risk Management

Corporate Governance

Employee Relations

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

Human Resources Director

Financial Controller

Technical Director

Operations Manager

Sales Director

Marketing Manager

Legal Counsel

Account Manager

Software Engineer

Business Development Manager

Administrative Manager

Regional Manager

Executive Assistant

Consultant

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Authors

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