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Mutual Termination Agreement

Mutual Termination Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Mutual Termination Agreement

"I need a Mutual Termination Agreement for a UAE-based technology company, where a senior software developer is leaving amicably on March 15, 2025, with specific provisions for ongoing project handover and protection of intellectual property."

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Document background
The Mutual Termination Agreement is essential when both employer and employee in the UAE agree to end their employment relationship by mutual consent. This document is particularly relevant when parties wish to document an amicable separation and clearly define their respective rights and obligations upon termination. It must comply with UAE Federal Law No. 8 of 1980 and its amendments, addressing crucial elements such as end-of-service gratuity, notice period arrangements, and final settlements. The agreement is commonly used during corporate restructuring, voluntary departures, or when both parties agree that continuing the employment relationship is no longer beneficial. It provides legal protection for both parties by documenting the mutually agreed terms and conditions of the separation, helping prevent future disputes and ensuring all statutory requirements under UAE labor law are satisfied.
Suggested Sections

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

2. Background: Brief history of employment relationship, reference to original employment contract, and mutual decision to terminate

3. Definitions: Key terms used throughout the agreement, including 'Termination Date', 'Final Settlement', etc.

4. Termination of Employment: Clear statement of mutual agreement to terminate and effective termination date

5. Final Settlement: Comprehensive breakdown of all financial settlements, including salary, end-of-service gratuity, and other benefits

6. Release and Waiver: Mutual release from claims and obligations post-termination

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

8. Confidentiality: Ongoing obligations regarding confidential information

9. References: Agreement on the nature and content of employment references

10. Governing Law: Specification of UAE law as governing law and jurisdiction

11. Entire Agreement: Standard integration clause confirming this agreement supersedes previous arrangements regarding termination

Optional Sections

1. Handover: Detailed handover process for ongoing projects or responsibilities - include when employee has key operational roles

2. Non-Competition: Post-employment restrictions - include if original contract had non-compete provisions

3. Intellectual Property: Specific IP provisions - include when employee was involved in creative or technical work

4. Outstanding Leave: Calculation and settlement of unused leave - include if there is outstanding leave to be addressed

5. Continuation of Benefits: Any benefits extending beyond termination date - include if applicable (e.g., medical insurance)

6. Immigration Status: Provisions regarding visa and immigration status - include for expatriate employees

7. Stock Options/Share Rights: Treatment of any share-based compensation - include if employee has such benefits

Suggested Schedules

1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial elements of the settlement

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

3. Schedule 3 - Handover Checklist: Detailed list of tasks and documents for handover

4. Appendix A - Original Employment Contract: Copy of the original employment contract for reference

5. Appendix B - Employee Acknowledgment: Formal acknowledgment of receipt of all dues and completion of handover

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
Relevant legal definitions





















Clauses
























Relevant Industries

Banking & Financial Services

Technology

Real Estate & Construction

Healthcare

Retail & Consumer Goods

Manufacturing

Professional Services

Education

Hospitality & Tourism

Energy & Resources

Media & Entertainment

Telecommunications

Transport & Logistics

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Senior Management

Operations

Administration

Corporate Governance

Risk Management

Relevant Roles

HR Director

HR Manager

Legal Counsel

HR Business Partner

Employee Relations Manager

Compliance Officer

Department Manager

Chief Executive Officer

Chief Human Resources Officer

Legal Director

HR Administrator

Recruitment Manager

Operations Manager

General Manager

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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