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Ending Services Letter for United Arab Emirates

Ending Services Letter Template for United Arab Emirates

A formal document issued under UAE Labor Law (Federal Decree-Law No. 33 of 2021) that officially confirms the termination of employment relationship between an employer and employee. The letter outlines the termination details, final settlement calculations, end of service benefits, and other relevant terms regarding the conclusion of employment. It serves as a crucial legal document that protects both parties' interests and ensures compliance with UAE employment regulations, including proper documentation of notice periods, final payments, and outstanding obligations.

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What is a Ending Services Letter?

The Ending Services Letter is a mandatory document under UAE employment law that formalizes the termination of an employment relationship. It must be issued when an employee's service with a company comes to an end, whether through resignation, termination, or mutual agreement. The document serves multiple purposes: it confirms the last working day, documents the final settlement terms, outlines the end of service benefits calculation as per UAE Labor Law, and addresses the handling of company property and outstanding obligations. This letter is crucial for compliance with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and helps prevent future disputes by clearly documenting all aspects of the employment termination. It also serves as an important reference for visa cancellation procedures for expatriate employees and final settlement processing.

What sections should be included in a Ending Services Letter?

1. Letter Header: Company letterhead, date, reference number, and employee details

2. Subject Line: Clear indication that this is an Ending Services Letter

3. Acknowledgment of Service: Recognition of employment period and position held

4. Termination Details: Last working day, notice period details, and reason for termination if applicable

5. Final Settlement Information: Overview of final payment including salary, end of service benefits, and other entitlements

6. Company Property: List of company items to be returned before final settlement

7. Outstanding Obligations: Any pending tasks or handover requirements

8. Reference Offer: Statement regarding provision of employment reference if applicable

9. Contact Information: Details for future correspondence regarding final settlement

10. Signature Block: Space for authorized signatory and employee acknowledgment

What sections are optional to include in a Ending Services Letter?

1. Garden Leave Provisions: Include when employee is placed on garden leave during notice period

2. Post-Employment Restrictions: Include when reminding employee of existing non-compete or confidentiality obligations

3. Visa/Immigration Status: Include for expatriate employees regarding visa cancellation process

4. Medical Insurance Extension: Include if providing extended medical coverage post-termination

5. Gratuity Disputes: Include when there are specific agreements about disputed calculations

6. Release and Waiver: Include when mutual release of claims is agreed upon

What schedules should be included in a Ending Services Letter?

1. Final Settlement Calculation: Detailed breakdown of all payment components including basic salary, allowances, and deductions

2. End of Service Benefits Calculation: Detailed calculation of gratuity based on UAE Labor Law formula

3. Leave Settlement: Calculation of unused annual leave balance and compensation

4. Company Property Checklist: Itemized list of company assets to be returned

5. Handover Document: List of pending tasks, projects, and important information to be handed over

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Cost

Free to use

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