The Full and Final Settlement Letter After Termination is a vital document used in the UAE employment context when an employment relationship is terminated, whether through resignation, termination, or mutual agreement. This document, which must comply with UAE Federal Decree-Law No. 33 of 2021 and related employment regulations, serves multiple purposes: it confirms the termination date, details all final payments and benefits, includes mutual releases of claims, and ensures all outstanding obligations are addressed. The letter should be carefully drafted to include all statutory entitlements under UAE labor law, such as end-of-service gratuity, leave encashment, and notice period payments where applicable. It provides legal protection for both employer and employee by documenting the complete settlement of all employment-related matters and preventing future disputes.
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1. Letter Header and Date: Company letterhead, date, and reference number
2. Addressee Details: Employee's full name and address
3. Subject Line: Clear indication that this is a Full and Final Settlement Letter
4. Employment Details: Confirmation of employment period, position, and termination date
5. Settlement Amount: Clear statement of the total settlement amount and its components
6. Payment Terms: Details of how and when the settlement amount will be paid
7. Confirmation of Dues: Statement confirming all dues including salary, notice period, gratuity, and other benefits have been calculated and included
8. Release and Waiver: Mutual release of all claims and obligations
9. Return of Company Property: Confirmation of return of all company assets and properties
10. Confidentiality: Reminder of ongoing confidentiality obligations
11. Acknowledgment: Space for both parties to acknowledge and sign the letter
1. Non-Compete Reminder: Include when the employee's contract contained non-compete clauses that survive termination
2. Pending Projects Handover: Include when there are specific projects or responsibilities that need formal handover
3. Immigration Status: Include for expatriate employees regarding visa cancellation and related procedures
4. Reference Letter: Include when agreed to provide a reference letter as part of the settlement
5. Outstanding Loans: Include when there are company loans or advances to be settled
6. Benefits Continuation: Include when certain benefits will continue for a specified period post-termination
1. Schedule A - Settlement Calculation: Detailed breakdown of the settlement amount including basic salary, notice period, gratuity, leave encashment, and other entitlements
2. Schedule B - Company Property Checklist: List of company properties to be returned with confirmation of return status
3. Schedule C - Outstanding Benefits: Details of any pro-rated bonuses, commissions, or other benefits included in the settlement
4. Appendix 1 - Supporting Documents: Copies of relevant documents such as termination letter, leave records, or salary certificates
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Real Estate and Construction
Oil and Gas
Retail and Hospitality
Technology and Telecommunications
Healthcare
Education
Manufacturing
Professional Services
Tourism and Entertainment
Logistics and Transportation
Media and Advertising
Relevant Teams
Human Resources
Legal
Finance
Payroll
Compliance
Employee Relations
Operations
Administration
Relevant Roles
HR Manager
HR Director
Legal Counsel
HR Business Partner
Compensation and Benefits Manager
Employee Relations Manager
HR Operations Manager
Payroll Manager
Legal Manager
Company Secretary
HR Administrator
Department Head
Line Manager
Chief Human Resources Officer
Human Resources Specialist
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