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Layoff Letter for United Arab Emirates

Layoff Letter Template for United Arab Emirates

This document serves as a standardized template for implementing employment termination through layoff in the United Arab Emirates, ensuring compliance with Federal Decree-Law No. 33 of 2021 (UAE Labor Law) and related regulations. The template provides a comprehensive framework for communicating employment termination, including essential elements such as notice period, final settlement calculations, and end-of-service benefits, while maintaining professional standards and protecting both employer and employee rights under UAE law. It incorporates necessary provisions for both mainland UAE and free zone entities, addressing specific requirements for local and expatriate employees.

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What is a Layoff Letter?

The Layoff Letter Template is designed for use in the United Arab Emirates business environment, providing organizations with a legally compliant and professionally structured approach to implementing workforce reductions. This document becomes necessary during organizational restructuring, economic downturns, or other business circumstances requiring employee termination. The template ensures adherence to UAE Labor Law requirements, including proper notice periods, end-of-service benefit calculations, and necessary procedural elements. It is specifically crafted to address both local and expatriate employee considerations, including visa implications and final settlement requirements under UAE jurisdiction. The template helps organizations maintain consistency in their termination processes while minimizing legal risks and ensuring fair treatment of employees during workforce reductions.

What sections should be included in a Layoff Letter?

1. Company Letterhead and Date: Official company letterhead including company details, address, and date of the letter

2. Employee Information: Full name, employee ID, position, and department of the employee being laid off

3. Subject Line: Clear indication that this is a termination/layoff notice

4. Termination Statement: Clear statement of employment termination and effective date

5. Reason for Layoff: Brief explanation of the business circumstances necessitating the layoff (e.g., restructuring, economic conditions)

6. Notice Period: Specification of the notice period as per UAE Labor Law and last working day

7. Final Settlement: Overview of final settlement including salary, end-of-service gratuity, and other entitlements

8. Company Property: Instructions regarding return of company property and handover procedures

9. Acknowledgment: Space for employee signature acknowledging receipt of the letter

What sections are optional to include in a Layoff Letter?

1. Severance Package: Details of any additional compensation beyond statutory requirements, used when company offers extra benefits

2. Outplacement Support: Information about any career transition services offered, included when company provides such support

3. Non-Compete Reminder: Reminder of existing non-compete obligations, included if employee has signed such agreements

4. Reference Provision: Information about company's policy on providing references, included when company offers reference letters

5. Medical Insurance Extension: Details about continuation of medical insurance, if applicable

6. Rehire Eligibility: Statement about future employment eligibility, included when company wants to maintain relationship

7. Visa Status Information: Special instructions regarding visa status and cancellation, included for expatriate employees

What schedules should be included in a Layoff Letter?

1. Final Settlement Calculation: Detailed breakdown of all final payment components including salary, gratuity, and other benefits

2. Handover Checklist: List of items and responsibilities to be handed over before last working day

3. Benefits Summary: Summary of benefits status and terminal dates for various benefits

4. Exit Process Checklist: Detailed checklist of all exit formalities to be completed

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 | Serial Founder & Legal AI Author

Document Type

Employment Form

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Banking and Financial Services

Technology

Construction

Real Estate

Retail

Manufacturing

Healthcare

Education

Hospitality

Professional Services

Oil and Gas

Telecommunications

Media and Entertainment

Transportation and Logistics

Energy

Relevant Teams

Human Resources

Legal

Compliance

Operations

Employee Relations

Administration

Management

Executive Leadership

Public Relations

Relevant Roles

HR Director

HR Manager

Legal Counsel

Department Manager

General Manager

Chief Human Resources Officer

HR Business Partner

Employee Relations Manager

Compliance Officer

Operations Manager

HR Administrator

PRO (Public Relations Officer)

Legal Manager

Chief Executive Officer

Managing Director

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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