This Layoff Separation Agreement is designed for use in the United Arab Emirates when implementing workforce reductions or individual layoffs. It serves as a legally binding document that complies with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and provides a framework for documenting the termination process, calculating final settlements, and establishing post-employment obligations. The agreement includes essential provisions for end-of-service benefits, visa cancellation procedures for expatriate employees, confidentiality requirements, and full and final settlement terms. It is particularly important in the UAE context where employment relationships are heavily regulated and formal documentation is crucial for both legal compliance and risk management. The document helps prevent future disputes by clearly outlining all separation terms and ensuring both parties understand their rights and obligations.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief context of the employment relationship and reason for separation
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date when employment relationship ends
5. Final Salary and Benefits: Details of final salary payment, including pro-rated salary, accrued leave, and other entitlements
6. End of Service Gratuity: Calculation and payment terms of end of service gratuity as per UAE Labor Law
7. Settlement of Dues: Comprehensive settlement of all financial obligations
8. Return of Company Property: Requirements for returning company assets, documents, and equipment
9. Confidentiality Obligations: Ongoing obligations regarding confidential information
10. Full and Final Settlement: Mutual release of claims and acknowledgment of full settlement
11. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts' jurisdiction
12. Execution: Signature blocks and execution requirements
1. Non-Compete Clause: Restrictions on future employment, if applicable and reasonable under UAE law
2. Additional Benefits: Any extra benefits beyond statutory requirements (e.g., extended medical insurance, outplacement services)
3. Reference and Communication: Terms regarding employment references and internal/external communication about the separation
4. Rehire Eligibility: Statement about future employment eligibility with the company
5. Continuation of Certain Benefits: Details of any benefits extending beyond termination date
6. Immigration Status: Provisions regarding visa cancellation and immigration requirements for expatriate employees
7. Cooperation in Transition: Terms for knowledge transfer and cooperation during transition period
8. Dispute Resolution: Alternative dispute resolution procedures before court litigation
1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all final payments including salary, gratuity, and other benefits
2. Schedule 2 - Company Property Checklist: List of all company property to be returned
3. Schedule 3 - Handover Schedule: List of ongoing projects, responsibilities, and handover requirements
4. Appendix A - Employee Benefits Summary: Summary of all benefits and their treatment post-termination
5. Appendix B - Confidential Information Definition: Detailed description of what constitutes confidential information
6. Appendix C - Release of Claims: Detailed terms of mutual release and waiver of claims
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