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Mutual Release Agreement Employment for United Arab Emirates

Mutual Release Agreement Employment Template for United Arab Emirates

A Mutual Release Agreement Employment is a legally binding document governed by UAE Labor Law (Federal Decree-Law No. 33 of 2021) that formally terminates an employment relationship while providing mutual releases between employer and employee. The agreement details the terms of separation, including final settlements, end-of-service benefits, and comprehensive releases from future claims by both parties. It ensures compliance with UAE employment regulations while offering protection to both employer and employee through clearly defined terms of separation and mutual commitments. The document typically includes provisions for confidentiality, final payments, and specific releases of claims under UAE jurisdiction.

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Mutual Release Agreement Employment

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What is a Mutual Release Agreement Employment?

The Mutual Release Agreement Employment is a critical document used in the United Arab Emirates when formally concluding an employment relationship with mutual assurances against future claims. It is particularly relevant in situations where both employer and employee seek a clean break and legal certainty regarding the end of their professional relationship. The agreement must comply with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and typically includes comprehensive details about final settlements, end-of-service gratuity calculations, and specific releases from various types of potential claims. This document is especially important in the UAE context where employment relationships are heavily regulated, and proper documentation of termination terms is crucial for both legal compliance and risk management. The agreement serves to prevent future disputes by clearly documenting the terms of separation and mutual commitments while ensuring all legal requirements under UAE jurisdiction are met.

What sections should be included in a Mutual Release Agreement Employment?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration/identification numbers

2. Background: Brief history of the employment relationship, including start date, position, and context for the mutual release

3. Definitions: Key terms used throughout the agreement, including 'Claims', 'Effective Date', and other relevant definitions

4. Acknowledgment of Employment Termination: Confirmation of employment termination date and circumstances

5. Consideration: Details of any payments or benefits being provided as consideration for the release

6. Mutual Release of Claims: Comprehensive mutual release of all claims, rights, and causes of action between the parties

7. Tax and Legal Implications: Statement regarding tax responsibilities and legal implications of the agreement

8. Non-Admission of Liability: Statement that the agreement does not constitute admission of wrongdoing by either party

9. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts for dispute resolution

10. Entire Agreement: Statement that this agreement represents the entire understanding between parties

11. Execution: Signature blocks and execution requirements

What sections are optional to include in a Mutual Release Agreement Employment?

1. Confidentiality Obligations: Ongoing confidentiality requirements, used when sensitive information was accessed during employment

2. Non-Disparagement: Mutual agreements not to make negative statements, used in sensitive terminations

3. Return of Company Property: Detailed section about return of company assets, used when employee had access to significant company property

4. Continuing Obligations: Reference to surviving obligations from employment contract, used when certain restrictions continue post-employment

5. Reference and Communications: Agreement on how future employment references will be handled, used when specifically negotiated

6. Social Media and Professional Profiles: Requirements for updating professional profiles, used when employee had significant public-facing role

7. Cooperation in Transition: Terms for employee assistance in transition period, used when knowledge transfer is crucial

What schedules should be included in a Mutual Release Agreement Employment?

1. Schedule 1 - Settlement Payment Details: Breakdown of all payments to be made, including final salary, end of service gratuity, and any additional settlements

2. Schedule 2 - Released Claims: Detailed list of specific claims being released by both parties

3. Schedule 3 - Company Property Inventory: List of all company property to be returned

4. Appendix A - Employee Benefits Summary: Summary of any continuing or terminating benefits

5. Appendix B - Calculation of Final Entitlements: Detailed calculations of all final payments and entitlements under UAE Labor Law

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

Release Agreement

Cost

Free to use
Relevant legal definitions






























Clauses




























Relevant Industries

Banking and Financial Services

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Relevant Roles

Chief Executive Officer

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Executive Assistant

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Industries







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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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