The Mutual Termination Of Employment Letter Template is designed for use in the United Arab Emirates when both employer and employee agree to end their employment relationship by mutual consent. This document is essential for ensuring compliance with UAE Federal Decree-Law No. 33 of 2021 and related employment regulations while documenting the terms of the amicable separation. It should be used when both parties have reached an agreement on termination terms, typically in scenarios such as voluntary separation, restructuring, or when alternative employment arrangements have been secured. The template includes crucial elements such as termination date, final settlement calculations, end-of-service benefits, and post-employment obligations, all structured to meet UAE legal requirements while protecting both parties' interests.
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1. Letter Header: Company letterhead, date, reference number, and addressing the employee by full name and employee ID
2. Subject Line: Clear indication that this is a mutual termination of employment letter
3. Employment Details: Reference to current position, employment start date, and confirmation of mutual agreement to terminate
4. Termination Date: Clear statement of the last working day and effective termination date
5. Final Settlement: Overview of final settlement including salary, end of service gratuity, and other entitlements
6. Company Property: List of company property to be returned and deadline for return
7. Non-Disclosure: Reminder of ongoing confidentiality obligations
8. Full and Final Settlement: Statement confirming that the settlement represents full and final settlement of all claims
9. Acknowledgment: Space for both parties to sign and date the letter
1. Notice Period Waiver: Include when both parties agree to waive the notice period requirements
2. Garden Leave: Include when employee will be paid but not required to work during notice period
3. Reference Letter: Include when employer agrees to provide a reference letter
4. Visa/Immigration Status: Include for expatriate employees regarding visa cancellation process
5. Non-Compete Reminder: Include when original employment contract contained non-compete clauses that will survive termination
6. Outstanding Leave: Include when there is unused annual leave to be calculated in final settlement
7. Medical Insurance Extension: Include if medical insurance will be extended beyond termination date
1. Final Settlement Calculation: Detailed breakdown of all payment components including basic salary, allowances, end of service gratuity, and any other payments or deductions
2. Company Property Checklist: Itemized list of company property to be returned including laptops, phones, access cards, etc.
3. Handover Schedule: Timeline and checklist for handover of responsibilities and ongoing projects
4. Benefits Summary: Summary of benefits being terminated and any post-employment continuation of benefits
Relevant legal definitions
Clauses
Relevant Industries
Banking & Financial Services
Technology
Manufacturing
Retail
Healthcare
Professional Services
Construction
Education
Hospitality
Energy
Transportation & Logistics
Real Estate
Media & Entertainment
Telecommunications
Relevant Teams
Human Resources
Legal
Compliance
Finance
Payroll
Employee Relations
Corporate Secretarial
Risk Management
Relevant Roles
HR Director
HR Manager
Legal Counsel
HR Business Partner
Employment Lawyer
Compliance Officer
HR Administrator
Compensation & Benefits Manager
Employee Relations Manager
Chief Human Resources Officer
HR Operations Manager
Legal Director
Company Secretary
General Counsel
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