The Separation Mutual Agreement is utilized in the United Arab Emirates when both employer and employee agree to terminate their employment relationship amicably. This document, governed by UAE Federal Decree-Law No. 33 of 2021, serves as a comprehensive record of the separation terms, protecting both parties' interests while ensuring compliance with local labor laws. It is particularly valuable in situations where a clean break is desired and both parties wish to document their agreement on final settlements, mutual releases, and ongoing obligations. The agreement typically includes calculations of end-of-service benefits, final salary, and other entitlements, while also addressing practical aspects such as handover procedures, confidentiality requirements, and visa cancellation for expatriate employees. This type of agreement helps prevent future disputes by clearly documenting all agreed terms and mutual releases.
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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Brief context of employment relationship and mutual decision to terminate
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Clear specification of the last day of employment
5. Final Settlement: Detailed breakdown of all payments including salary, gratuity, and other entitlements
6. Release and Waiver: Mutual release from claims and liabilities
7. Confidentiality: Ongoing obligations regarding confidential information
8. Company Property: Requirements for return of all company assets and documents
9. Tax and Compliance: Confirmation of tax treatment and regulatory compliance
10. Governing Law: Specification of UAE law as governing law and jurisdiction
11. Execution: Signature blocks and execution requirements
1. Immigration Status: For expatriate employees, addressing visa cancellation and grace period
2. Non-Competition: Post-termination restrictions if applicable to employee's position
3. Handover: Detailed handover requirements for senior positions or ongoing projects
4. Reference: Terms of employment references to be provided
5. Medical Insurance: Continuation or termination of medical insurance coverage
6. Share Options/Benefits: Treatment of any outstanding employee benefits or share schemes
7. Announcement: Agreed form of internal/external announcement of departure
1. Schedule 1 - Payment Calculation: Detailed breakdown of final settlement calculation
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Handover Checklist: Detailed list of handover items and responsibilities
4. Appendix A - Confidential Information: Definition and scope of confidential information
5. Appendix B - Non-Compete Terms: Detailed terms of any post-termination restrictions
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