The Termination Letter Due To Downsizing is a crucial document used in the United Arab Emirates when an organization needs to reduce its workforce due to economic conditions, organizational restructuring, or other business necessities. This document must strictly comply with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and related ministerial resolutions governing employment termination. It serves as official documentation of the termination decision, incorporating mandatory elements such as notice periods, end-of-service gratuity calculations, and final settlement details. The letter should be drafted carefully to protect both employer and employee rights, maintain professional relationships, and minimize legal risks. It's particularly important to ensure the document demonstrates that the termination is for legitimate business reasons rather than arbitrary dismissal, as this distinction significantly affects the legal implications under UAE law.
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1. Letter Header: Company letterhead, date, reference number, and employee's details including name, employee ID, and position
2. Subject Line: Clear indication that this is a termination notice due to downsizing
3. Opening Statement: Professional and empathetic introduction explaining the general business circumstances necessitating the downsizing
4. Termination Notice: Formal notice of termination including the effective date and notice period as per UAE Labor Law
5. Final Settlement Details: Overview of final settlement components including salary, end-of-service gratuity, and other entitlements
6. Handover Requirements: Instructions regarding the handover of company property, documents, and ongoing projects
7. Exit Procedures: Information about required exit procedures and final clearance process
8. Reference Offer: Statement offering to provide reference letters or certificates of service
9. Contact Information: Details of HR personnel to contact for queries and assistance
10. Closing Statement: Professional closure expressing gratitude for service and best wishes
1. Visa and Immigration Status: Include when the employee is under company sponsorship, detailing the visa cancellation process and grace period
2. Outplacement Support: Include when the company offers career transition services or job search assistance
3. Medical Insurance Extension: Include when applicable, detailing any continuation of medical coverage post-termination
4. Housing Benefit Settlement: Include for employees with housing allowance or company accommodation, explaining the transition process
5. Non-Compete Reminder: Include when the employee is bound by non-compete or confidentiality agreements that survive termination
6. Rehiring Policy: Include when the company has a policy regarding potential future re-employment of laid-off employees
1. Final Settlement Calculation: Detailed breakdown of all financial entitlements including salary, gratuity, leave balance, and other benefits
2. Company Property Checklist: List of company assets to be returned before final clearance
3. Exit Clearance Form: Document listing all departments from which clearance is required
4. Benefits Summary: Summary of any continuing benefits or benefit conversion options
5. Important Contact Information: List of relevant HR contacts and support resources
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Technology and Telecommunications
Real Estate and Construction
Retail and Consumer Goods
Manufacturing and Industrial
Healthcare and Pharmaceuticals
Professional Services
Energy and Utilities
Hospitality and Tourism
Media and Entertainment
Education
Transportation and Logistics
Relevant Teams
Human Resources
Legal
Finance
Compliance
Employee Relations
Payroll
Senior Management
Operations
Administration
Relevant Roles
Chief Executive Officer
Human Resources Director
Legal Counsel
HR Manager
Department Manager
Line Manager
Finance Director
Operations Manager
Compliance Officer
Employee Relations Manager
HR Business Partner
Compensation and Benefits Manager
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