The Contract Separation Agreement is a crucial document used in the United Arab Emirates when an employer and employee mutually agree to terminate their employment relationship. It serves as a comprehensive record of the separation terms, ensuring compliance with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and related regulations. This document is particularly important in the UAE context due to the specific requirements regarding end of service benefits, visa cancellation procedures for expatriates, and mandatory notice periods. The agreement typically includes detailed provisions for final settlements, continuing obligations, and mutual releases, while addressing unique aspects of UAE employment law such as gratuity calculations and immigration requirements. It's commonly used during amicable separations, corporate restructuring, or when both parties wish to document their mutual understanding of the termination terms to prevent future disputes.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration/ID numbers
2. Background: Brief history of employment relationship, original employment date, current position, and reason for separation
3. Definitions: Key terms used throughout the agreement including Effective Date, Termination Date, Final Settlement etc
4. Termination of Employment: Formal termination provisions, including last working day and mutual agreement to terminate
5. Final Settlement: Details of all financial settlements including salary, end of service gratuity, and other entitlements
6. Company Property: Requirements for return of all company property, documents, and access credentials
7. Confidentiality: Ongoing obligations regarding confidential information and trade secrets
8. Non-Disparagement: Mutual obligations to refrain from making negative statements about each other
9. Release and Waiver: Mutual release of claims and rights related to the employment relationship
10. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction of UAE courts
11. Language: Specification that Arabic and English versions are provided, with Arabic prevailing in case of conflict
1. Non-Compete and Non-Solicitation: Restrictions on future employment and client/employee solicitation - used for senior employees or those with access to sensitive information
2. Intellectual Property Rights: Specific provisions for employees involved in creative or technical work
3. Outstanding Stock Options/Share Rights: Provisions handling unvested or vested company shares or options - used for employees with equity compensation
4. Visa and Immigration Status: Specific provisions regarding visa cancellation and immigration status - used for expatriate employees
5. Reference and Communications: Agreement on how future employment references will be handled
6. Continuing Obligations: Any ongoing responsibilities or transitional duties - used when knowledge transfer is required
7. Tax Implications: Used for international employees or those with complex compensation structures
1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial settlements including salary, gratuity, leave encashment, and other benefits
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Employee Benefits Summary: Summary of benefits status including medical insurance duration, housing allowance reconciliation etc
4. Appendix A - Resignation Letter: Standard format resignation letter to be signed by employee
5. Appendix B - Handover Report Template: Template for documenting handover of responsibilities and ongoing projects
6. Appendix C - Non-Compete Territory Map: If applicable, geographical representation of non-compete restrictions
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