non-renewal of contract letter Uncategorized

Many people are unaware of the importance of the non-renewal of contract letter, and there can be a lot of confusion when it comes to leaving a job. For this, a resignation letter is needed depending on the type of contract.

In this article, we will talk about what a non-renewal of a contract letter is, from a labor contract to a non-renewal of the lease contract. There are a few situations where you will need a non-renewal of contract letter. Let us take a look:

  1. What is a non-renewal letter?
  2. What is the distinction between a non-renewal and a termination?
  3. When should I use a non-renewal letter?
  4. What should a non-renewal letter include?
  5. How to write a lease non-renewal letter?
  6. How can Connect Legal help with your non-renewal letter?

1. What is a non-renewal letter? 

Many contracts offer the option of renewing it after they have finished. Typically, contracts come with a specific date in which they will expire. However, if the parties involved agree to renew it, it will start again with a new expiring date and all the previous conditions. 

You will need a non-renewal letter of employment contract in the UAE if you are working under a limited contract. This will mean that once you complete your time stipulated on the contract of employment, you will no longer have the option of working there. 

Apart from a letter for non-renewal of work contract, you can also find other different types of contracts. For example, a lease contract. If you are experiencing a rental dispute, or your landlord simply decides not to renew the contract, they will present a non-renewal of contract letter.

In any case, writing a non-renewal of contract letter can sound intimidating for those with little to no experience. Our team is always ready to assist you in any legal matter in which you may require an expert partner.

2. What is the distinction between non-renewal and termination?

There is a big difference between a non-renewal of contract letter and a termination of a contract. The termination refers to the ending or expiration of the contract, according to its own established periods. The non-renewal of contract letter, as the name implies, is a document informing that such contract is not going to be renewed.  

The non-renewal of contract letter can come from any of the parties involved. For example, a landlord can give their tenant one if they do not plan to keep on renting their place. A worker can give their employers one if they intend to leave the company after the contract expires. The same can happen to a worker from their employer. 

A termination is needed when you are facing an unlimited contract of employment. In such case, you can contact us, and we will put you in touch with the greatest employment lawyers in the UAE. The first step will be notifying your current employer to begin your contract termination, and completing the notice period.

Of course, once you have chosen to terminate a contract, you will not need a letter for-non renewal of work contract. Make sure that you understand the new implications for employees according to the latest UAE Labour Law.

3. When should I use a non-renewal letter?

Typically, a non-renewal of contract letter is used before termination of the contract. This will serve as a notice to the other party to not expect its renewal. It also helps the disconnection flow more easily.

It is especially important for labor relationships to use a non renewal letter of employment contract in the UAE. This is due to the fact that employers must be prepared to pay the fees for the visa cancellation and not renewing a contract.

That knowledge will help smooth the transition. In case your employer is delaying your visa cancellation, you need to get in contact with legal services. 

In case the employer no longer wishes to re-employ a worker, they must also let them know in advance. A letter for non-renewal of work contract will allow the worker to start their job search in time.

It is critical to find a balance between being strong in your choice not to renew and taking the other party’s sentiments into account. Although it can be a requirement in some circumstances, it is also a polite and respectful thing to do. 

4. What should a non-renewal letter include? 

The first thing to take into consideration when writing a letter for non-renewal of work contract or any other type of contract  is a clear purpose. The letter must contain a clear message, with no ambiguity, to avoid any misinterpretation. It must explain the receiver the reasons behind the letter.

A non-renewal letter of employment contract in the UAE needs to have a declaration following a description of the current relationship between the parties. This declaration indicates that the arrangement will not be repeated. 

If available, a description of the appeals process must be included on the non-renewal letter of employment contract in the UAE. Add contact details for the person in charge of carrying out that procedure, as well as a link to an online resource where the receiver can learn more.

Finally, it is important to have your legal signature. For the non-renewal letter of employment contract in the UAE to be valid, it must contain your name, title, and contact details. In this way, the receiver can contact you if they have any more questions. 

4.1 Alternatives and duties

The person writing the non-renewal of contract letter must include a description of the recipient’s possible alternatives. Include deadlines, any alternative options, and, in the event of work contracts, perks such as vacation days. 

Additionally, when facing termination, always remember the post-termination restriction the employees might face. It is important to be aware of this and prevent any possibility of facing a civil case for breaching a contract unknowingly. 

Also, if the expiration is not effective immediately, clarify the receivers’ duties until the conclusion of the contract. The non-renewal letter of employment contract in the UAE is meant to prepare both parties for the relationship to end. 

4.2 Sensitive subjects or change in policy

In case the choice not to renew is due to a policy change, provide a copy of the change in policy. Including that information in the letter for non-renewal of work contract is a great way to let the receiver know where everything is coming from. 

If the scenario involves a sensitive subject, it is best to get in contact before sending the letter. Speaking with the individual over the phone or face-to-face to clarify your choice not to renew is the first step. After you have talked to them, you can send the non-renewal of contract letter as a formality. 

4.3 Non-renewal for poor performance

It is better to be completely honest about why you opted not to renew a contract. If you discontinue an agreement due to poor performance, be precise about the concerns and provide examples. A lot of professionals still experience trouble getting their words right when it comes to these legal documents, so make sure to contact us and we will guide you.

It is important to avoid using accusing words when writing a letter for non-renewal of work contract. Choose terms that are professional and calm. Prepare to back up any claims about misconduct or poor performance. 

Remember, any of the parties can file a complaint regarding labor issues. It is advisable to have a legal team that you can count on for this type of situation. This is especially true when it comes to companies; so hiring legal services for business is a fundamental part to protect both the company and the people working in it. 

4.4 Always keep it professional

Even if it is terrible news, you should remain professional and respectful. The notification of a non-renewal of contract letter may surprise and disturb the receiver, especially if it translates into a significant shift in their life. Always express gratitude to the recipient for their service and best wishes for the future. 

It is understandable to feel a little insecure or lost when facing the challenge to write the non-renewal letter. For this reason, you should register on our website to find legal assistance that suits your demands. On the other hand, if you happen to be a lawyer interested in offering your legal services, you can also contact us to work together. 

4.5 Do not let room for hesitation 

Make sure you do not say something that could give the impression that you are unsure about your decision. This may encourage the receiver to believe that they should contest the judgment in court. 

However, there will always be people who choose to fight in court for the renewal of the contract. In such case, it is important that you count on legal assistance that knows how to file an employment court case

5. How to write a lease non-renewal letter?

Just like in the non-renewal letter of employment contract in the UAE, the steps to follow are simple. Being clear and honest is a very important part of all non-renewal letters. 

At the conclusion of the lease, you must relinquish the premises and return the keys to the landlord or another agency. Except for reasonable wear and tear, the premises must remain in the same condition as when you came in.

In the case that you paid a deposit of a monetary amount, if you are owed a refund after deducting any repairs, cleaning, and overdue rent, it will be forwarded to your address. If you are experiencing trouble with money management, you need to seek a banking lawyer to prevent any further issues. 

This will happen within, generally, 30 days after surrendering the premises. If they do not have a correct address on file for you, the reimbursement will be mailed to your last registered location. 

5.1 Example of paragraph for a lease non-renewal letter

Please consider this letter as notification that the present lease will not be extended and will terminate at closing time on (the applicable date). There are no options for month-to-month tenancy.

The leasing agreement will not be extended for the following reasons: (list the reasons briefly, such as a business decision). This may not be the moment to accuse the contractor of wrongdoing.

6. How can Connect Legal help with your non-renewal letter? 

Writing a non-renewal of contract letter does not only require good writing skills. However, being highly respectful and keeping it as clear as possible is key. Our team of lawyers are experts writing all kinds of legal documentation, and we are beyond pleased to help you with any legal matters whenever you need it.

On Connect Legal, we bring you closer to the best lawyers in the country. For instance, we are experts in resolving an extensive variety of issues in family law, as well as divorce and criminal law.

Regardless of the situation, we are always prepared to give you the latest updates on the United Arab Emirates’ laws. You can also check out our free advice for our blog’s readers to discover how to carry out several legal procedures successfully

If you want to know more about the non-renewal of a contract letter or any other legal documentat in the UAE, contact us. Make sure to reach out to our best specialists by making a call at +971 43 316 688 where we will be glad to assist and accompany you. Another way to get in contact is via email, do it now at contact@connectlegal.ae.

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Sachi Goyal

Sachi Goyal
Sachi Goyal is pursuing her LLB graduation from Middlesex university specialized in Commercial Law, She now resides in Dubai and works as intern for Connect Resources in the Legal department mainly focusing on employment and Commercial Law.

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