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Automatic Termination Of Contract

Automatic Termination Of Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Automatic Termination Of Contract

"I need an Automatic Termination of Contract document for a Saudi manufacturing company, to be used for project-based employees whose contracts will automatically terminate upon project completion, with standard end-of-service benefits as per Saudi Labor Law."

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Document background
The Automatic Termination of Contract document serves as a crucial legal instrument in Saudi Arabian employment relationships, designed to provide clarity and certainty regarding the circumstances under which employment contracts automatically terminate. This document is typically used when establishing new employment relationships or updating existing contracts to include specific termination triggers such as project completion, license expiration, or other predetermined events. It must comply with Saudi Labor Law, Ministry of Human Resources and Social Development regulations, and Sharia principles, making it particularly important in regulated industries or for positions with specific licensing requirements. The document includes comprehensive details about termination processes, notice periods, final settlements, and post-termination obligations, ensuring both parties understand their rights and responsibilities when automatic termination occurs.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers

2. Background: Brief context of the employment relationship and reference to the main employment contract

3. Definitions: Key terms used in the document, including specific triggers for automatic termination

4. Automatic Termination Events: Comprehensive list of circumstances that will trigger automatic termination of the contract

5. Notice and Communication: Procedures for notification when an automatic termination event occurs

6. Financial Settlement: Details of final payment calculations, including salary, end-of-service benefits, and other entitlements

7. Return of Company Property: Requirements for returning company assets, documents, and confidential information

8. Post-Termination Obligations: Ongoing obligations after contract termination, including confidentiality and non-compete provisions

9. Governing Law and Jurisdiction: Confirmation of Saudi law application and relevant jurisdiction

Optional Sections

1. Force Majeure: Additional provisions for automatic termination due to extraordinary circumstances, used when specific business risks need to be addressed

2. Severance Package: Additional compensation beyond statutory requirements, included when offering enhanced benefits

3. Dispute Resolution: Specific procedures for resolving disputes, included when alternative dispute resolution is preferred to court proceedings

4. Training Cost Recovery: Provisions for recovering training investments, included when significant training costs have been incurred

5. International Considerations: Additional provisions for expatriate employees, used when the employee is a foreign national

Suggested Schedules

1. Schedule 1: Calculation of End-of-Service Benefits: Detailed formula and examples for calculating end-of-service benefits

2. Schedule 2: Company Property Checklist: List of company assets and materials to be returned upon termination

3. Schedule 3: Clearance Procedure: Step-by-step process for obtaining final clearance from various departments

4. Appendix A: Notice Requirements: Detailed requirements for notice periods based on different termination scenarios

5. Appendix B: Final Settlement Form: Template for documenting final settlement calculations and agreements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Automatic Termination Event
Business Day
Company
Confidential Information
Contract
Effective Date
Employee
Employer
End of Service Benefits
Final Settlement
Force Majeure
Governing Law
Intellectual Property Rights
Line Manager
Notice Period
Original Employment Contract
Party/Parties
Project Completion
Regulatory Approvals
Required Licenses
Saudi Labor Law
Service Period
Termination Date
Termination Notice
Working Day
Work Location
Work Permit
Iqama
Ministry
MHRSD
Clearance Certificate
Company Property
Exit Visa
Final Release
Relevant Industries

Banking and Financial Services

Oil and Gas

Construction

Manufacturing

Healthcare

Technology

Retail

Education

Transportation and Logistics

Professional Services

Telecommunications

Government and Public Sector

Real Estate

Hospitality

Relevant Teams

Human Resources

Legal

Compliance

Operations

Risk Management

Employee Relations

Recruitment

Executive Leadership

Administrative Support

Project Management Office

Relevant Roles

HR Director

Legal Counsel

Compliance Officer

Project Manager

Department Head

CEO

COO

HR Manager

Recruitment Manager

Employee Relations Manager

Risk Manager

Operations Manager

Contract Administrator

General Manager

Regional Director

Industries
Saudi Labor Law (Royal Decree No. M/51): The primary legislation governing employment relationships in Saudi Arabia, including provisions for contract termination, notice periods, and workers' rights
Article 74 of Saudi Labor Law: Specific provisions regarding the termination of employment contracts and circumstances under which automatic termination can occur
Article 75 of Saudi Labor Law: Regulations concerning end-of-service benefits and final settlements upon contract termination
MHRSD Implementing Regulations: Ministry of Human Resources and Social Development regulations that provide detailed guidance on employment contract termination procedures
Saudi Civil Code: General principles of contract law in Saudi Arabia, including formation, termination, and enforcement of contracts
Sharia Law Principles: Islamic law principles that govern contractual relationships and must be considered in contract termination provisions
Nitaqat (Saudization) Program Regulations: Requirements regarding employment of Saudi nationals that may affect contract termination provisions
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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