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Basic Separation Agreement

Basic Separation Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Basic Separation Agreement

"I need a Basic Separation Agreement for a senior software developer in our Riyadh tech company who is resigning voluntarily effective March 15, 2025, with specific attention to intellectual property protection and a 6-month non-compete clause."

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Document background
The Basic Separation Agreement is a crucial document used in Saudi Arabia when formally ending an employment relationship by mutual consent or unilateral decision. It must comply with Saudi Labor Law (Royal Decree No. M/51) and related Ministry of Human Resources and Social Development regulations. This agreement is typically used when an employee's service is being terminated through resignation, mutual agreement, or employer-initiated separation, and includes essential provisions for final settlements, end-of-service benefits, confidentiality obligations, and property return. The document ensures all termination processes follow local legal requirements while protecting both parties' rights and obligations. It's particularly important in the Saudi context due to specific statutory requirements for employment termination and the calculation of terminal benefits.
Suggested Sections

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

2. Background: Brief description of employment history, current position, and mutual agreement to terminate

3. Definitions: Key terms used throughout the agreement, including 'Effective Date', 'Termination Date', and other relevant terminology

4. Termination of Employment: Specific details about the termination, including the effective date and nature of separation

5. Final Settlement: Comprehensive breakdown of all financial entitlements including salary, end-of-service benefits, and other payments

6. Company Property: Requirements for return of company property, documents, and equipment

7. Confidentiality Obligations: Ongoing obligations regarding confidential information and trade secrets

8. Final Release: Mutual release of claims, subject to terms of the agreement

9. Governing Law: Confirmation that Saudi law governs the agreement and submission to Saudi courts

10. Execution: Signature blocks and execution requirements

Optional Sections

1. Non-Competition: Restrictions on working for competitors, used when employee had access to sensitive information or significant client relationships

2. Non-Solicitation: Restrictions on approaching company employees or clients, included for senior positions

3. Continuing Obligations: Any ongoing duties or responsibilities post-termination, used for senior roles or specific projects

4. Reference Provision: Terms regarding future employment references, included when mutually agreed

5. Handover Requirements: Detailed handover process for senior positions or critical roles

6. Tax Indemnity: Provisions regarding tax liability, included for high-value settlements or expatriate employees

7. Social Media: Obligations regarding professional social media accounts and contacts, relevant for marketing or client-facing roles

8. Cooperation in Legal Matters: Commitment to assist in future legal proceedings, relevant for senior positions or regulated industries

Suggested Schedules

1. Schedule 1: Financial Settlement Calculation: Detailed breakdown of all financial elements including salary, benefits, and statutory entitlements

2. Schedule 2: Company Property List: Itemized list of company property to be returned

3. Schedule 3: Handover Schedule: Detailed list of tasks, documents, and responsibilities to be handed over

4. Appendix A: Confidential Information Definition: Detailed description of what constitutes confidential information

5. Appendix B: End of Service Benefits Calculation: Detailed calculation as per Saudi Labor Law requirements

6. Appendix C: Non-Competition Terms: Specific details of non-compete restrictions including geographic and temporal scope

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
Company
Confidential Information
Effective Date
Employee
End of Service Benefits
Final Settlement
Governing Law
Last Working Day
Notice Period
Parties
Professional Documents
Company Property
Restricted Business
Settlement Payment
Termination Date
Trade Secrets
Intellectual Property
Affiliated Companies
Business Day
Cause
Claims
Competitor
Consideration
Final Release
Ministry
Non-Compete Period
Outstanding Obligations
Release
Saudi Labor Law
Territory
Working Hours
Waiver
Severability
Relevant Industries

Banking & Financial Services

Technology

Manufacturing

Oil & Gas

Construction

Retail

Healthcare

Professional Services

Education

Telecommunications

Real Estate

Hospitality

Transportation & Logistics

Consumer Goods

Energy

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Information Technology

Sales

Marketing

Research & Development

Production

Quality Assurance

Customer Service

Procurement

Corporate Communications

Risk & Compliance

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

HR Manager

Financial Controller

Sales Director

Operations Manager

Technical Specialist

Account Manager

Administrative Officer

Executive Assistant

Software Developer

Marketing Manager

Legal Counsel

Business Analyst

Production Supervisor

Research Scientist

Industries
Saudi Labor Law (Royal Decree No. M/51): Primary legislation governing employment relationships, including termination procedures, notice periods, and calculation of end-of-service benefits
Social Insurance Law: Regulates social insurance obligations and benefits during and after employment termination
MHRSD Implementing Regulations: Detailed regulations issued by Ministry of Human Resources and Social Development governing specific aspects of employment termination and settlements
Saudi Commercial Courts Law: Relevant for enforcement of non-competition clauses and commercial disputes arising from separation agreements
Anti-Commercial Fraud Law: Pertinent to confidentiality provisions and protection of trade secrets post-separation
Saudi Commercial Documents Law: Governs the format and validity of commercial documents, including settlement agreements
Anti-Money Laundering Law: Relevant for ensuring compliance in financial settlements and payments
Zakat, Tax and Customs Authority (ZATCA) Regulations: Governs tax implications of separation payments and benefits
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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