Contract Expiration Notice Template for Saudi Arabia

A Contract Expiration Notice is a formal document that notifies all relevant parties about the approaching end of a contract and confirms that it will not be renewed. In Saudi Arabia, this document serves as crucial legal protection for both employers and employees, ensuring compliance with strict Saudi Labor Law requirements while maintaining clear records of contract termination procedures.

When do you need this document?

You need a Contract Expiration Notice whenever you want to formally end an employment contract or business agreement without renewal. This is essential when an employee's fixed-term contract is approaching its natural expiration date, when you're terminating a contractor's services at the end of their agreed period, or when ending a commercial partnership or service agreement. The notice is also required when restructuring your business and certain positions will be eliminated, or when an employee has reached retirement age and their contract will not be extended. Saudi Labor Law mandates this formal notification process to protect workers' rights and ensure proper documentation of employment termination.

Key legal considerations

The most critical legal requirement is adhering to mandatory notice periods under Article 75 of Saudi Labor Law. You must provide at least 30 days' notice for monthly-paid employees and 15 days for others paid on different schedules. Your notice must clearly state the contract expiration date, reference the original contract details including dates and parties involved, and outline any final obligations or procedures. The document should address end-of-service benefits calculation as required by Articles 84-88 of Saudi Labor Law, including any accrued vacation days, gratuities, or other compensation owed. You must also ensure the notice complies with any specific termination clauses outlined in the original contract, as these may impose additional requirements beyond the minimum legal standards.

Legal requirements in Saudi Arabia

Saudi Arabian law requires your Contract Expiration Notice to include specific formatting and content elements. The document must display dates in both Gregorian and Hijri calendars, include your company's full legal name and commercial registration number, and reference relevant provisions of Saudi Labor Law. For employment contracts, you must notify the Ministry of Human Resources about the termination as required by Ministerial Resolution No. 70273. The notice must be written in Arabic or include an Arabic translation for legal validity, and should reference compliance with Sharia Law principles where applicable. Additionally, if disputes arise from the contract termination, Saudi Commercial Courts Law governs the resolution process, making proper documentation essential for legal protection. Ensure your notice includes clear statements about final settlement procedures and any required handover processes to maintain compliance with local business practices.