Contract Expiration Notification Letter Template for Saudi Arabia

A Contract Expiration Notification Letter is a legally required document in Saudi Arabia that formally communicates to an employee that their employment contract will expire and will not be renewed. Under Saudi Labor Law, this notification is mandatory to ensure compliance with statutory notice periods and to protect the rights of both employers and employees in the termination process.

When do you need this document?

You need this letter when a fixed-term employment contract is approaching its natural expiration date and you do not intend to renew it. The document is also required when terminating unlimited contracts or when converting contract terms. Saudi Labor Law mandates that employers provide written notice at least 60 days before expiration for monthly-paid employees under unlimited contracts, and 30 days for other contract types. This notification is essential for HR departments managing contract renewals, legal representatives ensuring compliance, and authorized signatories executing formal employment decisions. The Ministry of Human Resources and Social Development may also require this documentation for registration and compliance purposes.

Key legal considerations

The letter must include specific elements to be legally valid under Saudi Labor Law. You must reference the original contract details including date and reference number, clearly state the expiration date, and confirm the notice period being provided. The document should outline final settlement arrangements including end-of-service benefits, accrued leave payments, and any other compensation due under Article 84 of Saudi Labor Law. You must also ensure the letter is delivered through proper channels and maintain proof of delivery for legal protection. The notification should be written in both Arabic and English if the employee is a foreign national, and must comply with Sharia law principles of fair dealing and good faith in contractual relationships.

Legal requirements in Saudi Arabia

Saudi Labor Law Article 74 establishes mandatory notice periods that vary based on contract type and payment frequency. For unlimited contracts with monthly salary payments, you must provide at least 60 days written notice, while other contracts require 30 days minimum notice. Article 75 specifies that failure to provide proper notice may result in compensation obligations equal to the employee's wages for the notice period. The letter must include your company's commercial registration number and be signed by an authorized representative. You should also ensure compliance with Saudi Civil Procedure Law regarding formal legal notifications. The document becomes part of the employee's official record and may be required by the Ministry of Human Resources and Social Development for visa cancellation and exit procedures. All communications must align with Sharia law principles and Saudi regulatory requirements for employment documentation.