The Contract Expired Letter is a crucial document used in Saudi Arabian employment relationships to formally communicate the natural conclusion of a fixed-term employment contract. This document is required when a contract reaches its predetermined end date and neither party intends to renew or extend the agreement. It serves multiple purposes: confirming the contract's expiration date, detailing final settlements, specifying end-of-service benefits as required by Saudi Labor Law, and outlining the clearance process. The letter must comply with Saudi Arabian labor regulations, particularly Royal Decree No. M/51, and should be issued with sufficient notice to allow both parties to complete necessary formalities. For expatriate employees, it also addresses visa and sponsorship implications.
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1. Letter Header: Company letterhead, date, reference number, and recipient's details
2. Subject Line: Clear indication that this is a Contract Expiration Notice
3. Contract Reference: Details of the original contract including contract number, start date, and expiration date
4. Expiration Confirmation: Formal statement confirming the contract's expiration and the effective date
5. Final Settlement: Information about final payments, end-of-service benefits, and settlement procedures
6. Return of Company Property: List of company property to be returned and procedure for return
7. Clearance Process: Steps required for obtaining final clearance
8. Contact Information: Details of the HR department or relevant contact person for completing formalities
9. Closing: Professional closing statement, signature block, and company stamp
1. Certificate of Service: Offer to provide a detailed service certificate as per Saudi Labor Law requirements
2. Visa/Sponsorship Status: Include for expatriate employees to address sponsorship transfer or cancellation
3. Non-Compete Reminder: Include if the original contract contained non-compete clauses that remain effective
4. Outstanding Obligations: Include if there are any pending tasks, reports, or handover requirements
5. Rehire Eligibility: Include if specifying whether the employee is eligible for future employment
6. Exit Interview: Include if an exit interview is required or offered
1. Final Settlement Calculation: Detailed breakdown of final payment including salary, end-of-service benefits, and any other entitlements
2. Company Property Checklist: List of company assets to be returned with their current status
3. Clearance Form: Standard form listing all departments that need to provide clearance
4. Service Certificate Draft: Draft of the service certificate to be issued upon completion of clearance process
Relevant legal definitions
Contract
Company
Employee
Original Employment Agreement
Effective Date
End-of-Service Benefits
Final Settlement
Clearance Certificate
Service Certificate
Notice Period
Company Property
Confidential Information
End Date
Settlement Period
Wage Protection System
Exit Permit
Labor Office
Ministry
Sponsorship
Company
Employee
Original Employment Agreement
Effective Date
End-of-Service Benefits
Final Settlement
Clearance Certificate
Service Certificate
Notice Period
Company Property
Confidential Information
End Date
Settlement Period
Wage Protection System
Exit Permit
Labor Office
Ministry
Sponsorship
Clauses
Contract Expiration Notice
Final Settlement
End-of-Service Benefits
Company Property Return
Confidentiality Obligations
Non-Compete Obligations
Clearance Requirements
Document Return
Reference Provision
Final Payments
Exit Procedures
Sponsorship Status
Outstanding Obligations
Contact Information
Acknowledgment
Final Settlement
End-of-Service Benefits
Company Property Return
Confidentiality Obligations
Non-Compete Obligations
Clearance Requirements
Document Return
Reference Provision
Final Payments
Exit Procedures
Sponsorship Status
Outstanding Obligations
Contact Information
Acknowledgment
Relevant Industries
Banking & Finance
Construction
Manufacturing
Oil & Gas
Technology
Healthcare
Retail
Education
Professional Services
Hospitality
Telecommunications
Real Estate
Transportation & Logistics
Government Services
Mining
Relevant Teams
Human Resources
Legal
Compliance
Administration
Operations
Finance
Senior Management
Corporate Secretariat
Relevant Roles
HR Manager
HR Director
Legal Counsel
Compliance Officer
Department Manager
Project Manager
Contract Administrator
HR Specialist
Company Secretary
Managing Director
CEO
Operations Manager
Administrative Manager
Finance Manager
Department Head
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