Dismissal Notice for Saudi Arabia

Dismissal Notice Template for Saudi Arabia

A dismissal notice is a formal document used in Saudi Arabia to terminate an employment relationship in accordance with the Saudi Labor Law (Royal Decree No. M/51). The document serves as an official notification of employment termination, outlining the notice period, reason for dismissal, final settlement details, and handover requirements. It must comply with specific provisions of Saudi labor legislation, including statutory notice periods and employee rights. The notice ensures legal compliance while protecting both employer and employee interests during the termination process.

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What is a Dismissal Notice?

The Dismissal Notice is a crucial employment document used in Saudi Arabia when an employer needs to formally terminate an employment relationship. It must be drafted in accordance with the Saudi Labor Law (Royal Decree No. M/51) and related ministerial decisions. The document is typically used when terminating employment for legitimate reasons such as poor performance, redundancy, or misconduct, and must include specific elements required by law such as notice periods, termination reasons, and final settlement details. The notice serves multiple purposes: it provides formal documentation of the termination, outlines the employee's rights and obligations during the notice period, and helps ensure compliance with local labor regulations. The document's format and content must reflect the mandatory requirements of Saudi labor law while accommodating specific circumstances of the termination.

What sections should be included in a Dismissal Notice?

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee

2. Employee Information: Full name, employee ID, position, department, and joining date

3. Notice of Termination Statement: Clear statement indicating employment termination and effective date

4. Notice Period: Specification of the notice period as per Saudi Labor Law (30 days for monthly paid workers, 15 days for others)

5. Reason for Termination: Brief, clear statement of the reason for dismissal in accordance with Saudi Labor Law

6. Final Settlement Information: Information about final salary, end-of-service benefits, and other entitlements

7. Handover Requirements: List of company property to be returned and handover procedures

8. Acknowledgment: Space for employee signature and date of receipt

What sections are optional to include in a Dismissal Notice?

1. Performance History Summary: Include when termination is performance-related, summarizing key performance issues and previous warnings

2. Garden Leave Provisions: Include when employee is placed on garden leave during notice period

3. Non-Competition Reminder: Include when employee is bound by existing non-compete agreements

4. Grievance Procedure: Include when company policy or circumstances require explaining the employee's right to appeal

5. Continuation of Benefits: Include when specific benefits continue during notice period or beyond termination

6. References Policy: Include when specifying company policy regarding future employment references

What schedules should be included in a Dismissal Notice?

1. Final Settlement Calculation: Detailed breakdown of final payment including salary, end-of-service benefits, and other entitlements

2. Handover Checklist: Itemized list of company property to be returned

3. Previous Warning Letters: Copies of previous warning letters if termination is due to disciplinary reasons

4. Exit Interview Form: Standard company exit interview documentation

5. Certificate of Service: Standard service certificate as required by Saudi Labor Law Article 111

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Termination Notice

Cost

Free to use

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