Document background
The Employee Mutual Separation Agreement is utilized when both employer and employee in Saudi Arabia agree to terminate their employment relationship amicably. This document is essential for ensuring compliance with Saudi Labor Law while protecting both parties' interests. It should be used when a consensual termination is desired, as an alternative to unilateral termination or resignation. The agreement typically includes comprehensive details about final settlements, end-of-service benefits calculations, confidentiality provisions, and any post-employment obligations. It must align with Saudi Arabian labor regulations and Sharia principles, particularly regarding the calculation of benefits and settlement terms. The document serves as crucial evidence of the mutually agreed terms and helps prevent future disputes by clearly documenting all aspects of the separation.
