Employment Separation Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Employment Separation Agreement

"I need an Employment Separation Agreement for a mid-level software developer who is voluntarily resigning from our Riyadh office effective March 15, 2025, with standard confidentiality provisions and end-of-service benefits calculation."

Document background
The Employment Separation Agreement is a crucial document used in Saudi Arabia when formally ending an employment relationship, whether through mutual agreement, resignation, or termination. It serves as a comprehensive record of the separation terms, incorporating requirements from Saudi Labor Law, ministerial resolutions, and Sharia principles. This document is particularly important in the Saudi Arabian context due to strict local employment regulations and the need for clear documentation of final settlements, including end-of-service benefits calculations, outstanding entitlements, and post-employment obligations. The agreement helps prevent future disputes by clearly outlining all terms of separation, confidentiality requirements, and any applicable restrictions, while ensuring compliance with mandatory local legal requirements regarding employment termination.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration/ID numbers

2. Background: Brief history of employment relationship, reason for separation, and context of the agreement

3. Definitions: Key terms used throughout the agreement, including defined terms from Saudi Labor Law

4. Effective Date of Separation: Clear statement of the termination date and last working day

5. Final Settlement: Breakdown of final payment including salary, end-of-service benefits, and other entitlements

6. Release and Waiver: Mutual release of claims and liabilities between parties

7. Confidentiality Obligations: Ongoing obligations regarding company confidential information

8. Company Property: Requirements for return of company property and documentation

9. Tax and Social Insurance: Provisions regarding tax implications and GOSI settlements

10. Governing Law: Confirmation of Saudi Law application and jurisdiction

11. Execution: Signature blocks and execution requirements

Optional Sections

1. Non-Compete Provisions: Restrictions on future employment - used for senior employees or those with access to sensitive information

2. Non-Solicitation: Restrictions on soliciting employees/customers - typically for management positions

3. Ongoing Cooperation: Terms for post-employment assistance - useful for key positions requiring knowledge transfer

4. Stock Options/Share Rights: Treatment of any equity-based compensation - for employees with share-based benefits

5. Reference Provision: Terms regarding future employment references - when specifically negotiated

6. Repatriation Benefits: For expatriate employees requiring repatriation assistance

7. Training Cost Recovery: When employee has undertaken sponsored training with repayment obligations

8. Continuation of Benefits: Any extended benefits post-termination - for senior executives or negotiated packages

Suggested Schedules

1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial entitlements and deductions

2. Schedule 2 - Company Property Checklist: List of all company property to be returned

3. Schedule 3 - End of Service Benefit Calculation: Detailed calculation of end-of-service benefits as per Saudi Labor Law

4. Schedule 4 - Outstanding Leave Calculation: Calculation of any accrued but unused leave

5. Appendix A - Confidential Information Definition: Detailed list of what constitutes confidential information

6. Appendix B - Handover Plan: Detailed plan for handover of responsibilities and ongoing projects

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 | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Oil & Gas

Manufacturing

Technology

Healthcare

Retail

Construction

Education

Telecommunications

Professional Services

Hospitality

Transportation & Logistics

Real Estate

Mining

Government & Public Sector

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Information Technology

Sales

Marketing

Research & Development

Production

Customer Service

Business Development

Compliance

Risk Management

Corporate Communications

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

Technical Specialist

Sales Executive

Administrative Officer

Operations Manager

Finance Manager

HR Manager

Marketing Manager

Software Engineer

Account Manager

Research Analyst

Production Supervisor

Customer Service Representative

Business Development Manager

Legal Counsel

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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