The Employment Termination Policy serves as a crucial governance document for organizations operating in Saudi Arabia, providing a structured framework for managing employment separations in compliance with local labor laws. This policy document is essential for organizations to establish clear, consistent, and legally compliant procedures for handling various types of employment termination scenarios. It incorporates requirements from the Saudi Labor Law (Royal Decree No. M/51), relevant ministerial resolutions, and recent reforms under Saudi Vision 2030. The policy should be implemented when an organization needs to ensure standardized termination practices, protect both employer and employee rights, and maintain compliance with regulatory requirements. It includes comprehensive guidance on notice periods, end-of-service benefits, final settlements, and procedural requirements specific to the Saudi jurisdiction.
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1. Purpose and Scope: Defines the objective of the policy and its applicability within the organization
2. Definitions: Key terms used throughout the policy including types of termination, notice period, end of service benefits, etc.
3. Legal Framework: Reference to relevant Saudi Labor Law provisions and other applicable regulations
4. Types of Termination: Details of different termination categories (voluntary resignation, termination with cause, termination without cause, redundancy)
5. Notice Periods: Required notice periods for different employment categories and circumstances
6. End of Service Benefits: Calculation and payment of end of service gratuity and other benefits
7. Final Settlement Procedures: Process for calculating and settling final dues including wages, unused leave, etc.
8. Handover Procedures: Requirements for returning company property and knowledge transfer
9. Exit Procedures: Steps for processing termination including clearance, documentation, and final approvals
10. Appeals Process: Procedures for employees to appeal termination decisions
1. Redundancy Procedures: Detailed procedures for handling redundancies and mass terminations, required for larger organizations
2. International Employee Provisions: Special considerations for terminating expatriate employees, needed if organization employs non-Saudi nationals
3. Executive Termination Procedures: Special provisions for executive-level terminations, relevant for organizations with executive employees
4. Remote Worker Termination: Specific procedures for terminating remote workers, needed if organization employs remote staff
5. Performance-Based Termination: Detailed procedures linking performance management to termination, useful for organizations with formal performance management systems
6. Retirement Procedures: Specific procedures for handling retirement-related terminations, relevant for organizations with retirement policies
1. Schedule 1: End of Service Benefit Calculator: Template for calculating end of service benefits based on years of service and salary
2. Schedule 2: Exit Interview Form: Standard form for conducting and documenting exit interviews
3. Schedule 3: Clearance Checklist: Comprehensive checklist for employee clearance process
4. Schedule 4: Handover Report Template: Template for documenting handover of responsibilities and company assets
5. Schedule 5: Final Settlement Calculator: Template for calculating final settlement including all dues and deductions
6. Appendix A: Sample Termination Letters: Templates for various types of termination letters compliant with Saudi Labor Law
7. Appendix B: Required Government Forms: Copies of mandatory government forms required during termination process
8. Appendix C: Appeal Form Template: Standard form for employees to submit termination appeals
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