End Of Service Notice Template for Saudi Arabia

When employment relationships end in Saudi Arabia, you need an End Of Service Notice to comply with mandatory labor law requirements. This document serves as official proof of termination and ensures both parties understand their rights and obligations under Saudi Labor Law (Royal Decree No. M/51).

When do you need this document?

You must issue an End Of Service Notice whenever any employment relationship terminates in Saudi Arabia. This includes situations where an employee resigns and provides proper notice, when you terminate an employee for performance or disciplinary reasons, upon completion of a fixed-term contract, when an employee reaches mandatory retirement age, or during company restructuring that affects staff positions. The document is also required when an employee requests early retirement or when mutual agreement leads to employment termination. Without this notice, you risk non-compliance with Saudi labor regulations and potential penalties from the Ministry of Human Resources and Social Development.

Key legal considerations

Your End Of Service Notice must accurately calculate end of service gratuity according to Articles 84-88 of Saudi Labor Law, which entitles employees to specific compensation based on their length of service. For employees with less than five years of service, they receive half a month's salary for each year, while those with five or more years receive a full month's salary per year. The document must clearly state the employee's total service period, final working day, and comprehensive breakdown of all final settlements including unpaid salary, overtime, vacation allowances, and any applicable bonuses. You must also address handover requirements, return of company property, and any outstanding obligations. Ensure the notice complies with Wage Protection System regulations for final payment processing and includes proper GOSI documentation requirements.

Legal requirements in Saudi Arabia

Saudi Labor Law mandates specific notice periods depending on the type of employment contract and termination reason. For indefinite contracts, you must provide at least 60 days' notice for monthly-paid employees or 30 days for other payment structures. The notice must be issued on official company letterhead with proper authorization signatures and include the employee's complete service record. You must coordinate with the General Organization for Social Insurance to ensure proper social insurance transfers and final contributions. The document should reference relevant legal articles and maintain copies for your employment records as required by MHRSD guidelines. Final settlements must be processed within the timeframes specified in Article 88, and you should ensure all calculations comply with current minimum wage regulations and approved salary structures under the Wage Protection System.