Firing Notice for Saudi Arabia

Firing Notice Template for Saudi Arabia

A formal employment termination document compliant with Saudi Arabian Labor Law (Royal Decree No. M/51) and its amendments. This notice outlines the termination of employment, including mandatory notice periods, end-of-service benefits calculation, and final settlement terms. The document ensures compliance with Saudi labor regulations regarding proper documentation of employment termination, including statutory notice periods of 30 days for monthly-paid workers and 15 days for others, while addressing requirements for end-of-service benefits, property return, and final settlements in accordance with local law.

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What is a Firing Notice?

The Firing Notice is a crucial legal document used in Saudi Arabia to formally terminate employment relationships in compliance with local labor laws. This document is required whenever an employer wishes to terminate an employee's contract, whether for performance reasons, organizational restructuring, or other valid grounds under Saudi Labor Law. The notice must adhere to strict legal requirements including proper notice periods, clear stating of termination reasons, and calculation of end-of-service benefits. The document serves as official documentation for both employer and employee, protecting both parties' rights and ensuring compliance with Saudi labor regulations, particularly Royal Decree No. M/51 and its amendments. Proper execution of this notice is essential to avoid legal disputes and ensure smooth employment termination processes.

What sections should be included in a Firing Notice?

1. Company Letterhead: Official company letterhead with full legal name, commercial registration number, and contact details

2. Date: The official date of notice issuance

3. Employee Details: Full name, employee ID, position, and department of the employee

4. Subject Line: Clear indication that this is a termination notice

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

6. Effective Date: Clear statement of the final working day

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

8. End of Service Benefits: Statement regarding the calculation and payment of end-of-service benefits

9. Company Property: Instructions regarding the return of company property

10. Final Settlement: Information about the final settlement process and timing

11. Authentication: Authorized signatory details and company stamp

What sections are optional to include in a Firing Notice?

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

2. Severance Package: Include when offering additional benefits beyond statutory requirements

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

4. Transition Plan: Include when handover of duties is required during notice period

5. Reference Policy: Include when specifying company policy on providing references

6. Legal Rights Statement: Include when there's a need to explicitly state employee's legal rights under Saudi Labor Law

7. Exit Interview: Include when company policy requires an exit interview

What schedules should be included in a Firing Notice?

1. Performance Review Documents: Copies of relevant performance reviews or warnings (if performance-related termination)

2. End of Service Calculation: Detailed calculation of end-of-service benefits and final settlement

3. Handover Checklist: List of items, documents, and responsibilities to be handed over

4. Company Property List: Itemized list of company property to be returned

5. Exit Clearance Form: Standard company exit clearance form listing all departments' approvals needed

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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