Document background
The Layoff Agreement is a critical document used in Saudi Arabia when an employer needs to formally terminate an employment relationship due to various business reasons such as restructuring, downsizing, or organizational changes. This document is specifically designed to comply with Saudi Labor Law (Royal Decree No. M/51) and related regulations, ensuring that all mandatory requirements for employment termination are met. The agreement typically includes detailed provisions for end-of-service benefits, notice periods, final settlements, and ongoing obligations such as confidentiality. It serves as a protective measure for both employers and employees by clearly documenting the terms of separation and helping prevent future disputes. The document must be carefully drafted to ensure it meets all local legal requirements while addressing specific circumstances of the termination.
