The Letter For Non Renewal Of Work Contract is a crucial document used in Saudi Arabian employment relationships when an employer decides not to extend or renew a fixed-term employment contract. This document must be issued within the notice period specified by Saudi Labor Law, typically at least 30-60 days before the contract's expiry date, depending on the contract terms. The letter serves multiple purposes: it formally notifies the employee of the non-renewal decision, ensures legal compliance with Saudi labor regulations, initiates the process for final settlement calculations, and helps maintain clear documentation of the employment relationship's conclusion. It's particularly important in the Saudi Arabian context where proper documentation of employment decisions is essential for both regulatory compliance and potential labor dispute prevention.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee
2. Employee Information: Full name, employee ID, position, and department of the employee
3. Contract Reference: Details of the current employment contract including its start date and end date
4. Non-Renewal Statement: Clear statement of the company's intention not to renew the contract upon its expiry
5. Notice Confirmation: Confirmation that this letter serves as the required notice period as per Saudi Labor Law
6. End Date Confirmation: Explicit mention of the last working day
7. Final Settlement Reference: Statement regarding the processing of end-of-service benefits and final dues
8. Company Property: Reminder about returning company property and completing handover procedures
9. Signature Block: Space for authorized signatory's name, title, and signature
1. Reason for Non-Renewal: Optional section explaining the reason for non-renewal, if the company chooses to provide one
2. Performance Acknowledgment: Optional section acknowledging the employee's service, used when parting on good terms
3. Future Reference Provision: Optional section indicating willingness to provide employment references
4. Non-Competition Reminder: Optional section reminding of any post-employment obligations, if applicable in the original contract
5. Transition Plan: Optional section outlining handover requirements for critical positions
1. Acknowledgment Receipt: Form for the employee to sign acknowledging receipt of the non-renewal letter
2. Handover Checklist: List of company items to be returned and tasks to be completed before the last working day
3. Final Settlement Calculation: Breakdown of end-of-service benefits and final dues as per Saudi Labor Law
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