Notice Of Non Renewal Of Employment Contract Template for Saudi Arabia

When you need to inform an employee that their fixed-term employment contract will not be renewed in Saudi Arabia, a Notice of Non-Renewal of Employment Contract is legally required. This formal document ensures compliance with Saudi Labor Law and protects both employer and employee rights during the contract termination process.

When do you need this document?

You must use this notice when any fixed-term employment contract is approaching its expiration date and you have decided not to renew it. Saudi Labor Law requires employers to provide written notice at least 30 days before the contract's natural expiration. This applies to all types of fixed-term contracts, including probationary periods that are ending without conversion to permanent employment, project-based contracts completing their specified duration, and seasonal or temporary employment arrangements. The notice is also required when collective bargaining agreements specify non-renewal procedures, or when company policies mandate formal documentation of all employment decisions.

Key legal considerations

Several critical legal elements must be addressed in your notice. The document must clearly reference the original employment contract details, including start date and contract number, to establish the legal basis for the employment relationship. You must specify the exact contract expiration date and confirm that no renewal will occur. The notice should address end-of-service benefit calculations under Article 84 of Saudi Labor Law, as non-renewal may trigger these payments depending on the length of service. Include details about final working arrangements, handover procedures, and return of company property. Consider including language about confidentiality obligations that survive contract termination, and ensure the notice complies with any specific procedures outlined in the original employment contract or company handbook.

Legal requirements in Saudi Arabia

Saudi Labor Law imposes specific requirements for contract non-renewal notices that you must follow precisely. Article 75 mandates written notification with adequate advance notice, typically 30 days before expiration for most contracts. The notice must be delivered through approved communication methods, and you should maintain proof of delivery for your records. The document must include your company's full legal details, including commercial registration number, as required by MHRSD regulations. You must calculate and communicate any applicable end-of-service benefits, vacation pay, or other final settlements according to Article 84. The notice should be prepared in Arabic, or include an Arabic translation if originally drafted in another language. Additionally, ensure the document includes both Gregorian and Hijri calendar dates, and consider whether the non-renewal requires reporting to the Ministry of Human Resources and Social Development depending on your company's size and the employee's position level.