Notification Of End Of Contract Template for Saudi Arabia

When terminating an employment contract in Saudi Arabia, you must provide formal written notice through a Notification Of End Of Contract. This document ensures compliance with Saudi Labor Law and protects both employer and employee rights during the termination process. The notification serves as official documentation of the employment relationship's conclusion and establishes clear timelines and obligations for both parties.

When do you need this document?

You need a Notification Of End Of Contract whenever an employment relationship is ending in Saudi Arabia, regardless of the reason for termination. This includes situations where you're terminating an employee for performance issues, restructuring your organization, completing a fixed-term contract, or when an employee has resigned and you need to acknowledge their departure. The document is also required when probationary periods end without contract renewal, during company closures, or when employees reach retirement age. For expatriate workers, this notification is essential for visa cancellation procedures and final exit processes.

Key legal considerations

Your notification must clearly specify the termination date, notice period, and reasons for contract termination where applicable. Include comprehensive details about final settlement calculations, including outstanding wages, unused annual leave, end-of-service benefits, and any deductions. Address post-employment obligations such as confidentiality agreements, non-compete clauses, and return of company property. Ensure the document references the original employment contract and any subsequent amendments. Consider potential legal risks including wrongful termination claims, disputes over end-of-service benefit calculations, and compliance with notice period requirements. The notification should also address handover procedures, final working arrangements, and any garden leave provisions.

Legal requirements in Saudi Arabia

Under Saudi Labor Law (Royal Decree No. M/51), you must provide written notice complying with minimum notice periods specified in Articles 74-83. Calculate end-of-service benefits according to Articles 84-88, ensuring accurate computation based on the employee's length of service and reason for termination. Follow MHRSD Ministerial Resolution No. 70273 regarding formal notification procedures and documentation requirements. Ensure compliance with Wage Protection System regulations for final wage settlements and benefit payments. The notification must be issued on company letterhead, include employee identification details, and specify the exact termination date. For expatriate employees, coordinate with relevant authorities for visa cancellation procedures and ensure the document supports required exit processes under Saudi immigration law.