One Month Notice For Termination Template for Saudi Arabia
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What is a One Month Notice For Termination?
The One Month Notice For Termination document is a crucial legal instrument in Saudi Arabian employment relations, required under Saudi Labor Law when either party wishes to terminate an indefinite employment contract. This document must be issued in compliance with Article 75 of the Saudi Labor Law, which mandates a minimum notice period of 30 days for monthly-paid employees. It serves as official documentation of the termination notification, protecting both employer and employee interests by clearly stating the notice period, final working day, and settlement terms. The document is essential for maintaining proper employment records, ensuring legal compliance, and facilitating a smooth transition period. It should be used whenever an employment relationship is being terminated with notice, except in cases where immediate termination is legally permitted.
About the One Month Notice For Termination
One Month Notice For Termination is a legally required document in Saudi Arabia that formally communicates the intention to terminate an employment contract. Under Article 75 of the Saudi Labor Law (Royal Decree No. M/51), you must provide a minimum 30-day notice period when terminating indefinite employment contracts for monthly-paid employees. This document serves as official proof that proper notice has been given, protecting both parties' legal rights and ensuring compliance with Saudi Arabian employment regulations.
When do you need this document?
You need this notice when either you as an employer wish to terminate an employee's indefinite contract, or when you as an employee want to resign from your position with proper notice. The document is required for all monthly-paid employees under indefinite contracts, excluding probationary periods or cases where immediate termination is legally justified. You must issue this notice whether the termination is due to company restructuring, performance issues, resignation, or mutual agreement. The notice becomes essential when you need to maintain legal compliance and avoid penalties for improper termination procedures under Saudi Labor Law.
Key legal considerations
Several critical legal elements must be included in your notice to ensure validity and compliance. You must clearly specify the effective date of notice and calculate the last working day as exactly one month from the notice date. The document should detail handover requirements, including return of company property and completion of work responsibilities. You must reference end-of-service benefits calculations according to Article 84, ensuring the employee understands their entitlements. Include provisions for service certificates and final settlements as mandated by Article 88. The notice must be formally documented with proper signatures and witness requirements where applicable, creating a clear legal record that protects against future disputes.
Legal requirements in Saudi Arabia
Saudi Labor Law imposes specific requirements that your notice must fulfill to be legally enforceable. Under Article 75, the 30-day notice period is mandatory and cannot be waived without mutual written agreement and compensation. You must comply with Ministerial Resolution No. 70273 dated 11/04/1440H regarding updated termination documentation procedures. The notice must be issued on company letterhead with proper reference numbers and formal addressing. You are required to provide clear calculation of end-of-service benefits, including basic salary, housing allowance, and transportation allowance where applicable. The document must specify the process for obtaining service certificates and ensure all final settlements are processed according to Saudi Labor Law timelines. Failure to provide proper notice can result in compensation obligations equivalent to the employee's salary for the notice period not given.
GOVERNING LAW
Applicable law
This One Month Notice For Termination is drafted to comply with Saudi Arabia law. Key legislation includes:
Article 75 of Saudi Labor Law: Specifies the mandatory notice period requirements for termination of employment contracts and the consequences of failing to provide proper notice
Article 84 of Saudi Labor Law: Details the calculation and payment of end-of-service benefits which must be referenced in termination documentation
Article 88 of Saudi Labor Law: Outlines the requirements for providing service certificates and final settlements upon termination
Ministerial Resolution No. 70273 dated 11/04/1440H: Provides updated regulations regarding contract termination procedures and documentation requirements in Saudi Arabia
Wage Protection System (WPS) Regulations: Governs the payment of final settlements and outstanding wages during the notice period
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