The Simple Separation Agreement is a crucial document used in Saudi Arabia when formally ending an employment relationship by mutual consent. It serves as a comprehensive record of the terms agreed upon between employer and employee, ensuring compliance with Saudi Labor Law and Sharia principles. This document becomes necessary when employment is terminated outside of standard dismissal or resignation procedures, typically in situations where both parties agree to end the relationship amicably. The agreement covers essential elements including final settlements, end of service benefits, confidentiality provisions, and property return requirements. It protects both parties' interests while ensuring all legal obligations under Saudi law are met, particularly regarding mandatory benefits and notice periods. The document's importance is heightened by Saudi Arabia's strict employment regulations and the need for clear documentation in employment matters.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers
2. Background: Brief context of the employment relationship, including start date and position
3. Definitions: Key terms used throughout the agreement
4. Effective Date of Separation: Clear statement of when the employment relationship will terminate
5. Final Settlement: Details of final salary, end of service benefits, and other mandatory payments
6. Company Property: Requirements for return of company property and documents
7. Confidentiality Obligations: Ongoing obligations regarding confidential information
8. Full and Final Settlement: Confirmation that the agreement represents a full and final settlement of all claims
9. Governing Law: Confirmation that Saudi Law governs the agreement
10. Execution: Signature blocks and execution requirements
1. Garden Leave: Used when employee is required to serve notice period away from workplace
2. Non-Competition: Include when there's a need to restrict future employment with competitors
3. Continued Benefits: Used when certain benefits will continue post-employment
4. Reference: Include when parties agree on the content and format of future employment references
5. Outstanding Leave: Used when addressing unused vacation or other leave balances
6. Transition Duties: Include when employee needs to complete specific handover tasks
7. Visa/Immigration Status: Required for expatriate employees regarding sponsorship transfer or cancellation
1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments including salary, end of service benefits, and other entitlements
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Handover Checklist: List of tasks and documents to be handed over before departure
4. Appendix A - Confidential Information: Detailed description of what constitutes confidential information
5. Appendix B - Non-Compete Terms: Specific terms of non-competition including geographical and temporal scope
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