Document background
The Termination Agreement serves as a crucial legal document in Saudi Arabia, used when an employment relationship is being concluded by mutual consent or unilateral decision. It must comply with the Saudi Labor Law (Royal Decree No. M/51) and its implementing regulations, while adhering to Sharia law principles. This agreement is essential for documenting the full and final settlement between parties, including end-of-service benefits calculation, final salary payments, and any additional entitlements. It provides legal protection for both employer and employee by clearly defining the termination terms, maintaining confidentiality, and establishing post-employment obligations. The document is particularly important in Saudi Arabia's business environment, where proper documentation of employment termination is crucial for both local regulatory compliance and protection of parties' rights.
