Termination Letter With Cause Template for Saudi Arabia

A Termination Letter With Cause is a formal document that allows you to legally end an employment relationship in Saudi Arabia when an employee has committed serious violations or misconduct. This critical document must comply with Saudi Labor Law and serves as your official notice of termination while protecting your organization from potential legal disputes.

When do you need this document?

You need a Termination Letter With Cause when an employee has committed acts that justify immediate dismissal under Saudi Labor Law Article 80. This includes situations where an employee has engaged in fraud, deliberately damaged company property, disclosed confidential information, committed gross misconduct, or repeatedly violated company policies despite previous warnings. The document is also required when an employee fails to perform essential job duties after receiving formal warnings, violates safety protocols that endanger others, or engages in behavior that fundamentally breaches their employment contract. You must issue this letter before the termination takes effect to ensure legal compliance and proper documentation.

Key legal considerations

Your termination letter must include specific elements to be legally valid under Saudi Labor Law. You must clearly state the exact cause for termination with reference to specific incidents, dates, and evidence. The letter should reference relevant articles of Saudi Labor Law, particularly Article 80, and cite any company policies that were violated. You need to calculate and specify the employee's final settlement, including any outstanding salary, accrued vacation time, and end-of-service benefits as required by Article 88. The document must also address the return of company property, confidentiality obligations, and any restrictive covenants. Ensure you have proper documentation supporting the cause for termination, as this letter may be scrutinized in potential labor disputes.

Legal requirements in Saudi Arabia

Saudi Labor Law imposes strict requirements for termination procedures that you must follow precisely. Under Article 77, you must provide written notification following specific documentation procedures, and the termination must be based on legitimate grounds outlined in Article 80. You are required to issue a service certificate and provide final settlement calculations as specified in Articles 88 and 89. The letter must be delivered to the employee personally or through registered mail, and you should maintain proof of delivery. Additionally, you must comply with Ministerial Resolution No. 70273 regarding notification procedures and ensure that any termination decision aligns with your internal disciplinary procedures. Consider involving your HR department and legal counsel to verify compliance with all applicable regulations and to minimize the risk of wrongful termination claims.