Document background
The Termination Of Employment Contract is a crucial document used when ending an employment relationship in Saudi Arabia, whether through mutual agreement, resignation, or employer-initiated termination. It must comply with Saudi Labor Law (Royal Decree No. M/51) and related regulations, particularly regarding notice periods, end-of-service benefits calculation, and final settlements. This document serves multiple purposes: it formally records the termination date, outlines all financial settlements, addresses the return of company property, maintains confidentiality obligations, and provides a full and final settlement of claims. For expatriate employees, it also addresses visa and sponsorship matters. The agreement is essential for risk management and maintaining clear documentation of the employment termination process.
