Document background
The Termination Release Agreement is a crucial document used in Saudi Arabia when an employment relationship is being terminated by mutual consent. It serves to protect both employer and employee interests by clearly documenting the terms of separation, financial settlements, and mutual releases. This agreement must comply with Saudi Labor Law, Sharia principles, and relevant ministerial resolutions, making it essential for properly concluding employment relationships in the Kingdom. The document typically includes provisions for end-of-service benefits calculation, final settlements, confidentiality obligations, and property return requirements. It is particularly important in scenarios involving senior executives, expatriate employees, or situations where clear documentation of separation terms is crucial for risk management and legal compliance. The agreement helps prevent future disputes by providing a comprehensive record of the termination arrangements while ensuring all statutory obligations are met.
