Voluntary Termination Letter Template for Saudi Arabia

A formal document drafted under Saudi Arabian law that officially communicates an employee's voluntary decision to terminate their employment relationship with their employer. The letter must comply with Saudi Labor Law (Royal Decree No. M/51) requirements, including proper notice periods, acknowledgment of end-of-service benefits, and final settlement terms. It serves as a legal record of the employee's resignation, confirms the last working day, and addresses handover procedures, while ensuring all requirements under Saudi employment regulations are met, including provisions for both local and expatriate employees.

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What is a Voluntary Termination Letter?

The Voluntary Termination Letter is a crucial document used when an employee decides to end their employment relationship of their own accord in Saudi Arabia. It must be drafted in accordance with Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions, ensuring compliance with local employment regulations. The document serves multiple purposes: it formally communicates the employee's intention to resign, confirms the notice period and last working day, addresses final settlements and end-of-service benefits, and outlines handover commitments. This letter is particularly important in the Saudi context as it forms part of the official employment record and may be required for various administrative procedures, including visa cancellation for expatriate workers and processing of final settlements through the Wage Protection System.

What sections should be included in a Voluntary Termination Letter?

1. Letter Header: Employee and employer details, date, and reference number as required by Saudi Labor Law

2. Subject Line: Clear indication that this is a voluntary termination/resignation letter

3. Formal Declaration: Clear statement of intention to resign from the position

4. Current Position Details: Specification of current role and department

5. Notice Period: Confirmation of notice period as per employment contract and Saudi Labor Law

6. Last Working Day: Clear statement of intended final working day

7. Handover Commitment: Statement committing to proper handover of duties and company property

8. Request for Settlements: Request for processing of final settlements and end-of-service benefits as per Saudi Labor Law

9. Acknowledgment: Statement acknowledging company policies and procedures regarding resignation

10. Signature Block: Space for employee signature, date, and contact information

What sections are optional to include in a Voluntary Termination Letter?

1. Reason for Resignation: Optional section stating the reason for resignation - included when required by company policy or when maintaining positive relationships

2. Visa/Iqama Status: For expatriate employees, section addressing sponsorship transfer or cancellation requirements

3. Non-Competition Reminder: Reference to existing non-competition clauses if applicable to the employee's contract

4. Appreciation Note: Optional expression of gratitude for the employment opportunity - included for maintaining professional relationships

5. Special Circumstances: Any special arrangements agreed with management regarding the resignation process

6. Benefits Continuation: Details of any benefits that continue post-employment, if applicable

What schedules should be included in a Voluntary Termination Letter?

1. Employee Information Form: Standard form containing all relevant employee details and employment history

2. Final Settlement Calculation: Detailed breakdown of end-of-service benefits, unused leave, and other entitlements

3. Handover Checklist: List of tasks, documents, and company property to be handed over before departure

4. Exit Interview Form: Standard company exit interview documentation if required

5. Clearance Form: Document requiring signatures from various departments confirming no pending issues

Authors

Alex Denne

Advisor @ GenieAI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Saudi Arabia

Publisher

GenieAI

Document Type

Cost

Free to use

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