Work Contract Termination Letter Template for Saudi Arabia

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Key Requirements PROMPT example:

Work Contract Termination Letter

"I need a Work Contract Termination Letter compliant with Saudi Labor Law for an employee resigning from their position, with a standard notice period of 30 days starting January 15, 2025, including provisions for handover of ongoing projects and return of company property."

Document background
The Work Contract Termination Letter is a crucial document used in Saudi Arabia when ending an employment relationship, whether through resignation, termination for cause, or mutual agreement. It must strictly comply with Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions, which govern employment termination procedures in the Kingdom. This document serves multiple purposes: it officially records the termination date, outlines the reason for contract termination, specifies notice periods, details final settlements including end-of-service benefits, and addresses the return of company property. The letter becomes an important reference for both parties in documenting the formal conclusion of the employment relationship and can be critical in case of future disputes or reference checks.
Suggested Sections

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee

2. Employee Information: Full name, employee ID, position, department, and joining date

3. Termination Statement: Clear statement of employment termination with reference to relevant employment contract

4. Effective Date: Specific date when the termination becomes effective, including notice period if applicable

5. Reason for Termination: Brief, clear statement of the reason for termination in accordance with Saudi Labor Law

6. Final Settlement: Overview of final settlement including salary, end-of-service benefits, and other entitlements

7. Company Property: Request for return of company property and handover procedures

8. Closing Statement: Professional closing with acknowledgment of service and future reference provisions

9. Signature Block: Space for authorized signatory details and company stamp

Optional Sections

1. Non-Compete Reminder: Include when the employee's contract contains non-compete clauses that remain effective post-termination

2. Confidentiality Obligations: Include when employee had access to sensitive information or when reinforcing ongoing confidentiality obligations

3. Transition Plan: Include when employee needs to handle knowledge transfer or complete specific projects before departure

4. Severance Package: Include when offering additional benefits beyond statutory requirements

5. Release Agreement Reference: Include when a separate release agreement is being offered

6. Garden Leave: Include when employee is being placed on garden leave during notice period

Suggested Schedules

1. Final Settlement Calculation: Detailed breakdown of all financial entitlements including salary, end-of-service benefits, and other dues

2. Handover Checklist: List of company property, documents, and access credentials to be returned

3. Exit Interview Form: Standard form for conducting and documenting the exit interview

4. Clearance Form: Document confirming clearance from various departments (IT, Finance, HR, etc.)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Banking & Financial Services

Technology

Manufacturing

Retail

Healthcare

Construction

Education

Professional Services

Telecommunications

Energy & Utilities

Hospitality

Real Estate

Transportation & Logistics

Mining & Materials

Media & Entertainment

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Operations

Administration

Executive Leadership

People Operations

Relevant Roles

Human Resources Manager

Legal Counsel

HR Director

Chief Human Resources Officer

HR Business Partner

Employee Relations Manager

HR Operations Manager

Legal Manager

Compliance Officer

HR Administrator

Department Head

General Manager

Chief Executive Officer

Managing Director

Operations Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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