Work Separation Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Work Separation Agreement

"I need a Work Separation Agreement for a senior executive in our Saudi manufacturing company who is leaving by mutual consent on March 1, 2025, with special attention to stock options and continued health benefits for 6 months."

Document background
The Work Separation Agreement is a crucial document used in Saudi Arabia when formally ending an employment relationship through mutual agreement or unilateral termination. It ensures compliance with Saudi Labor Law (Royal Decree No. M/51) and related regulations while protecting both employer and employee interests. The document typically becomes necessary during corporate restructuring, voluntary resignations, or mutually agreed terminations, providing clear documentation of final settlements, end-of-service benefits, and ongoing obligations. It must align with local labor office requirements and often requires ratification by the Ministry of Human Resources and Social Development to be fully enforceable.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers

2. Background: Brief overview of the employment relationship, including start date and position

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specific date when employment relationship ends and confirmation of last working day

5. Final Settlement: Breakdown of all financial entitlements including salary, end of service benefits, and other dues

6. Release and Waiver: Mutual release of claims and liabilities between parties

7. Company Property: Requirements for return of company assets, documents, and intellectual property

8. Confidentiality: Ongoing obligations regarding confidential information

9. Non-Disparagement: Mutual agreement not to make negative statements about each other

10. Governing Law: Confirmation of Saudi Law application and jurisdiction

11. Acknowledgment: Employee's confirmation of understanding and voluntary acceptance

Optional Sections

1. Garden Leave: Terms of paid leave period before final termination, if applicable

2. Non-Competition: Post-employment restrictions on working with competitors, if part of original employment contract

3. Continuation of Benefits: Any extended medical or other benefits post-termination

4. Repatriation: Terms for expatriate employee repatriation, if applicable

5. Training Costs Recovery: Terms for recovering training investments, if applicable

6. References: Agreement on handling future employment references

7. Outstanding Loans: Settlement of any outstanding loans or advances from employer

8. Share Options/Benefits: Treatment of any outstanding share options or long-term benefits

Suggested Schedules

1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial entitlements and deductions

2. Schedule 2 - Company Property List: Itemized list of company property to be returned

3. Schedule 3 - Benefits Summary: Details of any benefits and their termination dates

4. Appendix A - Original Employment Contract: Reference copy of the original employment contract

5. Appendix B - Employee Clearance Form: Departmental clearance checklist

6. Appendix C - Confidential Information Definition: Detailed description of what constitutes confidential information

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 and Financial Services

Manufacturing

Technology

Oil and Gas

Construction

Retail

Healthcare

Education

Telecommunications

Professional Services

Hospitality

Transportation and Logistics

Real Estate

Mining

Media and Entertainment

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Finance

Payroll

Executive Leadership

Risk Management

Relevant Roles

Human Resources Director

Legal Counsel

HR Manager

Compliance Officer

HR Business Partner

Legal Manager

Employee Relations Manager

HR Operations Manager

Compensation and Benefits Manager

Chief Human Resources Officer

HR Administrator

Chief Legal Officer

Labor Relations Specialist

HR Coordinator

Personnel Manager

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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