Document background
The Work Settlement Agreement is a crucial document used in Saudi Arabia when concluding an employment relationship, whether through mutual agreement, resignation, or termination. It serves as a comprehensive record of the final settlement terms between the employer and employee, ensuring compliance with Saudi Labor Law and Shari'ah principles. This document typically becomes necessary during employee exits, corporate restructuring, or mutually agreed separations. The agreement includes detailed calculations of end-of-service benefits, outstanding salary, unused leave, and other entitlements as prescribed by Saudi labor regulations. It also addresses the return of company property, confidentiality obligations, and mutual releases. The document must be drafted in both Arabic and English (with Arabic prevailing in case of conflict) and may require certification by relevant authorities depending on the circumstances.
