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Notice of Termination
"I need a notice of termination for an employee with 3 years of service, including a 2-week notice period, final paycheck details, and instructions for returning company property."
What is a Notice of Termination?
A Notice of Termination is a formal written document that ends an employment relationship in Saudi Arabia. It must follow the Kingdom's Labor Law requirements, including proper notice periods - typically 30 days for monthly-paid workers and 15 days for others.
The notice needs to state clear reasons for termination, the end date, and any final settlement details. Saudi employers use these notices to protect themselves legally while ensuring employees receive their rights, including end-of-service benefits, unused leave payments, and other entitlements under local labor regulations. For fixed-term contracts, specific rules apply about when and how employers can issue these notices.
When should you use a Notice of Termination?
Use a Notice of Termination when ending any employment relationship in Saudi Arabia - from individual dismissals to large-scale workforce reductions. The notice becomes essential when terminating for poor performance, business restructuring, or project completion under fixed-term contracts.
Timing matters critically. Under Saudi labor laws, send the notice at least 30 days before the intended end date for monthly-paid employees, or 15 days for others. This protects both parties legally and allows time to arrange final settlements, complete handovers, and process end-of-service benefits. For urgent situations like gross misconduct, immediate termination notices require careful documentation of the specific violations.
What are the different types of Notice of Termination?
- Notice Of Termination Of Contract: Standard format for ending employment with proper notice periods
- End Of Contract Letter: Used when fixed-term contracts naturally expire
- End Contract Letter To Employer: Employee-initiated termination format with resignation details
- End Of Contract Letter To Employee: Employer's formal notification of contract completion
- Lease Agreement Termination Letter: Specialized format for ending rental or lease contracts
Who should typically use a Notice of Termination?
- HR Directors and Managers: Draft and oversee the Notice of Termination process, ensuring compliance with Saudi labor laws
- Company Legal Teams: Review notices for legal compliance and handle any disputes or claims
- Department Managers: Initiate termination requests and provide performance-related documentation
- Employees: Receive notices and must acknowledge receipt, with rights to dispute under labor regulations
- Ministry of Human Resources: Oversees compliance and handles employment disputes related to terminations
- Labor Courts: Resolve disputes and enforce legal requirements when termination notices are challenged
How do you write a Notice of Termination?
- Employee Details: Gather full name, position, employee ID, and start date of employment
- Termination Basis: Document specific reasons aligned with Saudi labor law provisions
- Notice Period: Calculate correct notice period based on employment type and contract terms
- Final Settlement: List all pending dues, end-of-service benefits, and unused leave payments
- Documentation: Collect performance reviews, warnings, or incident reports supporting the termination
- Review Process: Use our platform to generate a legally-compliant notice that includes all mandatory elements
- Delivery Method: Plan secure delivery with acknowledgment receipt as required by local regulations
What should be included in a Notice of Termination?
- Header Information: Company details, employee information, and current date in both Gregorian and Hijri calendars
- Termination Grounds: Clear statement of legal basis under Saudi Labor Law Articles
- Notice Period: Explicit mention of notice period duration and end date
- Final Entitlements: Detailed breakdown of end-of-service benefits, salary, and leave balance
- Handover Requirements: List of company property to be returned and pending work transfer
- Confidentiality Terms: Post-employment obligations regarding company information
- Acknowledgment Section: Space for both employer and employee signatures with dates
- Legal References: Relevant Saudi Labor Law articles supporting the termination
What's the difference between a Notice of Termination and a Disciplinary Action Notice?
A Notice of Termination differs significantly from a Disciplinary Action Notice in both purpose and legal implications under Saudi labor law. While both documents address workplace issues, they serve distinct functions and trigger different legal processes.
- Purpose and Timing: A Notice of Termination ends employment immediately or within a specified notice period. A Disciplinary Action Notice serves as a formal warning, often part of a progressive discipline process before termination
- Legal Requirements: Termination notices must include final settlement details and notice periods per Saudi labor law. Disciplinary notices focus on documenting specific violations and required improvements
- Employee Rights: Termination notices trigger end-of-service benefits and final settlements. Disciplinary notices usually allow opportunity for correction and response
- Documentation Impact: Termination notices permanently end the employment relationship. Disciplinary notices become part of the employee's record but maintain employment status
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