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Early Termination Letter for Saudi Arabia

Early Termination Letter Template for Saudi Arabia

A formal document prepared under Saudi Arabian law to officially communicate the termination of employment before the natural end of an employment contract. This document must comply with the Saudi Labor Law and include specific elements such as notice period, final settlement details, and terms of separation. It serves as a legal record of employment termination and outlines both parties' rights and obligations during the termination process, including end-of-service benefits calculation and company property return requirements. The letter must be drafted in accordance with local labor regulations and may need to be submitted to relevant authorities.

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What is a Early Termination Letter?

The Early Termination Letter is a crucial document used in Saudi Arabian employment relationships when either party wishes to end the employment contract before its natural conclusion. It must be drafted in compliance with Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions, which require specific content and procedures for employment termination. This document is essential for protecting both employer and employee rights, documenting the termination decision, specifying notice periods, and outlining final settlements. It serves as official evidence of proper termination procedures and may be required for government records, visa cancellation, and final settlement processing. The letter should be prepared with careful attention to legal requirements, cultural considerations, and the specific circumstances of the termination.

What sections should be included in a Early Termination Letter?

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

2. Employee Details: Full name, employee ID, position, and department of the employee

3. Termination Statement: Clear statement of employment termination with reference to relevant contract clause and Labor Law provisions

4. Notice Period: Specification of notice period duration and last working day

5. Final Settlement: Information about end-of-service benefits, salary dues, and other entitlements as per Saudi Labor Law

6. Company Property: Request for return of company assets and documents

7. Acknowledgment: Space for employee signature and date of receipt

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

1. Reason for Termination: Include when termination is for cause or when specific reasoning needs to be documented

2. Handover Requirements: Detailed handover instructions when employee handles critical responsibilities or confidential information

3. Non-Compete Reminder: Include when employee is bound by non-compete or confidentiality agreements

4. Garden Leave: Include when employee is to be placed on garden leave during notice period

5. Reference Offer: Include when company is willing to provide employment references

6. Ongoing Obligations: Include when there are post-employment obligations that need to be highlighted

What schedules should be included in a Early Termination Letter?

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

2. Company Property Checklist: List of company assets to be returned

3. Employee Clearance Form: Document requiring signatures from various departments confirming no pending dues/items

4. Exit Interview Form: Standard form for recording feedback and reasons for departure

5. Handover Document Template: Template for documenting handover of responsibilities and ongoing projects

Authors

Alex Denne

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




















Clauses
















Relevant Industries

Banking and Financial Services

Manufacturing

Technology

Healthcare

Construction

Retail

Oil and Gas

Education

Telecommunications

Professional Services

Hospitality

Real Estate

Transportation and Logistics

Mining

Government and Public Sector

Relevant Teams

Human Resources

Legal

Compliance

Administration

Operations

Corporate Secretariat

Employee Relations

Risk Management

Relevant Roles

HR Manager

Legal Counsel

HR Director

Company Secretary

Compliance Officer

HR Business Partner

Legal Manager

Employment Law Specialist

HR Operations Manager

Personnel Manager

HR Administrator

Legal Administrator

HR Coordinator

Department Manager

Executive Assistant

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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