The End Of Fixed Term Contract Letter is a crucial document used in Saudi Arabian employment relationships when a fixed-term employment contract reaches its natural conclusion. This document is required to comply with Saudi Labor Law and serves multiple purposes: it formally notifies the employee of the contract's end, details the final settlement calculations including end-of-service benefits, and outlines the necessary clearance procedures. The letter is particularly important in the Saudi Arabian context as it helps ensure compliance with local labor regulations and provides documentary evidence of proper contract termination. It should be prepared in advance of the contract's end date and must include specific elements required by Saudi labor authorities, especially for situations involving expatriate workers who may require additional documentation for visa purposes.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee
2. Contract Reference: Clear identification of the employment contract being terminated, including original start date and employee details
3. Termination Notice: Formal statement confirming the natural expiration of the fixed-term contract and the final working day
4. End of Service Details: Confirmation of the end-of-service benefits calculation and final settlement details as per Saudi Labor Law
5. Handover Requirements: List of company property to be returned and handover procedures for work responsibilities
6. Final Clearance Process: Steps for obtaining final clearance and completing exit procedures
7. Acknowledgment: Space for both employer and employee signatures confirming understanding of the termination terms
1. Visa/Sponsorship Status: For expatriate employees, information regarding the transfer or cancellation of residence permit (Iqama) and work visa
2. Non-Compete Reminder: If the original contract contained non-compete clauses, a reminder of these ongoing obligations
3. Reference Offer: Optional statement about providing employment references if applicable
4. Rehire Eligibility: Statement about potential future employment opportunities with the company
5. Outstanding Leave Balance: Details of any unused annual leave and how it will be compensated
1. Final Settlement Calculation: Detailed breakdown of end-of-service benefits, final salary, and any other financial entitlements
2. Handover Checklist: List of company assets, documents, and responsibilities to be handed over before departure
3. Service Certificate: Standard certificate of employment stating the duration and nature of employment as required by Saudi Labor Law
4. Exit Interview Form: Optional form for gathering feedback and completing HR documentation
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Construction
Healthcare
Education
Technology
Retail
Financial Services
Telecommunications
Oil and Gas
Professional Services
Hospitality
Transportation and Logistics
Real Estate
Media and Entertainment
Public Sector
Relevant Teams
Human Resources
Legal
Finance
Operations
Administration
Payroll
Compliance
Employee Relations
Relevant Roles
Human Resources Manager
HR Director
Legal Counsel
HR Administrator
Payroll Manager
Department Manager
Operations Director
General Manager
CEO
CFO
Project Manager
Site Supervisor
Account Manager
Sales Representative
Administrative Assistant
Technical Specialist
Engineer
Teacher
Medical Professional
Financial Analyst
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