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Job Termination Letter for Saudi Arabia

Job Termination Letter Template for Saudi Arabia

A Job Termination Letter is a formal document used in Saudi Arabia to officially end an employment relationship between an employer and employee. The document must comply with Saudi Labor Law requirements, including specific provisions regarding notice periods, end of service benefits, and grounds for termination. It serves as a legal record of the employment termination, outlining the terms and conditions of the separation, final settlements, and any post-employment obligations. The letter must be drafted in accordance with Saudi Ministry of Human Resources and Social Development (MHRSD) guidelines and should include all mandatory elements required by local employment regulations.

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What is a Job Termination Letter?

The Job Termination Letter is a crucial document in Saudi Arabian employment law, used to formally document the end of an employment relationship. It serves multiple purposes: legal compliance, clear communication, and documentation of the termination terms. The letter must adhere to strict requirements under Saudi Labor Law and MHRSD regulations, including proper notice periods, calculation of end of service benefits, and specific grounds for termination. It should be used whenever an employment relationship is being terminated, whether through mutual agreement, performance issues, redundancy, or other legitimate reasons. The document typically includes details about final settlements, company property return, confidentiality obligations, and other relevant termination terms. Its format and content may vary depending on the termination circumstances, but it must always maintain compliance with local employment laws and regulations.

What sections should be included in a Job Termination Letter?

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee with their full name and employee ID

2. Subject Line: Clear indication that this is a termination letter

3. Opening Statement: Direct statement of employment termination with reference to the employment contract

4. Termination Details: Specific details including last working day and notice period in compliance with Saudi Labor Law

5. Reason for Termination: Clear and legally compliant explanation for the termination decision

6. Final Settlement Information: Details of final salary, end of service benefits, and other entitlements as per Saudi Labor Law

7. Company Property Return: List of company assets to be returned and process for return

8. Confidentiality Reminder: Reminder of ongoing confidentiality obligations

9. Closing Statement: Professional closure including acknowledgment of service and future reference provision

10. Signature Block: Space for authorized signatory and employee acknowledgment

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

1. Garden Leave Provisions: Include when employee is being placed on garden leave during notice period

2. Non-Compete Reminder: Include when employment contract contains non-compete clauses

3. Transition Plan: Include when employee needs to handle knowledge transfer before departure

4. Settlement Agreement Reference: Include when termination is part of a mutual settlement agreement

5. Performance History Summary: Include in cases of performance-based termination

6. Grievance Procedure: Include when termination might be contested

7. Rehire Eligibility: Include statement about future employment eligibility when relevant

What schedules should be included in a Job Termination Letter?

1. Final Settlement Calculation: Detailed breakdown of final payment including salary, end of service benefits, and other entitlements

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

3. Exit Clearance Form: Standard form for departmental clearances

4. Benefits Continuation Notice: Details about post-employment benefits if applicable

5. Reference Letter Format: Standard format for future reference requests

6. Handover Document Template: Template for documenting handover of responsibilities

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

Document Type

Employment Form

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Banking & Finance

Technology

Manufacturing

Retail

Healthcare

Construction

Education

Oil & Gas

Telecommunications

Professional Services

Hospitality

Transportation & Logistics

Real Estate

Media & Entertainment

Public Sector

Non-Profit Organizations

Relevant Teams

Human Resources

Legal

Compliance

Administration

Operations

Management

Employee Relations

Risk Management

Corporate Services

General Counsel

Relevant Roles

HR Director

HR Manager

Legal Counsel

Compliance Officer

Department Manager

Line Manager

CEO

Managing Director

Operations Manager

Administrative Manager

Employee Relations Manager

HR Business Partner

Legal Manager

Risk Manager

General 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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