The Liquidation Letter To Employees is a crucial document used when a company in Saudi Arabia enters liquidation proceedings and needs to formally notify its workforce of the termination of employment. This document must strictly comply with Saudi Labor Law requirements, including Royal Decree No. M/51 and related regulations. The letter serves multiple purposes: it officially communicates the company's liquidation status, specifies the timeline for employment termination, outlines the calculation of final settlements and end-of-service benefits, and provides essential information about the transition process. The document is typically prepared in coordination with legal advisors to ensure all statutory requirements are met and employees' rights are properly addressed under Saudi law. It forms part of the official documentation required during the liquidation process and may be subject to review by relevant authorities.
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1. Company Letterhead and Date: Official company letterhead including company details, date, and reference number
2. Employee Details: Specific employee information including name, employee ID, position, and department
3. Notification of Company Liquidation: Clear statement of the company's liquidation decision and effective date
4. Legal Basis: Reference to relevant Saudi Labor Law provisions and company's legal right to terminate employment
5. Last Working Day: Clear specification of the employee's final working day and notice period details
6. Financial Entitlements: Overview of final settlement including salary, end-of-service benefits, and other entitlements
7. Handover Requirements: Instructions for returning company property and handover procedures
8. Contact Information: Details of HR/liquidation team for queries and support
9. Acknowledgment: Space for employee signature and date of receipt
1. Continuation of Benefits: Details about any extended medical insurance or benefits, used when the company offers post-termination benefit continuation
2. Rehiring Possibility: Information about potential rehiring by sister companies or new entities, included when such opportunities exist
3. Outplacement Support: Details of any career transition services offered, included when the company provides such support
4. Special Project Completion: Instructions for employees involved in critical projects, used for key personnel needed during wind-down
5. Visa/Residency Status: Special instructions for expatriate employees regarding visa status, used for foreign workers
1. Final Settlement Calculation Sheet: Detailed breakdown of all financial entitlements including salary, gratuity, and other benefits
2. Company Property Checklist: List of company assets to be returned with confirmation checkboxes
3. Employee Clearance Form: Departmental clearance requirements and sign-off sheet
4. Benefits Summary: Detailed information about any continuing benefits and their duration
5. Important Contacts List: Contact details for HR, liquidation team, and other relevant departments
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Financial Services
Technology
Construction
Healthcare
Education
Hospitality
Transportation
Energy
Mining
Real Estate
Professional Services
Telecommunications
Media and Entertainment
Relevant Teams
Human Resources
Legal
Finance
Operations
Administration
Information Technology
Sales
Marketing
Customer Service
Production
Research and Development
Quality Assurance
Facilities Management
Supply Chain
Corporate Communications
Relevant Roles
Chief Executive Officer
Managing Director
Department Manager
Supervisor
Administrative Assistant
Technical Specialist
Sales Representative
Operations Manager
Financial Analyst
HR Coordinator
Marketing Executive
Project Manager
Research Analyst
Customer Service Representative
Production Worker
Software Developer
Account Manager
Logistics Coordinator
Quality Control Inspector
Maintenance Technician
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