The Employer Notice of Termination is a crucial document used when an employer in Saudi Arabia decides to end an employment relationship. This document must strictly adhere to the provisions of Saudi Labor Law (Royal Decree No. M/51) and related regulations, which govern the employment termination process. The notice serves multiple purposes: it formally communicates the termination decision, specifies the notice period, outlines the reasons for termination, and details the final settlement arrangements. It's essential for ensuring legal compliance, maintaining clear communication, and protecting both employer and employee rights during the termination process. The document should be prepared with careful consideration of statutory requirements, including proper notice periods, legitimate grounds for termination, and calculation of end-of-service benefits as mandated by Saudi law.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee
2. Employee Details: Full name, employee ID, position, and department of the employee being terminated
3. Notice of Termination Statement: Clear statement declaring the termination of employment and the effective date
4. Notice Period: Specification of the notice period as per Saudi Labor Law and the employment contract
5. Reason for Termination: Statement of the legal grounds for termination in accordance with Saudi Labor Law
6. Final Settlement Information: Overview of final payments including salary, end of service benefits, and other entitlements
7. Company Property Return: List of company assets to be returned before the last working day
8. Handover Requirements: Instructions regarding the handover of work responsibilities and documents
9. Closing Statement: Professional closure including contact information for HR department
10. Signature Block: Space for authorized signatory details and signature
1. Garden Leave Clause: Used when the employer wishes to place the employee on garden leave during the notice period
2. Non-Competition Reminder: Include when the employee is bound by non-competition clauses in their employment contract
3. Performance Issues: When termination is due to documented performance issues, include reference to previous warnings
4. Severance Package: When offering additional benefits beyond statutory requirements
5. Continuation of Benefits: Details of any benefits that will continue post-termination
6. Exit Interview: When the company requires an exit interview as part of the termination process
7. References: Company policy regarding providing references for future employment
1. End of Service Calculation: Detailed calculation of end of service benefits as per Saudi Labor Law
2. Final Settlement Statement: Itemized list of all final payments and deductions
3. Company Property Checklist: Detailed list of company assets to be returned with current status
4. Previous Warning Letters: Copies of any relevant warning letters if termination is performance-based
5. Handover Checklist: Detailed list of documents and responsibilities to be handed over
6. Exit Clearance Form: Form requiring signatures from various departments confirming clearance
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Construction
Manufacturing
Oil and Gas
Technology
Retail
Healthcare
Education
Professional Services
Telecommunications
Hospitality
Transportation and Logistics
Real Estate
Government and Public Sector
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Management
Administration
Corporate Governance
Operations
Relevant Roles
HR Manager
Legal Counsel
HR Director
Company Secretary
HR Business Partner
Employee Relations Manager
HR Operations Manager
Legal Manager
Compliance Officer
Department Manager
Line Manager
HR Administrator
CEO
Managing Director
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