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Job Cancellation Letter for Saudi Arabia

Job Cancellation Letter Template for Saudi Arabia

A Job Cancellation Letter is a formal document used in Saudi Arabia to officially terminate an employment relationship between an employer and employee. This document must comply with Saudi Labor Law (Royal Decree No. M/51) and related regulations, including specific requirements for notice periods, end-of-service benefits, and proper documentation. The letter serves as a legal record of employment termination and outlines important details such as the effective date, notice period, final settlement information, and any post-employment obligations. It needs to be drafted in accordance with both Sharia law principles and Saudi labor regulations, ensuring all statutory requirements are met.

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What is a Job Cancellation Letter?

The Job Cancellation Letter is a crucial document in Saudi Arabian employment law, used when an employer needs to formally terminate an employment relationship. It must be drafted in strict compliance with Saudi Labor Law (Royal Decree No. M/51) and related regulations, considering both statutory requirements and Sharia law principles. The letter serves multiple purposes: it officially documents the termination decision, specifies the notice period, outlines the final settlement details, and addresses post-employment obligations. This document is essential for legal compliance and protecting both employer and employee rights in the termination process. The Job Cancellation Letter should include specific elements required by Saudi law, such as notice periods (30 days for monthly paid workers, 15 days for others), end-of-service benefits calculations, and proper documentation of company property return.

What sections should be included in a Job Cancellation Letter?

1. Header Details: 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 job cancellation/termination letter

3. Employment Details: Current position, department, and duration of employment

4. Termination Statement: Clear statement of employment termination with effective date

5. Notice Period: Specification of notice period as per Saudi Labor Law (30 days for monthly paid workers, 15 days for others)

6. Final Settlement: Information about final salary, end-of-service benefits, and other entitlements

7. Company Property: Request for return of company property and cancellation of access rights

8. Acknowledgment: Space for employee signature acknowledging receipt of the letter

9. Contact Information: HR department contact details for any queries

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

1. Reason for Termination: Include when termination is due to specific reasons like misconduct, company restructuring, or poor performance

2. Handover Instructions: Include when employee handles critical responsibilities requiring formal handover

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

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

5. Continuation of Benefits: Include when certain benefits continue post-termination

6. Exit Interview: Include when company requires an exit interview

What schedules should be included in a Job Cancellation Letter?

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

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

3. Employee Clearance Form: Checklist for various department clearances

4. Benefits Summary: Summary of benefits and their status post-termination

Authors

Alex Denne

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Cancellation Letter

Sector

Sales

Cost

Free to use
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Banking and Financial Services

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Relevant Roles

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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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