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The Clearance Authorization Letter is a mandatory document in Saudi Arabia's employment ecosystem, particularly crucial during the employment termination process. This document is required when an employee is leaving their position, whether through resignation, termination, or end of contract. It serves multiple purposes: confirming that all company assets have been returned, verifying that financial obligations have been settled, and providing necessary authorization for various administrative procedures. For expatriate workers, this document is essential for processing final exit visas or transferring sponsorship. The letter must comply with Saudi Labor Law requirements and often needs to be presented to various government authorities, including the Ministry of Human Resources and Social Development and, for expatriates, the General Directorate of Passports.

1. Letter Header: Company letterhead, date, reference number, and formal letter formatting

2. Addressee Details: Full name and details of the recipient/authority to whom the letter is addressed

3. Employee Information: Complete identification details including full name, ID/Iqama number, and position held

4. Employment Period: Specification of employment duration with start and end dates

5. Clearance Declaration: Formal statement confirming that the employee has cleared all obligations and returned company property

6. Financial Settlement: Confirmation that all financial matters have been settled, including final payments

7. Authorization Statement: Explicit authorization for the employee to proceed with relevant procedures

8. Signatory Details: Authorized signatory's name, position, and company stamp