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Contract Termination Letter Non Renewal for Saudi Arabia

Contract Termination Letter Non Renewal Template for Saudi Arabia

A Contract Termination Letter Non Renewal is a formal document used in Saudi Arabia to communicate the employer's decision not to renew a fixed-term employment contract. The document must comply with Saudi Labor Law requirements, including proper notice periods and end-of-service benefit calculations. It serves as an official record of the employment termination through non-renewal and outlines important details such as the final working day, settlement of dues, and handover requirements. The letter must adhere to specific provisions under Saudi Labor Law, particularly Articles 74, 75, and 84, which govern contract termination procedures and employee entitlements.

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What is a Contract Termination Letter Non Renewal?

The Contract Termination Letter Non Renewal is a crucial document used in Saudi Arabian employment relations when an employer decides not to extend or renew a fixed-term employment contract. This document must be issued in accordance with Saudi Labor Law, which requires proper notice periods (typically 60 days before contract expiry for contracts renewed for three years or more, or 30 days for others). The letter serves multiple purposes: it formally communicates the non-renewal decision, confirms the final working day, outlines the settlement of end-of-service benefits, and addresses practical matters such as company property return and knowledge transfer. It's essential for maintaining clear documentation of the employment termination process and ensuring compliance with local labor regulations, particularly for businesses operating in Saudi Arabia where employment matters are strictly regulated.

What sections should be included in a Contract Termination Letter Non Renewal?

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

2. Subject Line: Clear indication that this is a Contract Termination Notice - Non-Renewal

3. Contract Reference: Reference to the existing employment contract, including its date and any relevant reference numbers

4. Non-Renewal Statement: Clear statement of the intention not to renew the contract, citing the relevant contract clause and Saudi Labor Law provisions

5. End Date: Specific mention of the contract end date and last working day

6. Notice Period Confirmation: Confirmation that the notice period complies with Article 75 of Saudi Labor Law

7. Final Settlement: Information about the end-of-service benefits, final salary, and other entitlements as per Saudi Labor Law

8. Company Property: Request for return of company property and details of the handover process

9. Appreciation: Professional acknowledgment of the employee's service

10. Closing: Formal closing, signature block for authorized signatory

What sections are optional to include in a Contract Termination Letter Non Renewal?

1. Transition Arrangements: Include when handover of duties or projects is required before departure

2. Non-Compete Reminder: Include if the original contract contains non-compete or confidentiality clauses that continue after employment

3. Reference Offer: Include if the company is willing to provide employment references

4. Exit Interview: Include if the company wishes to conduct an exit interview

5. Visa/Sponsorship Information: Include for expatriate employees requiring sponsorship transfer or visa cancellation

What schedules should be included in a Contract Termination Letter Non Renewal?

1. Final Settlement Calculation: Detailed breakdown of end-of-service benefits, unused leave, and other entitlements

2. Company Property Checklist: List of company assets to be returned before the last working day

3. Handover Document Template: Template for documenting the handover of responsibilities and ongoing projects

4. Acknowledgment Receipt: Form for the employee to acknowledge receipt of the termination letter

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

Cancellation Letter

Sector

Sales

Cost

Free to use
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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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