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Discontinuing Service Letter

Discontinuing Service Letter Template for Saudi Arabia

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Key Requirements PROMPT example:

Discontinuing Service Letter

"I need a Discontinuing Service Letter under Saudi Arabian law for terminating an IT manager's services due to company restructuring, with a three-month notice period starting March 1, 2025, including clauses for knowledge transfer and maintaining confidentiality of ongoing projects."

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Document background
The Discontinuing Service Letter is a crucial document in Saudi Arabian employment relations, used when an employer needs to formally terminate an employment relationship. It must comply with Saudi Labor Law (Royal Decree No. M/51) and related regulations, which mandate specific content and procedures for employment termination. The document serves multiple purposes: it officially notifies the employee of the service discontinuation, documents the termination date and terms, outlines the notice period and final settlement arrangements, and helps ensure legal compliance. This letter is particularly important in Saudi Arabia's employment landscape, where proper documentation of employment termination is essential for both legal protection and administrative purposes. The format and content must be carefully structured to include all legally required information while maintaining professional standards and protecting both parties' rights under Saudi law.
Suggested Sections

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee

2. Subject Line: Clear indication that this is a Service Discontinuation Notice

3. Employee Information: Employee's full name, ID number, position, and department

4. Notice of Discontinuation: Clear statement of the decision to discontinue services

5. Effective Date: Specific date when the service discontinuation takes effect

6. Notice Period: Statement of the notice period as per Saudi Labor Law and how it will be handled

7. Final Settlement: Information about final salary, end of service benefits, and settlement process

8. Company Property: Instructions regarding the return of company property and documents

9. Closing Statement: Professional closing with acknowledgment of service and future cooperation

10. Signature Block: Authorized signatory details and company stamp

Optional Sections

1. Reason for Discontinuation: Include when the termination is for a specific cause that needs to be documented

2. Transition Arrangements: Include when specific handover procedures or knowledge transfer is required

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

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

5. Confidentiality Reminder: Include when there are specific confidentiality obligations to reinforce

6. Outstanding Obligations: Include when there are specific outstanding obligations or dues to be addressed

Suggested Schedules

1. End of Service Benefits Calculation: Detailed calculation of end of service benefits as per Saudi Labor Law

2. Final Settlement Statement: Itemized list of final payment components including salary, benefits, and deductions

3. Company Property Checklist: List of company property to be returned with current status

4. Clearance Form: Standard form for obtaining departmental clearances before final settlement

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

alex.den.21@genieai.co
Relevant legal definitions















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Relevant Industries

Banking & Financial Services

Technology

Manufacturing

Retail

Healthcare

Education

Construction

Oil & Gas

Professional Services

Telecommunications

Hospitality

Real Estate

Transportation & Logistics

Mining

Media & Entertainment

Relevant Teams

Human Resources

Legal

Compliance

Administration

Personnel Management

Employee Relations

Corporate Governance

Operations Management

Executive Leadership

Relevant Roles

Human Resources Manager

Legal Counsel

HR Director

Compliance Officer

HR Business Partner

Department Manager

Operations Manager

HR Administrator

Company Secretary

Legal Manager

Employee Relations Manager

HR Operations Manager

Chief Human Resources Officer

Personnel Manager

Administrative Manager

Industries






Teams

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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