Document background
The Notice of Layoff is a crucial document used in Saudi Arabian business operations when an employer needs to terminate employment for business-related reasons such as restructuring, economic downturn, or organizational changes. This document must strictly adhere to Saudi Labor Law requirements, including proper notice periods (30 days for monthly-paid employees), end-of-service benefit calculations, and final settlement terms. The notice serves multiple purposes: it formally communicates the termination decision, ensures legal compliance, documents the terms of separation, and protects both employer and employee rights. When issuing a Notice of Layoff, employers must ensure all statutory requirements are met, including proper documentation of the business reasons for termination and accurate calculation of all entitled benefits.
