Document background
The Termination And Mutual Release Agreement is a crucial document used in Saudi Arabia when parties wish to formally end their business or employment relationship while ensuring mutual protection from future claims. It is particularly relevant in situations involving employment terminations, commercial contract terminations, joint venture dissolutions, or service agreement conclusions. The document must comply with Saudi Arabian law, including Islamic Sharia principles and the Saudi Labor Law, particularly regarding the calculation of end-of-service benefits and settlement terms. It typically includes provisions for final payments, return of property, confidentiality obligations, and surviving obligations. The agreement serves as a comprehensive record of the termination terms and helps prevent future disputes by clearly documenting the parties' agreement to release each other from claims arising from their prior relationship.
