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Letter For Ending Contract Template for Saudi Arabia

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Letter For Ending Contract

"I need a Letter For Ending Contract for a senior software developer in Riyadh, Saudi Arabia, with a three-month notice period starting March 1, 2025, including clauses for project handover and strict non-compete provisions for 12 months."

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What is a Letter For Ending Contract?

The Letter For Ending Contract is a crucial document in Saudi Arabian employment relations, used when an employer needs to formally terminate an employment relationship. It must be drafted in accordance with Saudi Labor Law (Royal Decree No. M/51) and subsequent amendments, ensuring compliance with local regulatory requirements regarding notice periods, end-of-service benefits, and termination procedures. This document is essential for proper documentation of employment termination, protecting both employer and employee interests, and ensuring a clear record of the separation terms. The letter should be prepared when employment termination is decided upon, whether due to contract expiration, mutual agreement, or unilateral termination, and must include specific elements required by Saudi law such as notice period, final settlement details, and appropriate authorizations.

What sections should be included in a Letter For Ending Contract?

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

2. Employee Information: Full name, employee ID, position, and department of the employee

3. Subject Line: Clear indication that this is a contract termination notice

4. Termination Statement: Clear statement of contract termination with specific end date

5. Notice Period: Specification of the notice period as per Saudi Labor Law and the original employment contract

6. Reason for Termination: Brief, professional explanation of the termination reason if applicable

7. Final Settlement: Information about final salary, end-of-service benefits, and other entitlements

8. Company Property: Request for return of company property and documentation

9. Acknowledgment: Space for employee signature acknowledging receipt of the termination letter

10. Authorized Signature: Signature block for authorized company representative

What sections are optional to include in a Letter For Ending Contract?

1. Non-Compete Reminder: Include when the employee's contract contains non-compete clauses that remain effective after termination

2. Handover Instructions: Include when the employee needs to transfer responsibilities or ongoing projects

3. Exit Interview: Include when company policy requires an exit interview

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

5. Severance Package: Include when offering additional benefits beyond statutory requirements

6. Continuation of Benefits: Include when certain benefits will continue for a specified period post-termination

What schedules should be included in a Letter For Ending Contract?

1. Final Settlement Calculation: Detailed breakdown of final payment including salary, end-of-service benefits, and other entitlements

2. Company Property Checklist: List of company assets to be returned before final clearance

3. Handover Document Template: Standard form for documenting the transfer of responsibilities

4. Clearance Form: Document requiring signatures from various departments confirming no pending dues or items

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

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Relevant Industries

Banking & Finance

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Technology

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Government & Public Sector

Relevant Teams

Human Resources

Legal

Compliance

Corporate Secretariat

Executive Management

Operations

Administration

Employee Relations

Relevant Roles

HR Manager

Legal Counsel

HR Director

Company Secretary

HR Administrator

Legal Manager

Compliance Officer

HR Business Partner

Department Director

Operations Manager

General Manager

Managing Director

Chief Human Resources Officer

Employment Law Specialist

HR Operations 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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