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Employment Termination Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Employment Termination Agreement

"I need an Employment Termination Agreement under Saudi law for a mutual separation with our Sales Director, effective March 15, 2025, including standard end-of-service benefits and a 3-month non-compete clause."

Document background
The Employment Termination Agreement is a crucial document used in Saudi Arabia when formally ending an employment relationship by mutual consent. It ensures compliance with Saudi Labor Law and protects both employer and employee interests by clearly documenting the terms of separation, including final settlements, end-of-service benefits, and ongoing obligations. This agreement is particularly important in the Saudi context due to strict labor regulations and the need for proper documentation for government authorities, visa cancellation, and future employment transfers. The document typically includes provisions for financial settlements, property return, confidentiality, and any post-employment restrictions, all structured to align with local legal requirements and Sharia principles.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers

2. Background: Brief context of the employment relationship, including start date, position, and reason for termination

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specific date when employment relationship ends and final working day

5. Final Settlement: Details of all financial entitlements including salary, end of service benefits, and other dues

6. Statutory Entitlements: Confirmation of compliance with Saudi Labor Law requirements regarding benefits and entitlements

7. Company Property: Requirements for return of company assets, documents, and intellectual property

8. Full and Final Settlement: Mutual release of claims and confirmation of full settlement

9. Confidentiality: Ongoing obligations regarding confidential information

10. Governing Law: Confirmation of Saudi Law application and jurisdiction

11. Execution: Signature blocks and execution requirements

Optional Sections

1. Non-Compete Obligations: Post-employment restrictions on working with competitors (include if originally part of employment contract)

2. Non-Solicitation: Restrictions on soliciting employees or customers (if applicable to employee's role)

3. Transition Arrangements: Details of handover process and knowledge transfer (for senior or specialized roles)

4. Reference and Communications: Agreement on how future employment references will be handled

5. Outstanding Leave: Treatment of unused vacation days (if applicable)

6. Continuing Obligations: Any ongoing duties or obligations post-termination

7. Medical Insurance Extension: Details of any continued medical coverage (if offered)

8. Share Options/Benefits: Treatment of any share options or long-term benefits (for eligible employees)

Suggested Schedules

1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial elements including salary, end of service benefits, and other entitlements

2. Schedule 2 - Company Property Register: List of all company property to be returned

3. Schedule 3 - Benefits Summary: Summary of benefits and their treatment post-termination

4. Appendix A - Handover Checklist: Detailed list of tasks and documents to be handed over before departure

5. Appendix B - Confidential Information: Specific list of confidential information and documents covered by confidentiality obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




























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Relevant Industries

Banking & Financial Services

Oil & Gas

Construction

Manufacturing

Technology

Healthcare

Retail

Professional Services

Education

Telecommunications

Real Estate

Transportation & Logistics

Hospitality

Mining

Government & Public Sector

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Administration

Research & Development

Customer Service

Production

Quality Assurance

Business Development

Compliance

Strategy

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

Financial Controller

Human Resources Manager

Operations Manager

Sales Director

Technical Specialist

Software Engineer

Account Manager

Administrative Officer

Production Supervisor

Research Analyst

Marketing Executive

Legal Counsel

Customer Service Representative

Business Development 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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