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End Of Service Agreement Letter Template for Saudi Arabia

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Key Requirements PROMPT example:

End Of Service Agreement Letter

"I need an End of Service Agreement Letter for a senior IT manager in Riyadh who is voluntarily resigning effective March 15, 2025, with special attention to confidentiality provisions and ongoing non-compete obligations for 12 months."

Document background
The End of Service Agreement Letter is a crucial document used in Saudi Arabia when an employment relationship is terminated, whether through resignation, termination, or mutual agreement. It is designed to comply with Saudi Labor Law requirements and ensures proper documentation of the employment termination process. The document typically includes detailed calculations of end-of-service benefits, final settlements, outstanding dues, and mutual releases. It serves multiple purposes: providing legal protection for both parties, ensuring compliance with local labor regulations, documenting the return of company property, and establishing clear terms for post-employment obligations. This document is particularly important in Saudi Arabia due to strict labor law requirements regarding end-of-service benefits and proper documentation of employment termination.
Suggested Sections

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

2. Employment Details: Statement of employee's name, position, employee ID, and duration of employment

3. Termination Information: Clear statement of employment termination date and type (resignation/termination)

4. End of Service Benefits Calculation: Detailed breakdown of the end-of-service award calculation as per Saudi Labor Law

5. Final Settlement Details: Itemized list of all final payments including salary, unused leave, and other entitlements

6. Acknowledgment of Settlements: Statement confirming full and final settlement of all dues and obligations

7. Return of Company Property: List of company properties to be returned before final settlement

8. Closure of Benefits: Information about termination of benefits like medical insurance, housing allowance

9. Authentication: Signature blocks for authorized company representative and employee

Optional Sections

1. Non-Compete Clause: Include for senior positions or employees with access to sensitive information

2. Confidentiality Reminder: Include when employee had access to confidential information

3. Outstanding Loans/Advances: Include if there are any outstanding financial obligations to be settled

4. Special Awards/Recognition: Include for long-serving employees or special contribution cases

5. Reference Provision: Include when company agrees to provide employment references

6. Ongoing Benefits: Include if any benefits continue post-employment

Suggested Schedules

1. Schedule A - End of Service Benefit Calculation: Detailed mathematical calculation of end of service benefits as per Saudi Labor Law

2. Schedule B - Final Settlement Statement: Itemized statement of all final payments and deductions

3. Schedule C - Company Property Checklist: Detailed list of company properties to be returned

4. Appendix 1 - Statutory Declarations: Required declarations under Saudi Labor Law

5. Appendix 2 - Benefits Summary: Summary of all benefits and their termination dates

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

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Human Resources

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Chief Executive Officer

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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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