Document background
The Separation And Release Agreement is a crucial document used in Saudi Arabia when formally ending an employment relationship by mutual agreement or unilateral termination. It serves as a comprehensive record of the termination terms while ensuring compliance with Saudi Labor Law, Sharia principles, and local regulations. This document is particularly important in the Saudi context due to strict labor laws and the need to properly document end-of-service benefits, which are mandatory under local legislation. The agreement typically includes detailed calculations of final settlements, addresses confidentiality requirements, and provides mutual releases to prevent future disputes. It's especially relevant for both Saudi and multinational companies operating in Saudi Arabia, particularly when dealing with senior executives, expatriate employees, or sensitive terminations where legal certainty is paramount.
