Document background
The Termination of Service Agreement is a critical document used when ending employment relationships in Saudi Arabia, whether through mutual agreement, resignation, or employer-initiated termination. This document serves to formalize the termination process while ensuring compliance with Saudi Labor Law and Shari'ah principles. It includes essential details such as the termination date, final settlement calculations, end-of-service benefits, and mutual releases. The agreement is particularly important in the Saudi context due to strict labor regulations and the need for clear documentation of employment termination. It helps protect both employer and employee interests by clearly stating all rights, obligations, and financial settlements, while ensuring adherence to local legal requirements regarding notice periods, benefit calculations, and post-employment obligations.
