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A Termination Letter formally ends an employment relationship between a company and its worker in Saudi Arabia. It details the final working day, reasons for separation, and any remaining obligations under Saudi Labor Law - like end-of-service benefits, unused leave payments, or notice period requirements.

Following Ministry of Human Resources guidelines, these letters protect both employers and employees by clearly documenting the termination terms. They serve as essential proof for processing final settlements and help workers apply for new jobs or unemployment benefits. For fixed-term contracts, the letter must specify if the termination occurs before the agreed end date.

Issue a Termination Letter when ending any employment relationship in Saudi Arabia - from layoffs and contract completions to resignations and disciplinary dismissals. The timing matters: send it immediately after the termination decision but before the employee's last working day to comply with Saudi Labor Law notice requirements.

Use it to document misconduct-based terminations, redundancies during restructuring, or when an employee resigns. The letter becomes crucial for protecting your organization during labor disputes, processing end-of-service benefits, and maintaining proper HR records. It's especially important when terminating expatriate workers, as it affects their visa status and legal right to remain in the Kingdom.

• Staff Termination Letter: Standard format for general employment terminations, covering basic separation terms and final settlements
• Letter For Not Renewing Contract: Used when fixed-term contracts expire without renewal, requiring 30 days notice under Saudi labor law
• Contract Finish Letter: Confirms successful completion of project-based or temporary employment agreements
• Termination Letter To Employee For Unacceptable Behaviour: Documents misconduct-based dismissals with specific violations and disciplinary grounds

• HR Directors and Managers: Draft and issue Termination Letters, ensure compliance with Saudi Labor Law, and maintain proper documentation
• Company Leadership: Review and approve termination decisions, especially for senior positions or mass layoffs
• Legal Department: Reviews letter content to ensure legal compliance and protect company interests
• Terminated Employees: Receive and acknowledge the letter, use it for final settlement claims and future employment
• Ministry of Human Resources: May review letters during labor disputes or visa cancellation processes
• Labor Courts: Reference these letters when resolving employment disputes or determining compensation

• Employee Details: Gather full name, employee ID, position, and hire date from HR records
• Termination Specifics: Document the exact reason, last working day, and notice period per Saudi Labor Law
• Financial Settlement: Calculate end-of-service benefits, unused leave, and final salary details
• Company Obligations: List pending handover tasks, company property returns, and confidentiality requirements
• Legal Compliance: Use our platform's Saudi-compliant templates to ensure all mandatory elements are included
• Internal Approval: Get sign-off from HR director and department head before issuing the letter

• Company Details: Official letterhead with full legal name, commercial registration number, and address
• Employee Information: Full name, ID number, position title, and employment start date
• Termination Basis: Clear statement of legal grounds under Saudi Labor Law Articles 74-80
• Notice Period: Specific mention of notice period or payment in lieu as per contract terms
• Final Settlement: Breakdown of end-of-service benefits, outstanding salary, and leave balance
• Exit Procedures: Company property return, confidentiality obligations, and handover requirements
• Signature Block: Authorized signatory details and space for employee acknowledgment

A Termination Letter differs significantly from a Disciplinary Letter in both purpose and timing within Saudi employment relationships. While both documents address workplace issues, they serve distinct legal functions under Saudi Labor Law.

• Purpose and Outcome: Termination Letters end employment relationships definitively, while Disciplinary Letters aim to correct behavior and maintain employment
• Legal Requirements: Termination Letters must include final settlement details and notice periods, whereas Disciplinary Letters focus on specific violations and improvement plans
• Timing of Use: Disciplinary Letters typically come before termination as part of progressive discipline, serving as documented warnings
• Financial Implications: Termination Letters outline end-of-service benefits and final payments, while Disciplinary Letters may only mention penalties or salary deductions
• Administrative Process: Termination Letters trigger visa cancellation and employment record closure; Disciplinary Letters remain internal HR documents