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Break Contract Letter Template for Saudi Arabia

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Key Requirements PROMPT example:

Break Contract Letter

"I need a Break Contract Letter under Saudi law for an employee resigning from a senior management position, giving three months' notice starting January 15, 2025, with specific provisions for the handover of ongoing projects and client relationships."

Document background
The Break Contract Letter is a crucial document in Saudi Arabian employment law, used when either an employer or employee wishes to formally terminate an employment relationship. This document must strictly adhere to Saudi Labor Law requirements and Sharia principles, particularly regarding notice periods and end of service benefits. The letter should be used when there is a need to document the formal termination of employment, whether it's a mutual agreement, resignation, or termination initiated by the employer. It typically includes essential information such as termination date, notice period, final settlement details, and handover requirements. The document serves as a legal record of the termination and helps ensure compliance with local regulations while protecting both parties' rights.
Suggested Sections

1. Header Information: Date, recipient's name, position, company details, and reference numbers

2. Subject Line: Clear indication that this is a contract termination notice

3. Opening Statement: Formal greeting and reference to the existing contract including its date and nature

4. Notice of Termination: Clear statement of intent to terminate the contract and the effective date

5. Notice Period Details: Specification of the notice period being given in compliance with Saudi Labor Law

6. Handover Requirements: Details of any company property, documents, or responsibilities that need to be returned or transferred

7. Final Settlement: Reference to end of service benefits and final settlement arrangements

8. Closing Statement: Professional closing with appreciation for the relationship and future cooperation

9. Signature Block: Space for signature, name, and title of the authorized person

Optional Sections

1. Reason for Termination: Include when there are specific reasons for termination that need to be documented, especially in cases of termination for cause

2. Non-Compete Reminder: Include when the original contract contained non-compete or confidentiality clauses that remain in effect

3. Transition Plan: Include when there are specific projects or responsibilities that need formal handover procedures

4. Legal Rights Reservation: Include when there are potential disputes or need to explicitly reserve legal rights

5. Return of Benefits: Include when there are specific company benefits (car, housing, etc.) that need to be addressed

Suggested Schedules

1. Final Settlement Calculation: Detailed breakdown of end of service benefits, unpaid salary, and other financial entitlements

2. Handover Checklist: List of items, documents, and responsibilities to be returned or transferred

3. Outstanding Obligations List: Summary of any remaining obligations or commitments from either party

Authors

Alex Denne

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

Relevant legal definitions



















Clauses















Relevant Industries

Banking and Financial Services

Construction

Manufacturing

Oil and Gas

Technology

Healthcare

Retail

Education

Professional Services

Hospitality

Transportation and Logistics

Real Estate

Telecommunications

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Executive Leadership

Operations

Administration

Corporate Governance

Relevant Roles

Human Resources Manager

Legal Counsel

HR Director

Company Director

Department Manager

HR Operations Manager

Legal Manager

Compliance Officer

HR Business Partner

Employee Relations Manager

Chief Human Resources Officer

General Manager

Managing Director

CEO

Line 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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