The End Of Service Contract Letter is a mandatory document required under Saudi Arabian labor law when terminating any employment relationship. It serves as the official documentation of employment termination and final settlements, protecting both employer and employee interests. This document must be issued when an employment contract ends due to resignation, retirement, contract completion, or termination, and needs to comply with the Saudi Labor Law requirements regarding end of service benefits calculations and settlement procedures. The letter includes critical information such as service duration, final benefit calculations, outstanding obligations, and clearance confirmations. It forms part of the official employment records and may be required for various purposes including visa cancellation, transfer of sponsorship, or future employment verification in Saudi Arabia.
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1. Letter Header and Date: Company letterhead, reference number, and date of issuance
2. Employee Information: Full name, employee ID, position, and department of the employee
3. Service Duration: Start and end dates of employment, total years of service
4. Reason for Termination: Clear statement of the termination reason (resignation, retirement, contract completion, etc.)
5. End of Service Benefits: Statement of end of service gratuity calculation as per Saudi Labor Law
6. Final Settlement: Breakdown of all final payments including salary, unused leave, and other entitlements
7. Clearance Confirmation: Confirmation that all company property has been returned and obligations fulfilled
8. Payment Method and Timing: Details of how and when the final settlement will be paid
9. Acknowledgment: Space for both employer and employee signatures
1. Non-Compete Clause: Include when the employee was subject to non-compete restrictions that continue post-employment
2. Outstanding Loans/Debts: Include when there are any outstanding company loans or debts to be settled
3. Continued Benefits: Include when certain benefits like medical insurance will continue for a specified period
4. Pending Projects Handover: Include when there are specific project handover requirements
5. References Provision: Include when agreeing to provide employment references
6. Confidentiality Reminder: Include when emphasizing ongoing confidentiality obligations
1. End of Service Benefit Calculation: Detailed calculation of the end of service benefits as per Saudi Labor Law
2. Final Settlement Statement: Itemized list of all payments and deductions
3. Company Property Checklist: List of company assets to be returned with confirmation of return
4. Leave Balance Statement: Calculation of unused leave days and corresponding payment
5. Outstanding Loans Statement: Details of any outstanding loans or advances and repayment arrangements
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