Document background
The Friendly Termination of Services Letter is utilized when both employer and employee in Saudi Arabia mutually agree to end their employment relationship on amicable terms. This document is essential in situations where the separation is consensual and both parties wish to formalize the termination process in compliance with Saudi Labor Law. The letter serves multiple purposes: it confirms the mutual agreement to terminate, specifies the final working day, outlines the settlement of dues and benefits, addresses company property return, and includes any continuing obligations. As a formal document, it provides legal protection for both parties and helps prevent future disputes. The Friendly Termination of Services Letter must comply with Saudi labor regulations, particularly regarding notice periods, end-of-service benefits calculation, and final settlement procedures. It's particularly relevant in scenarios of voluntary separation, organizational restructuring, or when an employee is moving to new opportunities with the employer's support.
