Document background
The Letter for Not Renewing Contract is a crucial document in Saudi Arabian employment relations, used when an employer decides not to extend or renew a fixed-term employment contract. This document must be issued in compliance with Saudi Labor Law, which requires proper notice periods and specific content requirements. It serves multiple purposes: formally documenting the non-renewal decision, ensuring legal compliance with notice requirements, and initiating the process for final settlement of employment benefits. The letter should be issued at least 30 days before the contract's expiration for monthly-paid employees, as mandated by Saudi Labor Law Article 75. It forms part of the employee's official employment record and may be required for future reference in legal or administrative proceedings.
