The Letter of Intent for Not Renewing Contract is a crucial document in Saudi Arabian employment relationships, used when an employer decides not to extend or renew a fixed-term employment contract. It must be issued in compliance with Saudi Labor Law, which requires proper notice periods (typically 60 days before contract expiration unless the contract specifies otherwise). This document serves multiple purposes: it provides formal notification to the employee, ensures legal compliance with labor regulations, initiates the contract closure process, and helps maintain clear documentation for both parties. The letter should be issued on company letterhead, include all relevant contract details, and clearly state the intention not to renew. It's particularly important in Saudi Arabia where employment relationships are strictly regulated and proper documentation is essential for both legal compliance and maintenance of good business practices.
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1. Letter Header and Date: Company letterhead, date, and reference number if applicable
2. Recipient Details: Employee's full name, position, employee ID, and current department
3. Subject Line: Clear indication that this is a Notice of Intent to Not Renew Employment Contract
4. Contract Reference: Details of the current employment contract including its date and reference number
5. Statement of Intent: Clear declaration of the company's intention not to renew the contract upon its expiration
6. End Date Confirmation: Specific mention of the contract's end date and last working day
7. Notice Period Confirmation: Confirmation that this notice complies with the required notice period under Saudi Labor Law
8. Next Steps: Information about handover process and final settlement procedures
9. Closing and Signature: Formal closing, name and signature of authorized representative, company stamp
1. Reason for Non-Renewal: Include when it's beneficial to document the reasoning for non-renewal, particularly for HR records
2. Appreciation Statement: Optional section expressing gratitude for the employee's service, recommended for maintaining positive relations
3. End of Service Benefits: Detailed breakdown of expected end of service benefits, if company policy allows sharing this information in advance
4. Non-Compete Reminder: Include if the original contract contains non-compete clauses that will remain in effect
5. Handover Instructions: Detailed instructions for knowledge transfer and asset return, if complex handover is required
1. Acknowledgment Receipt: Form for employee to sign confirming receipt of the non-renewal notice
2. Handover Checklist: List of items, documents, and responsibilities to be handed over before the last working day
3. Final Settlement Calculation: Preliminary calculation of end of service benefits and final dues (if company policy allows)
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