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Mutual Agreement Termination Letter

Mutual Agreement Termination Letter Template for Saudi Arabia

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Key Requirements PROMPT example:

Mutual Agreement Termination Letter

"I need a Mutual Agreement Termination Letter for an employment contract in Saudi Arabia, with an effective termination date of March 1, 2025, including standard end of service benefits calculation and a clause about providing a positive reference letter."

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Document background
The Mutual Agreement Termination Letter is a crucial document used in Saudi Arabia when parties wish to formally end their contractual relationship by mutual consent. This document is particularly important in the Saudi Arabian context, where employment relationships are strictly regulated by the Ministry of Human Resources and Social Development (MHRSD) and must comply with both Saudi Labor Law and Sharia principles. The letter serves multiple purposes: it documents the voluntary nature of the termination, specifies the effective date, outlines any financial settlements including end of service benefits, and provides mutual releases from future claims. It's commonly used in situations where both parties agree to end their relationship amicably, whether in employment contexts or business partnerships, and requires careful consideration of local legal requirements and cultural sensitivities.
Suggested Sections

1. Letter Header: Date, reference number, and formal address of both parties including their official registration details

2. Subject Line: Clear indication that this is a Mutual Agreement Termination Letter

3. Opening Statement: Reference to the original agreement being terminated and confirmation of mutual consent

4. Original Agreement Details: Brief description of the agreement being terminated, including its date and key identifying details

5. Termination Date: Clear statement of when the termination becomes effective

6. Settlement Terms: Overview of any financial settlements, including end of service benefits as per Saudi Labor Law

7. Mutual Release: Statement that both parties release each other from future obligations and claims

8. Acknowledgment: Confirmation that both parties understand and agree to the termination terms

9. Signature Block: Space for signatures of authorized representatives from both parties

Optional Sections

1. Ongoing Obligations: Used when certain obligations survive termination, such as confidentiality or non-compete clauses

2. Return of Property: Include when there are company assets or documents to be returned

3. Outstanding Payments: Required when there are specific payment arrangements or settlements to be detailed

4. Government Notifications: Include when specific notifications to MHRSD or other authorities are required

5. Non-Disparagement: Optional clause for maintaining professional conduct post-termination

6. References: Include if parties agree on how future employment references will be handled

Suggested Schedules

1. Financial Settlement Schedule: Detailed breakdown of all financial settlements, including end of service benefits calculation

2. Asset Return List: Itemized list of company property to be returned, if applicable

3. Outstanding Obligations List: List of any continuing obligations or pending matters to be resolved

4. Required Government Forms: Copies of any mandatory government forms or notifications required under Saudi law

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

alex.den.21@genieai.co
Relevant legal definitions




















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Relevant Industries

Banking and Finance

Construction

Manufacturing

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Technology

Retail

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Relevant Teams

Human Resources

Legal

Executive Leadership

Compliance

Finance

Operations

Administration

Corporate Governance

Risk Management

Employee Relations

Relevant Roles

HR Manager

Legal Counsel

Managing Director

CEO

CFO

Operations Manager

Department Head

HR Director

Compliance Officer

General Manager

Regional Manager

Contract Administrator

Business Owner

Partner

Board Member

Company Secretary

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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