Document background
The Mutual Termination of Employment agreement is utilized when both employer and employee in Saudi Arabia agree to end their employment relationship amicably. This document is essential for ensuring compliance with Saudi Labor Law and protecting both parties' interests during the separation process. It becomes relevant when circumstances such as organizational restructuring, career changes, or mutual agreement to part ways arise. The agreement comprehensively addresses mandatory requirements under Saudi law, including end-of-service benefits calculation, final settlements, and clearance procedures. It also covers important aspects such as confidentiality obligations, handover requirements, and release of claims. For foreign employees, it additionally addresses visa-related matters and repatriation requirements. The document serves as a crucial tool for documenting the consensual nature of the termination and preventing future disputes.
