Document background
The Redundancy Letter is a crucial document used in Saudi Arabia when an organization needs to terminate employment due to business restructuring, economic conditions, or organizational changes. It must strictly comply with Saudi Labor Law requirements, including proper notice periods (30 days for monthly-paid employees), end-of-service benefits calculations, and final settlement details. This document serves as both legal protection for the employer and clear communication to the employee about their rights and entitlements. The letter should be drafted carefully to ensure it meets all legal requirements while maintaining professional courtesy and clarity. Typically used during company restructuring, downsizing, or closure of operations, the Redundancy Letter forms part of the official employment termination documentation and may be scrutinized by labor authorities in case of disputes.
