Document background
The Retirement Letter To Employee is a crucial document used when an employee reaches retirement age or opts for voluntary retirement under Saudi Arabian labor law. It serves multiple purposes: officially documenting the retirement, confirming the effective date, detailing financial entitlements, and outlining the transition process. The letter must comply with Saudi Labor Law (Royal Decree No. M/51) and related regulations, including GOSI requirements and end-of-service benefit calculations. This document is particularly important in Saudi Arabia, where specific retirement ages are mandated (60 for men, 55 for women in the private sector), and strict regulations govern retirement benefits and procedures. The letter typically forms part of a larger retirement documentation package and may be required for various administrative purposes, including pension claims and final settlements.
