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The Terminate Employment Letter is a crucial document used in Saudi Arabia when formally ending an employment relationship. It must strictly comply with Saudi Labor Law (Royal Decree No. M/51) and recent reforms under Saudi Vision 2030. This document is essential when terminating employment for any reason, including resignation, redundancy, or performance-based termination. The letter serves multiple purposes: it officially documents the termination date, confirms the notice period, outlines the final settlement including end of service benefits, and addresses the return of company property. It should be drafted carefully to ensure all legal requirements are met, particularly regarding notice periods (30 days for monthly paid workers, 15 days for others) and the calculation of end of service benefits. The document also plays a crucial role in maintaining clear records for both labor office compliance and potential future reference.

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee with their full name and employee ID

2. Subject Line: Clear indication that this is a termination of employment letter

3. Employment Details: Confirmation of current position, department, and employment start date

4. Termination Notice: Clear statement of termination decision with effective date and notice period as per Saudi Labor Law

5. Reason for Termination: Brief, professional explanation of termination reason in compliance with Article 74 of Saudi Labor Law

6. Final Settlement: Overview of final payment including salary, end of service benefits, and other entitlements as per Saudi Labor Law

7. Company Property: Request for return of company assets and property

8. Closure: Expression of appreciation for service and formal signature block