Document background
The Termination By Agreement document is essential when both employer and employee in Saudi Arabia mutually agree to end their employment relationship. This document is typically used when parties wish to part ways amicably and document their agreement formally, ensuring compliance with Saudi Labor Law and protecting both parties' interests. It becomes particularly relevant during corporate restructuring, voluntary separations, or when alternative employment arrangements are sought. The agreement must carefully address end-of-service benefits, final settlements, and post-employment obligations as required by Saudi regulations. For expatriate employees, additional considerations regarding visa status and exit procedures must be included. The document serves as crucial evidence of the voluntary nature of the termination, which can be important for future employment relationships and regulatory compliance.
