The Work Separation Agreement is a crucial document used in Saudi Arabia when formally ending an employment relationship through mutual agreement or unilateral termination. It ensures compliance with Saudi Labor Law (Royal Decree No. M/51) and related regulations while protecting both employer and employee interests. The document typically becomes necessary during corporate restructuring, voluntary resignations, or mutually agreed terminations, providing clear documentation of final settlements, end-of-service benefits, and ongoing obligations. It must align with local labor office requirements and often requires ratification by the Ministry of Human Resources and Social Development to be fully enforceable.
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Key Requirements PROMPT example:
Work Separation Agreement
"I need a Work Separation Agreement for a senior executive in our Saudi manufacturing company who is leaving by mutual consent on March 1, 2025, with special attention to stock options and continued health benefits for 6 months."
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers
2. Background: Brief overview of the employment relationship, including start date and position
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date when employment relationship ends and confirmation of last working day
5. Final Settlement: Breakdown of all financial entitlements including salary, end of service benefits, and other dues
6. Release and Waiver: Mutual release of claims and liabilities between parties
7. Company Property: Requirements for return of company assets, documents, and intellectual property
8. Confidentiality: Ongoing obligations regarding confidential information
9. Non-Disparagement: Mutual agreement not to make negative statements about each other
10. Governing Law: Confirmation of Saudi Law application and jurisdiction
11. Acknowledgment: Employee's confirmation of understanding and voluntary acceptance
1. Garden Leave: Terms of paid leave period before final termination, if applicable
2. Non-Competition: Post-employment restrictions on working with competitors, if part of original employment contract
3. Continuation of Benefits: Any extended medical or other benefits post-termination
4. Repatriation: Terms for expatriate employee repatriation, if applicable
5. Training Costs Recovery: Terms for recovering training investments, if applicable
6. References: Agreement on handling future employment references
7. Outstanding Loans: Settlement of any outstanding loans or advances from employer
8. Share Options/Benefits: Treatment of any outstanding share options or long-term benefits
1. Schedule 1 - Final Settlement Calculation: Detailed breakdown of all financial entitlements and deductions
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Benefits Summary: Details of any benefits and their termination dates
4. Appendix A - Original Employment Contract: Reference copy of the original employment contract
5. Appendix B - Employee Clearance Form: Departmental clearance checklist
6. Appendix C - Confidential Information Definition: Detailed description of what constitutes confidential information
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Manufacturing
Technology
Oil and Gas
Construction
Retail
Healthcare
Education
Telecommunications
Professional Services
Hospitality
Transportation and Logistics
Real Estate
Mining
Media and Entertainment
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Finance
Payroll
Executive Leadership
Risk Management
Relevant Roles
Human Resources Director
Legal Counsel
HR Manager
Compliance Officer
HR Business Partner
Legal Manager
Employee Relations Manager
HR Operations Manager
Compensation and Benefits Manager
Chief Human Resources Officer
HR Administrator
Chief Legal Officer
Labor Relations Specialist
HR Coordinator
Personnel Manager
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