The End of Engagement Letter is a crucial document used in Saudi Arabia when concluding any employment relationship, whether through resignation, contract completion, or termination. It serves as an official record that complies with Saudi Labor Law and Shari'ah principles, documenting the final arrangements between employer and employee. This document should be used whenever an employment relationship is ending, as it provides clear documentation of the termination terms, final settlements, end-of-service benefits, and any continuing obligations. The letter helps ensure legal compliance, prevents future disputes, and protects both parties' interests under Saudi jurisdiction. It typically includes details about the final working day, settlement calculations, company property return, and ongoing confidentiality obligations.
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1. Letter Header and Date: Company letterhead, date, and reference number if applicable
2. Addressee Details: Employee's full name, position, and employee ID number
3. Subject Line: Clear indication that this is an End of Engagement Letter
4. Confirmation of Employment End: Statement confirming the termination of employment relationship and effective date
5. Reason for Termination: Brief statement of the reason for termination (e.g., resignation, end of contract, etc.)
6. Last Working Day: Clear statement of the employee's final working day
7. End of Service Benefits: Overview of end-of-service benefits and entitlements as per Saudi Labor Law
8. Company Property: List of company property to be returned and deadline for return
9. Final Settlement: Information about the final settlement process and timeline
10. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
11. Contact Information: Details for future correspondence and references
12. Acknowledgment: Space for both parties to sign and acknowledge the letter
1. Non-Compete Clause Reminder: Include when the employee's contract contains non-compete provisions that continue after employment
2. Handover Requirements: Include when the employee needs to transfer specific responsibilities or projects
3. Outstanding Loans/Advances: Include when there are any outstanding financial obligations to be settled
4. Visa/Residence Status: Include for expatriate employees regarding sponsorship transfer or cancellation
5. Reference Provision: Include when agreeing to provide future employment references
6. Grievance Procedure: Include when termination is due to disciplinary actions or when there might be potential disputes
7. Benefits Continuation: Include when certain benefits continue post-employment
1. Schedule A - Final Settlement Calculation: Detailed breakdown of final payment including salary, end of service benefits, and any other entitlements
2. Schedule B - Company Property Checklist: Itemized list of company property to be returned
3. Schedule C - Outstanding Obligations: List of any pending obligations, loans, or advances to be settled
4. Schedule D - Handover Checklist: Detailed list of documents, tasks, and responsibilities to be handed over
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