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Termination Letter Without Cause Template for Saudi Arabia

A formal employment termination letter compliant with Saudi Labor Law (Royal Decree No. M/51) that documents the termination of employment without cause. The document includes essential elements such as notice period, end-of-service benefits calculation, final settlement details, and handover requirements. It ensures compliance with Saudi Arabian employment regulations while maintaining professional communication standards and protecting both employer and employee rights. The letter serves as official documentation of the termination process and outlines all necessary steps and obligations for both parties during the transition period.

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What is a Termination Letter Without Cause?

This Termination Letter Without Cause is a crucial document used by employers in Saudi Arabia when ending an employment relationship without specific performance-related or disciplinary reasons. The document must strictly comply with Saudi Labor Law (Royal Decree No. M/51) requirements, including mandatory notice periods (minimum 30 days for monthly-paid employees), end-of-service benefits calculations, and final settlement procedures. It serves as official documentation of the termination decision and protects both employer and employee interests by clearly stating all terms, conditions, and obligations. The letter is particularly important in maintaining proper documentation for labor authority compliance and potential future reference.

What sections should be included in a Termination Letter Without Cause?

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee

2. Employee Details: Full name, employee ID, position, and department of the employee

3. Termination Statement: Clear statement of employment termination without cause, with reference to the employment contract

4. Notice Period: Specification of the notice period as per Saudi Labor Law (minimum 30 days for monthly-paid employees)

5. Last Working Day: Clear statement of the employee's final working day

6. End of Service Benefits: Statement regarding the calculation and payment of end-of-service benefits as per Saudi Labor Law

7. Company Property: Instructions regarding the return of company property and handling of confidential information

8. Final Settlement: Information about the final settlement process and timeline

9. Signature Block: Space for authorized signatory's name, title, and signature

What sections are optional to include in a Termination Letter Without Cause?

1. Garden Leave: Optional section to be included if the employee will be placed on garden leave during the notice period

2. Handover Instructions: Detailed handover requirements if the employee holds a critical position or handles sensitive information

3. Non-Competition Reminder: Include if the employee's contract contains non-compete clauses that remain effective after termination

4. Reference Provision: Optional section regarding the company's willingness to provide future employment references

5. Continuation of Benefits: Details of any benefits that will continue during the notice period or beyond, if applicable

What schedules should be included in a Termination Letter Without Cause?

1. Final Settlement Calculation: Detailed breakdown of end-of-service benefits, salary, and other financial entitlements

2. Company Property Checklist: List of company assets and properties to be returned

3. Handover Document Template: Standard template for documenting the handover of responsibilities and ongoing projects

4. Exit Clearance Form: Checklist of departmental clearances required before final settlement

Authors

Alex Denne

Advisor @ 蜜桃传媒AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Saudi Arabia

Document Type

Cost

Free to use

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