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Mutual termination of employment agreement (Word & PDF)
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For an employer and a worker who agree in writing to end the employment relationship in the GCC. It records the last working day and points to the final settlement for sums and release.
Sources: 2 official sourcesNot legal advice
What this template includes
Written consent, then settlement after the end
A mutual termination in Arabic and English between a worker and an employer in Saudi Arabia, the UAE, Qatar, Bahrain, Oman and Kuwait. It ends the relationship by agreement, not a resignation letter from the worker alone, which is the resignation letter, and not the employment contract itself, which is the employment contract. After signing, record sums and release in the final settlement and release. For notice period, unlawful dismissal, end-of-service gratuity and service certificate. This is a starting point. Have it reviewed by a lawyer licensed in the relevant jurisdiction before you use it.
What the mutual termination records
The contract being ended, the last working day, termination by mutual consent, return of property, surviving confidentiality, and a pointer to a final settlement for sums and release. In Saudi Arabia the contract ends if both parties agree, provided the worker’s consent is in writing.[1] Any release during the contract is void unless it is more beneficial to the worker.[1] Rights are settled within the deadline in Article 88.[1] In the UAE the contract ends if the parties agree in writing (Article 42 (1)).[2]
- Do not sign a broad release during employment in Saudi Arabia if it is less beneficial to the worker.[1]
- Fixed-term or indefinite: state the term in clause (1). See fixed-term employment contract in the glossary.
- Qatar, Bahrain, Kuwait and Oman: under review. No article number or payment deadline on this page.
The template
Mutual termination of employment
Between a worker and an employer in the GCC. Replace every [bracketed phrase]. This is a starting point. Have it reviewed by a lawyer licensed in the relevant jurisdiction before you use it.
Made on [date] between [employer] (the “Employer”) and [worker], ID [●] (the “Worker”). The contract being ended: employment contract dated [●] [fixed term until [●] / indefinite term].
The parties agree to end the employment relationship by mutual consent from [last working day]. The Worker’s consent to this termination is recorded in writing in this agreement.
The Worker returns [equipment / cards / documents] before the last working day and signs a handover record.
Wage through the last working day, leave pay and end-of-service award are calculated under the law in force. The final settlement and release is signed on [date] after the last working day. This clause is not a final release by itself.
Drafting note
In Saudi Arabia rights are settled within one week or two weeks under Article 88.[1]
The Worker receives a service certificate under the law. See service certificate and end-of-service gratuity.
Confidentiality and [non-compete if stated in the contract] survive after termination within the limits of the law.
Signed: Employer [●], Worker [●].
Saudi Arabia notes
| Topic | Text |
|---|---|
| Agreement | The contract ends if both parties agree, provided the worker’s consent is in writing (Article 74 (1)).[1] |
| Release during contract | Any release or settlement of the worker’s rights while the contract is in force is void unless it is more beneficial to the worker (Article 8).[1] |
| Settlement time | Rights are settled within one week at most, and within two weeks if the worker ended the contract (Article 88).[1] |
United Arab Emirates notes
| Topic | Text |
|---|---|
| Agreement | The contract ends if the parties agree in writing (Article 42 (1)).[2] |
Qatar, Bahrain, Kuwait and Oman
- Qatar: under review. No article number or payment deadline on this page.
- Bahrain: under review. No article number.
- Kuwait: under review. No article number.
- Oman: under review. No article number.