Notice of Non-Renewal of Contract Template
Notify employees professionally and compliantly of non-renewal using the Notice of Non-Renewal of Contract Template to document the process.
When?
2. July 2025
10:30 AM KSA Time Zone
Where?
Online
Zoom Conference
Non-renewal notice template features
- Ready to use and customizable: Ready-made templates for: Non-renewal at the end of the contract, non-renewal with transitional notice, and consensual non-renewal agreements.
- Compatible with the Saudi Labor Law: Drafted in line with modern contract renewal practices and Qawwa platform notices.
- Ensure operational discipline: Includes fields for final settlement, dues and benefits statements, return of company property, and release steps.
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Frequently Asked Questions
What is a Notice of Non-Renewal of Contract?
A formal document given to an employee before a fixed-term contract ends, informing them that the employer will not renew the contract. It clarifies contract expiry, post-contract procedures (e.g. settlement, handover), and documentation required before departure. The aim is documentation and clarity rather than explaining detailed reasons.
What’s the difference between “non-renewal” and “early termination”?
“Non-renewal” means the contract ends at its agreed time and is not extended—generally not considered a dismissal requiring additional compensation. “Early termination” is ending the contract before its end date and may require legal justification or compensation under the contract or law.
Is there a mandatory legal notice period in Saudi Arabia for non-renewal?
It depends on contract type (fixed vs. indefinite). For fixed-term contracts, many end automatically unless renewed. For indefinite or monthly contracts, notice periods such as 60 days are sometimes required. Always review contract terms and relevant labor regulations before issuing notice.
What elements should the notice contain?
The notice should include:
- Employee details
- Contract reference or number
- Contract expiration date
- Statement of non-renewal
- Last working day
- Instructions for returning company property
- Final settlement or entitlements
- Contact information for HR
Should the notice state the reason? Is it safe?
Not always. In many cases, non-renewal is administrative and does not require a reason. However, when non-renewal is related to performance or policy, a brief reference to supporting documentation may be useful. Be cautious: detailed explanations may be challenged or interpreted as defamatory—legal review is advisable.
How does non-renewal affect foreign employees (visa / sponsorship)?
Non-renewal triggers procedural implications: ending work visas, transferring sponsorship, or departure procedures. Systems such as national labor platforms may generate notices when contracts expire. Employers should coordinate with immigration/kafala authorities to avoid violations.
When should I notify the employee? Is there a “minimum” advance period?
Best practice is prior notice—30 to 60 days—in order to allow for operational planning. If the contract itself specifies a notice interval, follow that. Early notice reduces dispute risk and logistical friction.
Acceptable methods to deliver the notice?
Preferred method: in person with the employee’s signed acknowledgment. Alternatives: certified mail, documented email, e-signature with timestamp. Always document date/time and method of delivery.
What if the employee refuses to accept or sign the notice?
Record the refusal in writing, note reasons if given, include a witness (HR rep). Keep a copy of the notice and attach acknowledgment of refusal. In case of dispute, this record and witness statements support your position.
What are the administrative and financial consequences after the notice?
They may include: calculating end-of-service benefits, final salary, unused leave pay, performing handover steps, and returning company property. For foreign employees, include steps for visa termination or sponsorship transfer. Ensure calculations are based on attendance, payroll history, and contract terms.
Can notice pay be substituted instead of serving notice?
Yes, provided it's allowed by contract or local law. The employer may pay “in lieu of notice” rather than requiring the employee to work through the notice period. Document this agreement clearly.
How should HR record and archive notices in the HRIS?
Maintain a central record including signed copies, delivery method and date, communication logs, and follow-up actions. Use structured fields (notice type, reason, effective date, supervisor) to facilitate reports and audits.
What if the matter escalates to a legal dispute?
Preserve all related records: performance evaluations, prior warnings, communication. Seek legal counsel immediately. Good documentation, clear notice, and consistent process reduce exposure.