Sample Release for Receipt of All Dues in Saudi Arabia and Its Legal Conditions

A release for the receipt of all dues in Saudi Arabia is an essential legal step when ending the contractual relationship between the worker and the employer. It protects both parties from any future disputes and officially documents the conclusion of the financial rights.

In this guide, we explain what is meant by a release for the receipt of all dues in Saudi Arabia, what its legal conditions are, and when it is considered void, and we provide a sample release paper proving receipt of all of the worker’s dues approved in accordance with the labor regulations. We also explain how a lawyer can help prepare a valid release that protects all rights.

What Is a Release Under Saudi Labor Law?

A release form for the receipt of all dues in Saudi Arabia is a decisive document signed between the worker and the employer when the contractual relationship ends, and it is used to prove that the worker has received all of his statutory rights.

Under the Saudi Labor Law, a release is defined as a written agreement concluded between the worker and the employer after the contract expires or is terminated, which includes the worker’s acknowledgment of receiving all of his financial and statutory dues, such as wages, leave, the end-of-service award, and any other prescribed compensation. For a release to be valid, it must be signed by the worker in his own handwriting or officially notarized, and it must not include any waiver of rights that may not be waived under the Law.

Article Eight of the Saudi Labor Law (issued on 23/08/1426 AH and last amended on 17/09/1444 AH) confirmed that any condition or agreement that contravenes the provisions of the Law and weakens the worker’s rights is void, even if it was made by the worker’s own will. This means that any release that does not guarantee the worker’s rights secured by law is not legally binding.

When Is a Release for the Receipt of All Dues Used?

A release form for the receipt of all dues is used as a legal document proving that the worker has received all of his statutory dues from the employer, whether salaries, allowances, or bonuses. It is an important part of the release under the Saudi Labor Law, and it is recommended in several main cases:

• Upon expiry of the employment contract: whether upon expiry of its fixed term or after its renewal, a release is drawn up documenting receipt of end-of-service dues and the end-of-contract award in accordance with the Law.
• In cases of resignation or dismissal: when the worker leaves work voluntarily or is dismissed by the employer, a financial release must be prepared that states the amounts paid precisely, to avoid any future claim.
• In cases of sponsorship transfer or leaving the Kingdom: when the worker moves to another sponsor or leaves permanently, a legal release form is necessary to ensure that he receives all of his rights and to protect the employer from any subsequent obligation.
• When there is a dispute or complaint: in labor disputes, a release between the worker and the employer is resorted to after the disputes are settled, and the acknowledgment of receipt of salaries and end-of-contract dues is clearly documented.

A release is often drawn up in various forms, including a Word release form to make editing and saving easier, provided that the conditions for the validity of a release form are met, such as the signatures of both parties, a detailed statement of the amounts, and the date of payment.

However, one is cautioned against rushing to sign, as there are cases of the invalidity of a release under Saudi law, such as when it is signed under duress, when its wording is unclear, or when it includes the waiver of the worker’s rights without legitimate grounds. It is therefore advisable to have the release reviewed by a specialized lawyer to ensure its conformity with the regulations in force.

Do you know when you are entitled to:

• financial compensation for arbitrary dismissal in Saudi Arabia?
• compensation for the termination of a fixed-term employment contract in Saudi Arabia.

The Importance of the Financial Release for the Worker

A financial release for the worker plays a fundamental role in protecting the worker and confirming his rights when the contractual relationship ends, in accordance with Article 74 of the Saudi Labor Law. Its importance lies in several practical and legal aspects, most notably:

• Documenting receipt of dues: The release is considered legal evidence proving that the worker has received all of his statutory rights, which prevents any future dispute.
• Protection from forced waiver: The Law requires that the release be signed without duress, which ensures that the worker was not forced to waive any right guaranteed to him under the law.
• A basic condition for ending the contractual relationship peacefully: Establishments often require the release to be signed before the official termination of the employment contract and the disbursement of dues, which makes it an important administrative procedure.
• A guarantee for career transition: The release helps facilitate the worker’s move to a new job or the issuance of a final exit visa without outstanding financial claims.
• Legal authority before judicial bodies: If a later dispute arises, the release can serve as a reference for resolving it, provided that it conforms to the statutory conditions.

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Conditions for Writing a Letter of Receipt of Dues

For the release between the worker and the employer to be legally valid, certain important conditions must be met. The following are the most important conditions for writing a letter of the release for the receipt of all dues in Saudi Arabia form:

• The release must be drawn up after the end of the employment contract, because drawing it up before then is considered void under the provisions of the Saudi Labor Law.
• The release must be the last procedure connecting the two parties to the employment contract.
• The release must be drawn up in writing, according to a document between the two parties.
• The wording of the release must be clarified, and it must express its intended meaning as evidence that the worker has received all of his dues.
• The worker’s acknowledgment and signature on the release with his full consent, and his acknowledgment that he has received all of his dues from the employer.
• The release must be written in clear language understandable to both parties, leaving no room for multiple interpretations.
• All the details of the worker and the employer, the company’s details, and the personal details must be stated in the acknowledgment.
• The general terms of the contract must be clarified, and it must be stated that the employee is aware of the content of the acknowledgment.
• Among the conditions for the validity of the release is the employee’s confirmation that he accepts the conditions stated in the acknowledgment, so that the acknowledgment is binding and legal.

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Sample Release for the Receipt of All Dues in Saudi Arabia

A sample release for the receipt of all dues in Saudi Arabia and an acknowledgment of receipt of financial dues are among the most important elements of the employment relationship between the employee and the employer. Under it, the employee receives all of his financial dues in return for the services he provided to the employer, and it is a contract between the two parties to the employment relationship.

A sample acknowledgment of receipt of a worker’s dues is used as evidence of the employer’s discharge of liability in any legal dispute brought by the worker to claim financial dues.

Sample Acknowledgment of Receipt of a Worker’s Dues

We present below a sample release, an acknowledgment of receipt of dues, and an undertaking to receive all dues in full:

Day…… Date……

Subject: A sample release for the receipt of all Ministry of Labor dues for the worker.

I, the undersigned…… Nationality…… National ID number……, acknowledge

that I have received all of my financial dues and all that I am entitled to in incentives, allowances and expenses, in addition to the end-of-service award in accordance with the Saudi Labor Law, from the company…… headquartered in……, from the date I started work until the date I left it.

By signing this acknowledgment, I release…… from any financial dues owed to me by them, and I also undertake to cease any dispute before the competent authorities regarding the period of employment or anything related to my receipt of all of my dues.

I acknowledge signing this end-of-service dues receipt form without pressure and of my own will, and this is my undertaking to that effect.

Name……

Signature……

First witness…… Second witness……

Sample Release for the Receipt of Dues of Domestic Workers (Private Driver / Domestic Worker)

Can a Signed Release Be Retracted?

Although a release form for the receipt of all dues is a legal document proving receipt of end-of-service dues, the worker may in some cases be able to retract it and challenge its validity, especially if it is tainted by a defect in consent or ambiguity in wording.

The Saudi regulations permit the worker to challenge the financial release whenever one of the cases of invalidity of a release under Saudi law is present, the most important of which are:

• Duress or pressure: If it is proven that the worker signed the release under a threat of dismissal, deportation, or withholding of dues, it is considered void and is not given effect judicially.
• Ignorance or lack of awareness of rights: If the worker was not aware of his rights when the contract ended, or the release was signed in a language he does not understand, that may be interpreted against the employer, especially in the absence of translation or clarification.
• Unclear amount or details: The worker’s signing of a legal release form that does not itemize the financial components (salaries, allowances, award) weakens its force before the court.

In these cases, the role of the labor judiciary emerges in interpreting the document, as the judge is not satisfied with the mere signature of the worker on an acknowledgment of receipt of salaries or a release between the worker and the employer, but examines the circumstances surrounding it: Was it signed voluntarily? Does it contain all the details? Was it drafted in accordance with the conditions for the validity of a release form?

Several labor courts have ruled that a release is void because the worker was forced to sign without actual payment or because of ambiguity in the amounts, even though the external form of the document was sound.

Important Legal Tips Before Signing the Final Release

Signing a release form for the receipt of all dues is a legally sensitive procedure, because it conclusively proves receipt of end-of-service dues and can be invoked before judicial bodies. It is therefore recommended to follow the tips below, to ensure that no unintended waiver of the worker’s rights occurs when the contract ends:

• Review the details of the release carefully: Make sure that all of your dues are clearly stated: salaries, leave, bonuses, and the end-of-service allowance.
• Do not sign an incomplete or non-itemized release: The presence of ambiguity or generalization such as “the worker has received all his rights” without details can be challenged under the cases of invalidity of a release under Saudi law.
• Make sure the wording conforms to the conditions for the validity of a release form: It must contain the names of both parties, the dates, the details of the amounts, the signature of the worker and the employer, and the establishment’s stamp, if any.
• Avoid signing under pressure or duress: Any release signed under compulsion may be considered void, and the judiciary may later nullify its effect.
• Keep a signed copy of the release form: whether printed or in electronic form such as a Word release form, to preserve your rights in the future.
• Consult a specialized lawyer before signing if you are not confident: especially when there is a dispute or in the case of sudden dismissal, to ensure the soundness of the legal release wording and its compliance with the Saudi Labor Law.
• Verify that the release covers all financial items: including the acknowledgment of receipt of salaries and not only the end-of-contract award.

When Is a Release Void Under Saudi Law?

Although a sample release for the receipt of all dues in Saudi Arabia is used as evidence of the end of financial rights between the worker and the employer, the Law specifies cases in which this release is considered void and not legally recognized, the most prominent of which are:

• Duress or pressure on the worker: If it is proven that the worker was placed under any kind of threat or pressure to force him to sign, the release is void for lack of genuine consent.
• The release includes a waiver of rights that may not be waived: such as the end-of-service award, wages due, or compensation for the termination of an employment contract; waiving them contravenes Article 8 of the Labor Law and is considered null.
• Unclear details of the dues: If the release is general or vague without specifying the items of the rights received, it loses its legal force.
• The worker did not sign in his own handwriting, or there is no official notarization: For a release to be valid, it must be signed by the worker personally or electronically notarized through the approved authorities.
• Exploiting the worker’s cognitive or linguistic weakness: If it is proven that the worker was not aware of the content of the release because of language or ignorance of the Law, it can be invalidated before the court.

Are you looking for:

• A defense memorandum in a labor lawsuit for arbitrary dismissal.
• Everything you need to know about financial compensation for arbitrary dismissal in Saudi Arabia.

Sources:

• Saudi Labor Law.
• Ministry of Human Resources and Social Development.

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