A final settlement form records what an employee was paid when employment ended: every item of dues, every deduction, and the net amount received. The template above has two tabs: a final settlement that calculates the net amount and writes it in words, and a one-paragraph receipt of full settlement that works for a company employee, a domestic worker or a private driver.
Net settlement = total dues − total deductions. In the example shown: dues of SAR 33,350.00 and deductions of SAR 2,600.00 give a net of SAR 30,750.00. The employee signs only after receiving the amount written in the form.
How to use the final settlement form
- Type the employee's name, job title, company and last working day into the form.
- In the dues table, enter days and daily wage for the final month's wages and the leave balance, and enter the end-of-service award as a ready amount.
- Enter deductions the same way. The net amount appears in figures and words inside the employee's acknowledgement.
- Pay the amount, then print the settlement for the employee, HR and Finance to sign.
What a final settlement is and when it is signed
The settlement closes the financial side of employment: it lists what the employee earned for their service, what was deducted, and is signed when the net is received. The order at the end of service is: resignation accepted or contract ended, then clearance and return of company assets, then the dues calculated and paid, then the settlement signed. The employee clearance form has its own page.
| Item | How it is calculated in the example |
|---|---|
| Wages for days worked in the final month | 18 days × SAR 300 (monthly wage 9,000 ÷ 30) = SAR 5,400.00 |
| Pay for unused annual leave | 12 days × SAR 300 = SAR 3,600.00 |
| End-of-service award | SAR 22,500.00, calculated beforehand and entered as an amount |
| Other allowances | Air ticket allowance SAR 1,850.00 |
| Deductions | Salary advance balance SAR 2,000.00, and two days of unexcused absence SAR 600.00 |
| Net | 33,350.00 − 2,600.00 = SAR 30,750.00 |
The end-of-service award follows Articles 84 and 85 of the Labor Law according to length of service, last wage and how employment ended; in the example, five years at SAR 9,000 give SAR 22,500.00 if the rule of half a month's wage for each of the first five years applies. This page takes the award as a ready amount; the end-of-service calculator works it out.
Receipt of full settlement
The Full settlement receipt tab proves receipt of all dues in one paragraph: name and ID number, the amount received in figures and words, that it is the total of dues for the period of employment, and how it was paid, followed by the signatures of the recipient, the employer and a witness. Attach the detailed statement of dues: a receipt that says "I have received all my dues" with no amount or breakdown is weak in any dispute, and so is one whose amount does not match the transfer.
Final settlement for workers and domestic workers
A settlement for a housemaid, domestic worker or private driver is shorter than one for company staff. The usual items are the last month's wage, any wages in arrears, leave pay, the end-of-service award if due, and the return ticket. The second tab has two ready examples: a housemaid paid SAR 4,200.00 in cash and a private driver paid SAR 5,600.00 by bank transfer. The employer needs the nationality, Iqama number, payment method and a witness, plus proof of transfer if paid by bank, because a final settlement may be asked for at final exit or transfer of sponsorship.
Signing a settlement before receiving your dues
Do not sign the settlement before the amount written in it reaches you. The safe sequence for both sides: the money is paid first by transfer or cheque, the employee signs once it has arrived, a copy of the transfer is kept with the settlement, and each side keeps a copy. If you dispute an item, write your reservation in the "Employee reservation" box in Advanced mode before signing. For someone who signed and was not paid, the effect of the signature depends on the wording and on what was actually received; Article 8 of the Labor Law voids a waiver of rights made while the contract is in force, and the labor courts look at each case on its evidence. This is general information, not legal advice.
Final settlement form in PDF and Word
The settlement downloads first as a PDF to print and sign, and as Word if you want to add lines or change the wording. The blank form button gives you a settlement with empty tables to fill in by hand.
Common final settlement mistakes
- Writing "I have received all my dues" without an amount or a breakdown of items.
- Signing the settlement before the transfer arrives or the cheque clears.
- Deducting the value of an asset without a written agreement on that value.
- Calculating the daily wage on actual calendar days for one item and on 30 days for another.
- Holding back payment until clearance is finished, although Article 88 of the Labor Law sets a deadline for paying dues.
Regulatory notes
The end-of-service award is in Articles 84 and 85, pay for unused leave in Article 111, the deadline for paying dues after employment ends in Article 88, and the voiding of waivers during the contract in Article 8 of the Saudi Labor Law. The law has been amended in recent years, so check the current texts with the Ministry of Human Resources and Social Development. Domestic workers fall under the Domestic Workers Regulation rather than the full Labor Law.
When end-of-service settlements keep coming
Microtec's ERP accounting system includes an HR module that keeps employee details and transactions in one place instead of files scattered across departments.
Frequently asked questions
What is the difference between a final settlement and a clearance form?
The clearance form proves the employee returned their assets and work to each department. The final settlement proves the amounts paid after that: dues, deductions and the net. Clearance comes first.
Does a final settlement need witnesses?
The template does not require one, but a witness strengthens the settlement when payment is in cash or with a domestic worker. The witness box is in Advanced mode on the Full settlement receipt tab.
How much legal weight does a final settlement carry?
It proves receipt of the amount stated with the items listed. Anything not listed or not actually received is dealt with under the Labor Law, and a waiver of rights while the contract is in force is void under Article 8.
Should the amount be written in words and figures?
Yes. The template writes the net in words next to the figure, so no figure can be added or changed after signing without the difference showing.
Can I use this form for a domestic worker or private driver?
Yes. The Full settlement receipt tab has ready examples for both. Domestic workers are covered by the Domestic Workers Regulation, so check their dues there.