Understanding the nuances of resignation under the Saudi Labor Law is crucial for both employers and employees to navigate the process smoothly and ensure that rights and obligations are met on both sides. This guide provides a structured overview of the key aspects of resignation as per the Saudi Labor Law, including notice periods, end-of-service benefits, and the legalities of contract termination.
Overview of Resignation under Saudi Labor Law
Navigating the resignation process within the framework of the Saudi Labor Law is essential for maintaining a harmonious workplace and ensuring the protection of rights for both employers and employees. This section delves into the critical aspects of resignation, including notice period requirements, entitlement to end-of-service benefits (ESB), and valid reasons for resignation, providing a clear understanding to avoid any legal complications.
Notice Period Requirements
The Saudi Labor Law outlines specific notice period requirements to ensure a smooth transition for both parties involved in the resignation process.
- Open-ended Contracts:
- Article 75 mandates a notice period of 60 days for employees under open-ended contracts.
- Fixed-term Contracts:
- The notice period for fixed-term contracts may vary and must be explicitly specified within the contract.
Understanding and adhering to these notice periods is crucial for both parties to plan and adjust accordingly.
End-of-Service Benefits (ESB)
One of the key features of the Saudi Labor Law is the provision of end-of-service benefits, which acts as a financial safeguard for employees transitioning out of their roles.
- Entitlement: Employees are entitled to ESB upon the completion of their service.
- Calculation: ESB is calculated based on the duration of service and the last salary received, ensuring fair compensation for the employee’s contribution to the company.
Valid Reasons for Resignation
The Saudi Labor Law recognizes specific scenarios as valid reasons for an employee to resign, ensuring that employees can leave positions where the terms of employment are not met.
- Significant Changes to Employment Terms: Employees can resign if there are substantial and unfavorable changes to their employment terms.
- Failure by the Employer to Adhere to Contract Conditions: If an employer does not fulfill their contractual obligations, it constitutes a valid reason for resignation.
Key Legal Articles and Their Implications in Saudi Labor Law
Understanding the Saudi Labor Law is crucial for both employers and employees, especially when it comes to the resignation process. Certain articles within this law provide clear guidelines and protections for employees wishing to resign, as well as outline the obligations of employers during this process. Below, we delve into three pivotal articles: 84, 85, and 87, exploring their descriptions and implications for the workplace.
Article 84: Immediate Resignation in Special Circumstances
- Description: This article addresses the conditions under which an employee can resign without providing the standard notice.
- Implications: It empowers employees to leave their positions immediately under specific circumstances without the fear of legal repercussions. These circumstances typically involve significant breaches of contract or workplace conditions by the employer.
Article 85: End-of-Service Benefits
- Description: Article 85 specifies the rights of employees to receive end-of-service benefits upon their resignation.
- Implications: This ensures that employees are financially compensated at the end of their service. The compensation is calculated based on the duration of their employment and their last received salary, providing a financial safety net for employees as they transition out of their roles.
Article 87: Formal Resignation Process
- Description: This article outlines the legal procedures required for resigning properly.
- Implications: It mandates that resignations must be submitted in writing, thereby formalizing the process. This requirement protects both the employee and the employer by ensuring that there is a clear record of the resignation, including the notice period being served as per the contract terms.
Practical Advice for Navigating Resignation
Navigating the resignation process can be a daunting task for many employees. Understanding your rights and responsibilities is crucial to ensure a smooth transition. Here are some practical tips for employees considering resignation under the Saudi Labor Law.
For Employees:
Submit in Writing
- Importance: Submitting your resignation in writing is not just a formal requirement; it’s a crucial step that provides a clear record of your intention to resign and the date it was communicated.
- Action: Ensure your resignation letter is clear and concise. State your intention to resign and include your last working day, adhering to the notice period required under your contract or the Saudi Labor Law.
Understand Your Rights
- Importance: Being aware of your rights, especially regarding end-of-service benefits, is essential. These benefits are a significant part of your entitlements and can provide financial support during your transition.
- Action: Review the Saudi Labor Law or consult with a legal advisor to understand how your end-of-service benefits are calculated. This calculation typically considers the duration of your service and your last salary. Knowing this can help you plan your next steps more effectively.
Practical Advice for Employers on Handling Resignations
For employers, managing the resignation process with professionalism and adherence to the Saudi Labor Law not only protects the rights of employees but also maintains a positive workplace environment. Here are essential practices for employers during the resignation process.
For Employers:
Acknowledge Receipt
- Importance: Prompt acknowledgment of a resignation letter is a critical first step in the resignation process. It demonstrates respect for the employee’s decision and begins the transition process on a positive note.
- Action: Upon receiving a resignation letter, formally acknowledge it in writing. Confirm the notice period as stated by the employee, ensuring it aligns with the contractual obligations or the provisions of the Saudi Labor Law.
Calculate ESB Accurately
- Importance: The end-of-service benefits (ESB) are a significant entitlement for resigning employees, reflecting their contribution to the company. Accurate calculation and timely payment of these benefits are not only legal requirements but also reflect the company’s integrity.
- Action: Ensure that the ESB calculation is precise, based on the employee’s duration of service and their last received salary. Utilize the guidelines provided by the Saudi Labor Law to avoid any discrepancies. Process the payment promptly to facilitate a smooth transition for the departing employee.
23 Responses
TwoDiKub
Good morning sir,
I need your advice
Hello this is shoaib Ashraf and I am working in bindawood company , so at the time of interview and when they finalise the contract and offered me the position of physical Receiver but gave me a visa of packaging worker , second now I am working as physical Receiver but they got signature of me on the contract of packaging worker also, now they are forcibly transfer me into chees section but the main problem is that they didn’t interview me about chees section or disclose anything at the time of interview
So on the other hand am a master decree holder and related to services not relates to sale and I don’t know arabic so kindly convey me the remedy which I can avail in this situation.
Thanks
shoaib ashraf
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Assalamu alaykum.. I want to ask few questions regarding resignation rules.
My name is Norjana, i resigned on my respective campany And I went through the right process. I finish my contact and I give the 2 months advance notice period also. But then right after my last day they told me that they will file me for final exit if I didn’t finish 5 years on the campany because as per them it’s company rules that you should finish 5 years before you being locally released. I have an fixed term type of contract and it’s not 5 years. Please advise me. Thankyou.
DEAR SIR/MAM,
GREETINGS!
I need your advise regarding my resignation from my company. i give them 2 months’ notice period, but when my notice period completed. I stopped work and clear my clearance but unfortunately, they rejected my resignation, and they want me to continue my because I have still remaining contract with them. But if I will be going for my resignation, I will pay the remaining months of my contract. Is this in a Saudi labor law that if I will not finished my contract, I will pay the remaining month of my contract. But I follow the procedure of resignation.
1. Submitted my notice resignation letter.
2. Submitted resignation form from company with signatures without objection.
3. Clearance Submitted.
4. I terminate also my contract in QIWA platform.
please share me your advise thank you.
ouypEtiCb
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If any employee resign due to his / her personal reasons prior to 3 month before end of second contract period. Can employers demand 2 months salary from employee. Is it allowed in Saudi labor law.
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I am an expat with fixed term contract, I resigned and not finishing the contract, my employer ask me to pay the remaining contract month. Is this legal from labor law point of view?
Hello Sir Good afternoon id like to ask. i ask for a resignation from my current employer i have finish my first contract with them and just renewed recently a new contract how ever i just also find a new job and i have send a resignation notice on the company system but they rejected it, then i go straigth ahead in the office to inquire something why they reject my application and one of the employee there said that in the new amendment i cannot do transfer as of now because my contract just renew unless i will pay the 2 months notice and iqama renewal and the remaining exesting month from the new contract which is 22 months remaining with the amount of my basic salary . Is that true sir that im paying that kind of certain amount before granting my transfer demand? thank you for the responce.
Hello Sir Good afternoon im Michael Tenorio id like to ask i ask for a resignation from my current employer i have finish my first contract with them and just renewed recently a new contract how ever i just also find a new job and i have send a resignation notice on the company system but they rejected it, then i go straigth ahead in the office to inquire something why they reject my application and one of the employee there said that in the new amendment i cannot do transfer as of now because my contract just renew unless i will pay the 2 months notice and iqama renewal and the remaining exesting month from the new contract which is 22 months remaining with the amount of my basic salary . Is that true sir that im paying that kind of certain amount before granting my transfer demand?
hello Michael , reply on my email. yours & mine situation are the same.
Hi
Completed 1 year in my current company. New contract has renewed and expired on April 2025.
Can I terminate the contract now and is it possible to join other company
my name is alam khan
my phone number 0510958049
My job majra
Address hafar al batin
my passport number V3621770
my Kafil name Abufaad
my kafil contact number 0562627287
I came here to Saudi on 4.6.2024
I have been for 5 months and 16 days
Out of which I have been given 2 months salary and 2 months and 16 days salary is left.
When I came to the airport he took my passport
After that he fights with me every day and has beaten me 5 times
I want to go to the final exit
Please help me