Wednesday, 2 July 2014

Notice Period under Saudi Labor Law

  1. If the contract is of a fixed term, it cannot be terminated within the term unless both parties agree to do so. If employer wants to terminate an employee of fixed term contract, he will have to pay him for salaries of all the remaining period and same goes with the employee. The payment in this case cannot be less than 2 months salary. (Section 77, Saudi Labor Law)
  • If the contract is indefinite contract, 60 days notice period by either of the party will be considered appropriate unless some other period is specified in the contract. 60 days notice period applies only if the employee is receiving remuneration on monthly basis. If employee is receiving remuneration on any other basis, 30 days’ notice period will be considered enough. Source: Article 75 of Saudi Labor Law (01/01/1437 changes in SLL are taken into account)

  • If employer wants to terminate and indefinite contract without giving notice period, he will have to pay him remuneration equivalent to the notice period specified above. Source: Article 76 of Saudi Labor Law

  • If employee is receiving remuneration on piecemeal basis, his average pay received in last three months will be considered for the payment.
  • There is no need to give any notice period by employer for the termination from the side of employee or employer if employee is on probation. However, it is better for employees to give one day notice if he wants to resign.
  • The notice period mentioned above is the minimum period, if contract requires a longer period, parties of the contract are obliged to follow it.
  • In some cases which are explained in detail in this link, employee can resign without any notice period. "Resignation without Notice Period"

  • Resignation /Termination under Saudi Labor Law


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