Wednesday, July 2, 2014

What is the Notice Period under Saudi Labor Law?

A notice is served to the other party of the contract so that the other party can make its arrangement to look for another job or to look for a replacement of an employee during this time. Saudi Labor Law governs the notice period and the duration of notice period depends on the type of contract an employee is having.

  • Notice Period in Fixed Term Contract: A Fixed term contract is terminated at the end of the term of the contract under Article 74 of Saudi Labor Law. If your employer wants to terminate you at the end of the contract, he just has to give you notice as mentioned in the contract or one month notice if it is not mentioned in the contract. Similarly, you also can leave your employer until the end of the contract by giving same notice period.
  • Notice Period in Indefinite Term Contract: In the case of an indefinite contract, either party can terminate it subject to Article 75 of Saudi Labor Law. Article 75 states that an indefinite contract can be terminated by either party based upon a valid reason after giving 60 days’ notice period.
  • Notice Period for Termination under Article 77:  If an employer wants to terminate an employee without any reason under Article 77 of Saudi Labor Law, he does not need to give him any notice unless the notice period is specifically given in the contract signed between two parties. If it is explicitly written in the contract that the employer will have to give notice to the employee even in the case of termination without reason, only in that case employer is liable to serve the notice. Recommended: Article 77 of Saudi Labor Law
  • Pay in lieu of Notice Period: If employer wants to terminate a contract without giving notice period, he will have to pay the employee remuneration equivalent to the notice period specified above - Article 76 of Saudi Labor Law
  • Notice period during probation period: In order to terminate a contract within the probation period, only one day notice is required by Saudi Labor Law by either party – Article 53 of Saudi Labor Law. Recommended: Probation Rules under Saudi Labor Law
  • Termination without Notice Period: An employment contract can always be terminated by the employer under Article 80 of Saudi Labor Law without giving any notice. Recommended: Termination without Notice Period under Article 80 of Saudi Labor Law
  • Resignation without Notice Period: An employee can always resign from a job without giving any notice under Article 81 of Saudi Labor Law. Recommended: Resignation without Notice Period under Article 81 of Saudi Labor Law
  • 60 days’ notice period applies only if the employee is receiving remuneration on monthly basis.
  • If an employee is receiving remuneration on any other basis, 30 days’ notice period will be considered enough
  • If an employee is receiving remuneration on a piecemeal basis, his average pay received in last three months will be considered for the payment.
  • The notice period mentioned above is the minimum period required by Saudi Labor Law, if the contract requires a longer period, parties of the contract are obliged to follow it.

Resignation /Termination under Saudi Labor Law
  1. End of Service Benefits (ESB) Calculation
  2. Retirement Age in Saudi Arabia
  3. 4 kinds of Death Compensations of Workers in Saudi Arabia
  4. Can employer deduct Iqama Renewal Fee and Insurance cost at the time of Resignation?
  5. Can I request Transfer of Sponsorship within Probation Period?


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