Wednesday, September 17, 2014

Time Period to Payoff End of Service Benefits

End of Service Benefits are paid to the employees on the basis of their term of service with the employer. There is a complex formula regarding calculation of End of Service Benefits and we have covered it in this article “Calculation of End of Service Benefits”. End of Service Benefits are paid to the employees at the time when relationship with the employer and employee is finished. Now there can be two circumstances.

Legal Clauses
  1. If employer terminated employee from the job, employer shall pay his wages and settle his entitlements within a maximum period of one week from the date of the end of the contractual relation.
  2. If the employee resigned from the job, the employer shall settle all his entitlements within a period not exceeding two weeks. 

General Practice
If you talk about general practice in Saudi Arabia, there can be again two circumstances. General practice varies according to the circumstances.

If employer is releasing employee to another employer, generally end of service benefits should be paid to the employer when he has brought the demand letter from other Kafeel and current Kafeel is handing over release paper to him. However, in case if employer is processing final exit visa. It should be made available to the employer at least some days before his departure to the home country.

Labor Court
If the employer reluctant to pay within the stipulated time period, you can approach the concerned labour office in your area. The procedure to go to labor court has been explained in this article. “Register a Case against Kafeel in MOL

Related Articles
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  2. Vacations under Saudi Labor Law
  3. Working Hours and Overtime in Saudi Arabia
  4. 40 or 48 Working Hours for Expats
  5. Legality of Initial Contract and Extension of Contract
  6. Legality of Arabic / English Employment Contract
  7. Domestic Workers Laws in Saudi Arabi
  8. Guidebook for Expatriates by Ministry of Labor
  9. Is Saturday a Holiday for all Expats?
  10. Retirement Age in Saudi Arabia


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