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Tuesday, 9 September 2014

Transfer of Sponsorship and ESB - End of Service Benefits

My company is not paying me End of Service Benefits after termination claiming that it will be paid at the time of transfer of sponsorship, is it legal?




Question by Visitor
I really appreciate your outstanding effort by providing legal advice to foreigners. I would like to ask your expert opinion in my case. My wife was working for the university as English language instructor and she was hired by the private company to work in university. As the university didn’t extend the contract with the company, company also terminated contract with the employees by providing the termination letter. Kindly provide me advice in following mistakes which I have done. End of service benefits summary was provided to me and I was told until my wife will not sign the declaration that she has got everything in cash and nothing is due against company, end of service benefits will not be transferred to her corporate bank account which she is maintaining with company and the said this declaration they will send to Riyadh and finance department will transfer the dues but since 2 months we are waiting no money. They asked the insurance card to return which I did to settle salary issues but now asking nakal kafla to return her to my kafala which also require 4000 riyal to be paid by me also.  She was before my dependent and company requested me to transfer her to their name, now they are saying that company will not pay until I will do nakal kafala. It is 6 months left till expiry of iqama. Plz tell what I should do now can I challenge them, do I go for nakal kafala and pay 4000 or tell them to clear my dues before nakal kafala or what?



Answer by Steve
  1. First of all, you have made a blunder by giving him that letter in writing that you have received all the End of Service Benefits in cash. In other words, you have already cut your hands. Now you cannot challenge them even if they don’t pay you End of Service Benefits.
  2. Secondly, it is general practice in Saudi Arabia that End of Service Benefits are paid at the time when transfer of sponsorship is started. At the time when you will be taking her transfer, they will pay you End of Service Benefits.
  3. I have already published an article regarding the responsibility of the Iqama Transfer Fee. You can read this in this article. “Responsibility of the Iqama Transfer Fee”. According to this, you are responsible to bear the burden of the Iqama transfer fee as per Saudi Labor Law.




Related Articles
  1. End of Service Benefits (ESB) Calculation
  2. Transferring Sponsorship in Saudi Arabia
  3. Responsibility of Iqama Transfer Fee
  4. Iqama Transfer without Consent of Kafeel
  5. Transferring Sponsorship if Kafeel is in Red Nitaqat Category
  6. Rights of Expatriates in Saudi Arabia
  7. Vacations under Saudi Labor Law
  8. Working Hours and Overtime in Saudi Arabia
  9. 40 or 48 Working Hours for Expats
  10. Legality of Initial Contract and Extension of Contract

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