SAUDI ARABIA

60-day notice required to terminate employment contract, says ministry

May 19, 2022

Okaz/Saudi Gazette

RIYADH — The Ministry of Human Resources and Social Development has clarified that an employee must notify the employer about his intention to terminate the work contract at least 60 days in advance if the period of the contract is unlimited and the employee receives the wage on a monthly basis.

“In the event the employee does not receive his wage monthly, it is required for him to notify the employer about the termination of the contract within a period of no less than 30 days. These rules will also apply to the employer if he terminates the contractual relationship with the worker,” the ministry said while clarifying the three situations under which the employee or the employer is entitled to compensation upon termination of the contractual relationship between the two parties.

The ministry stated that in the event of terminating the contract for a legitimate reason and one of the parties does not comply with the notice period, material compensation shall be paid to the affected party, equal to the wages of the worker during the notice period.

“In the event the contract is terminated for an unlawful reason and does not include a specific compensation and the duration of the contract is unlimited, a material compensation estimated at 15 days of wages shall be disbursed to the employee for each year of service, provided that the compensation is not less than two months of wages,” the ministry said.

The ministry indicated that in the event that the contract is terminated for an unlawful reason and does not include a specific compensation and the duration of the contract was limited, a material compensation estimated at the employee’s wages for the remaining period of the contract shall be paid, provided that the compensation shall not be less than two months of wages.


May 19, 2022
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