Part One: Termination of Service
The process of termination of service is crucial in Saudi labor law, organized to ensure the rights of both parties, the worker and the employer. Contracts can be terminated by either party according to specific conditions, and a notice period of at least thirty days must be given if the contract is of indefinite duration.
A worker has the right to terminate the contract without notice if the employer breaches the contract terms or if the worker is subjected to maltreatment. Conversely, an employer can terminate the contract without notice if the worker commits serious violations such as forgery or repeated absenteeism without valid excuse.
Part Two: End-of-Service Benefits
Saudi laws stipulate the worker’s right to receive end-of-service benefits upon the termination of the employment relationship. The benefits are calculated based on the worker’s last salary, at the rate of half a month for each of the first five years, and a full month for each subsequent year.
If the contract is terminated due to the worker’s resignation, the worker is entitled to one-third of the benefits if the service period is between two and five years, two-thirds if the service period exceeds five years but is less than ten years, and the full benefits if the service period is ten years or more.
If the contract termination is due to force majeure circumstances beyond the worker’s control, or due to the worker’s marriage or childbirth, the worker is entitled to full benefits regardless of the service period.
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