7 cases of Employment Contract termination, Legal and Effective

7 Legal and effective cases that allows for Employment Contract termination in Saudi Arabia


There are seven cases that allows employment contract termination, including when the two parties agree to do so, provided that the employee’s consent is given in writing,  according to the Ministry of Human Resources and Social Development in Saudi Arabia. Follow Saudi Expatriates on Google News

According to the Ministry, the cases of employment contract termination includes the following

1. The end of the time frame stipulated in the contract.

2. If one of the parties (the Employer or the Employee) is engaged in an indefinite-term contract.

3. The employee approaches retirement age.

4. Force Majeure. Read : Notice period required for Employment contract termination

5. The facility’s complete shutdown.

6. Termination of the activity in which the worker works, unless otherwise agreed and

7. If both the employer and the employee agree to end the agreement and

* On any other case stipulated by another law.

End of Service for Terminated employee in Saudi Arabia :

– The employee has the right to request an end of service gratuity if their employment agreement expires, which refers to situations where the employer has the authority to do so.

– If the employee is asked to resign by the employer and the employee can prove it, this is regarded as a dismissal, and the employee is then entitled to an end-of-service bonus. See Also : Employment Contract Termination as per Saudi Labor Law

Notice period to End the Employment contract in Saudi Arabia :

– Earlier the ministry said, a work contract may be terminated due to a project end, with a written notice and the other party must be informed prior to the end of a specified period in the contract, not less than 60 days in the case of employees whose salaries are paid on a monthly basis and not less than 30 days for all other employees.

– The Ministry further stated that compensation is paid to the affected party if the notice time is not followed and to the disturbed party if the contract is terminated for an invalid reason.

– If the contract is for an indefinite period of time, either of its parties may terminate it for a reason that must be justified by a written notice given to the other party prior to the termination period stated in the contract, provided that it must not less than 60 days for the monthly salary worker and not less than 30 days for all other wage situations.

– If the party that terminated the indefinite contract fails to comply with the notice requirements, they are required to pay the other party for the notice period an amount equal to the worker’s salary for the same period, unless they mutually agree to pay more.

– If the signed agreement between the employer and employee specifies a notice time that is different from 60 days, then there will be importance to the notice period specified in the company contract. Most Viewed : 6 strict conditions of Final Exit Visa

– If the contract does not specify a notice time, then it will be a 60-days notice period, as per Saudi Labor Law.

– According to Article 78 of Saudi Labor Law, employees who are terminated for an improper basis may request reinstatement from the Labor Commission if they can prove the invalid reason of the employment contract termination.

– According to labor law’s Article 77, if either party ends an employment agreement without a good reason, the other party is required to pay the affected party a sum equal to 15 days of salary for each year of the indefinite contract. The remaining period pay or the equivalent of the employee’s two months’ salary in the case of a fixed-term contract. You May Like : Rights of the worker upon employment contract termination

Termination of a Worker during Probation Period in Saudi Arabia :

– Previously, the Ministry noted that unless the contract contains text granting the right to terminate one of them, each party has the right to end the agreement during the probation period.

– Neither side is entitled to remuneration if the contract is cancelled during the probationary period, and the employee is also not eligible for an end-of-service gratuity. Viewable Story : 6 fruits mentioned by name in Holy Quran

7 cases of Employment Contract termination, Legal and Effective - Saudi-Expatriates.com
7 cases of Employment Contract termination, Legal and Effective – Saudi-Expatriates.com

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