What are the rights of an employee upon termination of their contract in Saudi Arabia?
Introduction
The Saudi labor system is a modern system that guarantees the protection of the rights of both the worker and the employer. One of the most common questions among Saudis is: “ما حقوق العامل عند إنهاء عقد العمل؟”Whether the contract is for a fixed term or indefinite term, in this article we will explain all the legal rights of the worker with reference to the relevant legal articles.
1️⃣ Types of contract termination in Saudi Arabia
ينص Saudi Labor System states two main types of contract termination:
1.1 Termination of the contract by mutual consent
The employer and the employee may agree to terminate the contract at any time by mutual consent.
This should be documented in writing to avoid any future dispute.
End-of-service gratuity does not apply if there is a clear agreement that it is not due.
1.2 Unilateral Termination of Contract
It is divided into:
Termination by employer:
It is permissible to separate according Article 80 According to the labor law, if a worker commits serious violations such as repeated absence or breach of professional confidentiality, the employer is obligated to pay the worker's entitlements, including the remaining wage for the period he worked, and any compensation stipulated, unless the dismissal is in accordance with the cases specified in the law.
Employee resignation:
The employee has the right to terminate the contract with prior notice. Article 81 According to the labor law, the worker must give notice for 30 days if the contract is indefinite, and 15 days if the contract is fixed term, unless the parties agree otherwise.
2️⃣ Employee's rights upon termination of contract
The rights include the following:
End-of-service benefits (Gratuity):
according to Article 84 from the Saudi labor system:
An employee who has completed two years or more of service receives half a month's salary for each of the first five years. After five years, they receive a full month's salary for each subsequent year.
Wages due for unpaid days:
The daily wage includes compensation for accrued vacations, and any bonuses or incentives earned under the contract.
Prior notice or compensation:
If the required notice is not given, the affected party is entitled to claim compensation for the period.
Social security rights:
The employer must ensure that social security entitlements are transferred to the beneficiaries before terminating the contract, in accordance with the regulations of the General Organization for Social Insurance.
3️⃣ Special cases
Arbitrary dismissal:
according to Articles 81 and 80If the contract is terminated without legal cause or violation by the employee, the employee has the right to file a complaint with the relevant authority. Ministry of Human Resources and Social Development Or resorting to Workers' Committee To resolve the dispute.
Retirement or exemption:
It is subject to special laws that determine the entitlements according to the type of contract and the period of service.
4️⃣ Legal procedures in case of dispute
Submitting a formal complaint to the Ministry of Human Resources: via Ministry portal.
Submit all documents: the contract, attendance forms, any written notices.
Resorting to the Labor Disputes Settlement Committee to resolve the dispute.
If the two parties are not satisfied, the case can be taken to the Labor Court for a final ruling.
Conclusion
Knowing an employee's rights upon contract termination is essential to avoid any legal disputes. Saudi Labor System It protects the rights of both the employee and the employer, and establishes clear mechanisms for resolving disputes. Therefore, it is crucial to document any contract termination in writing and diligently pursue all legal entitlements.
✅ Legal sources
Articles 77, 80, 81, and 84 of the Saudi Labor Law