Resignation and end-of-service award in Saudi Arabia

Current resignation process

A resignation request is accepted when the employer accepts it or when 30 days pass without a response. The employer may postpone acceptance for up to 60 additional days for work needs, but must give a written explanation before the original 30 days expire.

The worker may withdraw the request within seven days unless the employer has already accepted it. The contract and both parties' duties remain active while the request is pending.

Notice for indefinite contracts

For a monthly-paid worker, employee-initiated termination requires at least 30 days' written notice; employer-initiated termination requires at least 60 days. If pay is not monthly, either terminating party gives at least 30 days.

Failure to observe the required period can create notice pay equal to the missed period. Fixed-term contracts have different consequences if ended before expiry, so read the termination clause.

Full award calculation

The full award is half a month's last wage for each of the first five years, then one month's last wage for each later year. Fractions of a year are calculated proportionally.

On ordinary resignation, Article 85 gives no award below two years, one-third from two to five years, two-thirds above five but below ten, and the full award from ten years. Article 87 contains special full-award cases.

Final settlement

When the employer ends service, wages and entitlements should be settled within one week. When the worker ends the contract, the maximum is two weeks. The statement should show wages, unused leave, award, notice pay and every lawful deduction.