Termination & Notice Period in Saudi Arabia

Saudi Arabia's termination rules differ from other Gulf states, especially in how they handle fixed-term vs. indefinite contracts and the Article 80 grounds for summary dismissal:

• Fixed-term contracts: End automatically on the expiry date. Early termination by the employer without cause requires compensation equal to the remaining contract period or at least 2 months' wages, whichever is greater.
• Indefinite contracts: Either party may terminate with written notice. The notice period is 60 days if paid monthly, or 30 days otherwise.
• Pay in lieu of notice: The party that does not give proper notice must pay the other's wages for the notice period.
• Summary dismissal (Article 80): An employer can dismiss without notice or ESA for reasons listed in the law — assault on the employer, fraud, deliberate damage, repeated violations after three written warnings, or absence for more than 30 non-consecutive days in one year.
• Worker's right to quit (Article 81): You can resign without notice if the employer fails to meet contract obligations, commits fraud about working conditions, endangers your safety, or assaults you.
• Qiwa platform: All contract terminations are now recorded on the Qiwa platform — if your termination is not reflected on Qiwa, it may affect your ability to transfer to a new employer.

Dispute pathway — MHRSD Amicable Settlement → Labour Court (Najiz): A Saudi unfair-dismissal claim does not go directly to court. The sequence is:

1. Stage 1 — MHRSD Amicable Settlement (required): file the claim via the MHRSD portal or by calling 19911. MHRSD schedules mediation within 21 days. Most wage and notice disputes settle here, and an agreed settlement is directly enforceable via Najiz.
2. Stage 2 — Labour Court via Najiz: if amicable settlement fails, MHRSD refers the matter to the Labour Court through Najiz (najiz.sa). The Labour Court hears the dispute on its merits, applies Articles 74-82, and can order reinstatement, compensation (capped at 2 months' wages per year of service for indefinite contracts, not less than 2 months), ESA, and notice-period pay.
3. Stage 3 — Appellate Labour Court: either party may appeal within 30 days. First-tier judgments are stayed during appeal unless the worker is indigent and the court orders execution.

12-month limitation (Article 222): a Labour Court claim must be filed within 12 months of the last working day. Time spent in MHRSD amicable settlement does count toward this limitation, so move quickly through Stage 1.

Arbitrary dismissal compensation (Article 77): where the court finds the employer terminated without cause, it awards 15 days' wage per year of service for indefinite contracts (minimum 2 months) on top of ESA and notice. For fixed-term contracts the worker receives the wages remaining until the contract end date.