Termination & Notice Period
Written in plain language for general understanding. This is educational content, not legal advice. Based on Saudi royal decrees, regulations, and ministerial decisions.
Saudi National Law
What is this right?
The Labour Law sets rules for how employment can be ended and what notice is required:
- 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 the employee is paid monthly, or 30 days otherwise.
- Pay in lieu of notice: The party that does not give proper notice must pay the other party's wages for the notice period.
- Termination for cause (Article 80): An employer can dismiss a worker without notice or ESA for serious misconduct — but only for reasons listed in the law (assault, fraud, repeated violations after written warnings, etc.).
- Worker resignation for cause (Article 81): You can resign without notice if the employer fails to meet contract obligations, commits fraud, or creates dangerous work conditions.
When does it apply?
- You are being terminated, laid off, or not renewed by your employer.
- You want to resign from your job.
- Your fixed-term contract is ending or being cancelled early.
What should you do?
- Get everything in writing — request a written termination letter stating the reason and effective date.
- Verify your entitlements — ESA, unused leave pay, and any compensation for early termination.
- If you believe the termination is unfair or arbitrary, file a claim with the Labour Courts within 12 months.
- If resigning, give written notice per your contract terms.
What should you NOT do?
- Do not accept verbal termination — insist on a written notice with the reason stated.
- Do not sign a settlement or clearance form before confirming all payments are correct.
- Do not assume Article 80 applies automatically — employers must prove the misconduct fits one of the specific grounds listed in the law.
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