The End of Service Benefits are the right of a worker on the employer irrespective of the type of employment contract. It could be fixed-term or in indefinite but it is obligatory on the employer to pay the End of Service Benefits to his employee at the end of the employment contract.
As we know that most of the businesses in Saudi Arabia are not able to make payments to suppliers, contractors and employees on a timely basis, employees are worried if they would be able to receive the end of service benefits for which they are entitled.
There are many expatriate employees who have no threat to their jobs but these expat workers are preferring to resign their just to receive a handsome amount in the form of the End of Service Benefits to safeguard their earnings over the years.
The calculation of End of Service Benefits as per Saudi Labor Law differs based upon two scenarios i.e. resignation and termination. Employees who complete their contract term or terminated by employer get a higher amount of end of service benefits and vice versa.
The vast majority of workers are heavily relying on End of Service Benefits after leaving their job and returning back to their home. They are also considering the option of quitting because of uncertain financial future.
The companies at construction sector are defaulting payment of End of Service Benefits and other benefits which caused the worker to authorize their diplomatic mission to collect the amount and remit to them after they quit and left for their home.
The Expat workers who have quit their job and left the Kingdom are inquiring about the status of their End of Service Benefits with their diplomatic mission while other workers who have resigned from their job but still living in the Kingdom waiting to receive their End of Service Benefits.
There are several expat workers who are still working in the Kingdom waiting for an amicable final exit from the Kingdom with their End Service Benefits.
Some sources said that many expatriate employees who resigned from their job in a hope to claim their End of Service Benefits were declined by the employers because of funds shortage.
An Indian Expatriate Employee said that he has seen the revenues shrinking and claimed that the situation can be grim ahead so he wanted to resign while still being able to claim End of Service Benefits.
Some Asian diplomatic mission has been flooded with the requests of intervention in claiming End of Service Benefits. Some of them have hired their local law firms to secure pending arrears on behalf of their nationals.
What should you do at this moment? The answer depends upon many factors and the most important is the financial condition of your company. In many companies, they have been paying salaries on time but not End of Service Benefits to departing employees.
In this kind of situation, you would lose even your monthly salary if you opt to resign. I think one should consider all the factors before making any move.
Source: Saudi Gazette