Table of Contents
At the time of resignation or termination, a notice is served by one party of the contract to make arrangements for the replacement. As per Saudi Labor Law, the duration of the notice period in case of resignation or termination depends upon the type of contract in KSA.
Payment in lieu of Notice Period
In case any party wants to terminate the contract without giving any notice period, they can do so by paying the full salary for this period as per Article 76 of Saudi Labor Law.
Notice period in a fixed-term contract
In order to resign or terminate a fixed-term contract, the employee or employer has to issue a notice period as mentioned in the contract or one month notice if it is not mentioned in the contract.
The contract with a Non-Saudi employee will always be a fixed-term contract under Saudi Labor Law.
Notice in an Indefinite contract
The resignation or termination of an Indefinite contract can be made with a 60 days notice as per Article 75 of Saudi Labor Law.
Termination under Article 77
An employer can terminate a worker without giving any notice under Article 77 of Saudi Labor Law unless stated otherwise in the contract. However, in case of termination under Article 77, the employer will have to compensate the employee heavily.
Minimum Notice period
- An employer can terminate a contract due to misconduct of the employee without any notice under Article 80 of Saudi Labor Law.
- An employee can resign due to misconduct of the employer without any notice under Article 81 of Saudi Labor Law.
- One day notice is required for termination or resignation during the probation period as per Article 53 of Saudi Labor Law.
The notice period mentioned above is the minimum period required by Saudi Labor Law in KSA. If a longer period is mentioned in the employment contract, both parties are obliged to follow it.