HR Ministry clarification on the termination of employment contracts in Saudi Arabia


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Saudi Arabia’s Ministry of Human Resources and Social Development has issued a fresh reminder for cases of contract termination. The following are examples of contract terminations, according to the ministry. Read More:Message from Saudi Moroor to Owners of Abandoned and Damaged Vehicles

Unless the contract has been expressly renewed in accordance with the terms of the labor legislation, the two parties may agree to terminate the contract, provided that the worker’s approval is in writing, or if the period indicated in the contract has elapsed.

The termination is based on the will of one of the parties in indefinite-duration contracts, or the worker has reached the retirement age as defined by the social security system, unless the two parties agree to continue working after this age, according to the labor ministry. Read More: How To Check Exit Re-Entry Visa Validity in 2022

If the contract is for a specified work and it ends with the completion of the agreed work, force majeure, permanent closure of the company, termination of the task in which the worker works, unless otherwise agreed upon, and any other scenario allowed for by another law,

If the contract is for an indefinite period, either party may terminate it for a legitimate reason, which must be explained in writing to the other party before the contract’s termination period, which must be no less than 60 days if the worker’s salary is paid monthly, and no less than 30 days for others. Read More: Saudi Arabia has announced the return of in-person education for students in primary and kindergarten grades.

If the party who canceled the indefinite contract fails to see the notice time stated, the other party is compelled to pay the other party an amount equal to the worker’s salary for the same period, unless the two parties agree on more.

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