The Saudi Ministry of Human Resources and Social Development has verified that a worker must notify his employer of his desire to terminate the employment contract at least 60 days in advance if the contract is limitless and the worker is paid monthly. If a worker does not get his wage on a monthly basis, he must notify his employer of the termination of the contract within 30 days.
The same laws apply to employers if they wish to terminate the employment contract with the employee, according to the ministry, which specified three instances in which the worker or employer is entitled to compensation when ending the contractual connection between them.
- The ministry further stated that if a labor contract is terminated for a legitimate reason and one of the parties fails to comply with the notice period, material reimbursement equivalent to the worker’s income during the notice period must be provided to the affected party.
- If a contract is terminated for an unlawful reason that does not include a specific compensation, and the contract’s period is perpetual, a material compensation equal to 15 days’ salary shall be compensated for each year of service, provided the compensation is not less than two months’ salary.
- If a contract is terminated for an illegal reason without a specific compensation and the contract’s duration is limited, a material compensation equal to the worker’s wages for the rest of the period of the work contract must be paid, with the compensation not being less than two months’ salary.