Saudi Arabia has introduced important changes to the way employment contracts can end, especially when an employee wants to resign. The rules explain how resignation requests are handled, how long an employer can take to respond, and what happens during the resignation period.
The Saudi new labor law rules for contract cancellation and resignation are important for both Saudi and expatriate workers. Understanding these rules can help employees avoid confusion about their last working day, notice period, final salary, and other employment rights.This guide explains the Saudi new labor law rules for contract cancellation and resignation in simple words, so workers can understand the process before making a decision.
Table of Contents
- What Are the New Saudi Labor Law Rules?
- How Can an Employment Contract End?
- New Resignation Rules in Saudi Arabia
- What Happens After Submitting a Resignation?
- Notice Period for Contract Cancellation
- Fixed-Term and Indefinite-Term Contracts
- How to Terminate a Contract Through Qiwa
- End-of-Service Benefits After Resignation
- What Workers Should Check Before Resigning
- Frequently Asked Questions
- Final Summary
Saudi New Labor Law Rules for Contract Cancellation and Resignation
Saudi labor regulations provide several ways for an employment relationship to end. A contract may end through mutual agreement, expiry of a fixed-term contract, termination of an indefinite-term contract under the applicable rules, resignation, retirement, force majeure, or other situations covered by the law.
The resignation rules are particularly useful because they give employees and employers a clearer process. A resignation request is not simply treated as an immediate departure; there are specific time periods that apply after the request is submitted.
Understanding the Saudi new labor law rules for contract cancellation and resignation can help employees know what to expect before ending their employment.
How Can an Employment Contract End?
Common ways an employment contract can end
The exact process depends on the type of contract and the reason for ending the employment relationship.
| Situation | General Rule |
|---|---|
| Mutual agreement | Employer and employee agree to end the contract |
| Fixed-term contract | Contract normally ends when the agreed period expires |
| Indefinite-term contract | Can be ended according to the applicable notice rules |
| Resignation | Employee submits a resignation request |
| Retirement | Contract may end according to applicable retirement provisions |
| Force majeure | Recognized as one of the circumstances for ending employment |
| Other legal situations | Other cases may apply under Saudi regulations |
For workers, it is important to check the actual employment contract before taking action. The contract type, salary arrangement, notice period, and agreed conditions can affect the process.
New Resignation Rules in Saudi Arabia
What happens after submitting resignation?
One of the important changes concerns the time allowed for an employer to respond to a resignation request.
If the employer does not respond within 30 days from the date the resignation was submitted, the resignation is considered accepted.
In certain circumstances, the employer can postpone acceptance for up to 60 days if the interests of the work require it. The employer must provide a written explanation to the employee, and the postponement must be made before the original 30-day period ends.
Can an employee withdraw a resignation?
Yes. An employee can withdraw the resignation request within 7 days from the date it was submitted, unless the employer accepts the resignation before the employee withdraws it.
This gives employees a short period to reconsider their decision. It is therefore a good idea to review your contract and discuss your final working arrangements before submitting the request.
What Happens After Submitting a Resignation?
The employment contract remains active
Submitting a resignation does not mean the employee can immediately stop working.
During the resignation request period, the employment contract remains valid. Both the employee and employer are expected to continue fulfilling their contractual responsibilities until the employment relationship officially ends.
Simple resignation timeline
| Stage | What Happens |
|---|---|
| 1 | Employee submits resignation |
| 2 | Employer reviews the request |
| 3 | Employer accepts the resignation, or 30 days pass without a response |
| 4 | In an allowed situation, acceptance may be postponed for up to 60 days |
| 5 | Contract ends according to the applicable rule |
| 6 | Final employment rights are settled |
Employees should keep a copy of their resignation request and any response from the employer. These records can be useful if there is later a disagreement about the resignation date.
Notice Period for Contract Cancellation
For indefinite-term contracts
Notice requirements depend on the contract and how the employee is paid.
For an indefinite-term contract where the salary is paid monthly, an employee who wants to end the contract must generally provide 30 days’ written notice.
When the employer ends such a contract, the general notice period is 60 days. For an indefinite-term contract where the salary is not paid monthly, the required written notice is generally at least 30 days.
| Contract Situation | General Notice |
|---|---|
| Employee ends monthly-paid indefinite contract | 30 days |
| Employer ends monthly-paid indefinite contract | 60 days |
| Non-monthly indefinite contract | At least 30 days |
If the required notice is not followed, the party ending the contract may be required to pay the other party an amount equal to the employee’s wage for the applicable notice period, unless the parties agree otherwise.
Fixed-Term and Indefinite-Term Contracts
Why the contract type matters
A fixed-term contract normally continues until the agreed period ends, unless it is ended earlier under an applicable legal or contractual basis.
An indefinite-term contract works differently because either party may end it for a legitimate reason by following the applicable notice requirements.
| Contract Type | General Rule |
|---|---|
| Fixed-term | Normally ends when the agreed period expires |
| Indefinite-term | Can be ended according to the applicable notice rules |
| Mutual termination | Both parties agree to end the contract |
| Resignation | Employee follows the resignation procedure |
Workers should check the contract carefully before submitting a resignation. This is especially important when the contract has a specific end date or special termination conditions.
How to Terminate a Contract Through Qiwa
Online termination service
Saudi Arabia’s Ministry of Human Resources and Social Development provides an electronic Termination of Contractual Relationship service through Qiwa.
The service allows eligible Qiwa employees to submit a termination request electronically without needing to visit the employer. The Ministry lists the service as free.
Employees can use the official Qiwa service to submit a contract termination request online. The Saudi Ministry of Human Resources and Social Development explains the termination process and the steps workers need to follow.
Steps to submit a termination request
- Log in to your Qiwa Individuals account.
- Go to Services.
- Select Employment Contracts.
- Find and select the contract you want to terminate.
- Choose Terminate Contract.
- Select the reason for termination.
- Enter your Last Working Date.
- Review the information.
- Submit the termination request.
According to HRSD, the employee must have a valid contract on Qiwa, and there must not already be another termination request under approval for the same contract. The service does not require documents.
End-of-Service Benefits After Resignation
How resignation affects the benefit
When employment ends, an employee may be entitled to an end-of-service award according to the applicable rules.
For resignation specifically, the amount depends on the employee’s continuous service period.
| Continuous Service | Resignation Benefit |
|---|---|
| Less than 2 years | No resignation award under the specified rule |
| 2 to 5 years | One-third of the award |
| More than 5 but less than 10 years | Two-thirds of the award |
| 10 years or more | Full award |
The Labor Law provides one-third of the award after at least two and up to five years of continuous service, two-thirds after more than five but less than ten years, and the full award after ten years or more.
Workers can also review their salary and employment information through relevant resources such as Helper Salary in Saudi Arabia when comparing employment offers and contract terms.
What Workers Should Check Before Resigning
Review your employment contract
Before submitting a resignation, check your contract carefully. Look at your salary, contract type, notice period, job title, benefits, working conditions, and contract end date.
Make sure you understand your final working date before submitting the request. This can help prevent problems with your employer or confusion about your final settlement.
Check your salary and other payments
Workers should check whether they have any unpaid salary, overtime, leave balance, allowances, or other amounts that may be included in their final settlement.
For workers looking for new opportunities, you can also check current Saudi Arabia job opportunities while comparing the salary and contract terms of a new position.
Keep copies of important documents
Keep copies of your employment contract, resignation request, employer response, salary records, and other important employment documents.
The Ministry also states that when employment ends, the employer must provide a service certificate to the worker upon request and return documents that were deposited with the employer.
Final Settlement After Contract Cancellation
When should final payments be made?
When the employment relationship ends, the employer must settle the employee’s wages and other applicable rights within the period provided by the Labor Law.
If the employer ends the contract, the employee’s wages and rights should generally be settled within one week. If the employee is the one who ends the contract, the employer generally has up to two weeks to complete the settlement.
Workers should keep their salary records and other employment documents so they can check whether the final settlement has been completed correctly.
Frequently Asked Questions
Can I resign from my job in Saudi Arabia?
Yes. Resignation is recognized as one of the ways an employment contract can end under Saudi labor regulations. The employee should follow the applicable resignation process and contract requirements.
What happens if my employer does not respond to my resignation?
If the employer does not respond within 30 days, the resignation request is considered accepted. In certain circumstances, the employer can postpone acceptance for up to 60 days with a written explanation.
Can I withdraw my resignation?
Yes. An employee can withdraw the resignation request within 7 days of submitting it, unless the employer accepts it before the withdrawal.
How much notice should an employee give?
For a monthly-paid indefinite-term contract, the employee generally gives 30 days’ written notice. When the employer ends the contract, the general notice period is 60 days.
Can I terminate my contract through Qiwa?
Eligible employees can use the official Qiwa termination service. The employee selects the employment contract, chooses the termination reason, enters the last working date, reviews the details, and submits the request online.
Will I receive end-of-service benefits after resignation?
Resignation can affect the amount of the end-of-service award. The applicable amount depends on the employee’s continuous service period and the rules governing resignation.
Final Summary
The Saudi new labor law rules for contract cancellation and resignation provide a clearer process for employees who want to leave their jobs. A resignation request can be considered accepted after 30 days without an employer response, while acceptance may be postponed for up to 60 days in certain circumstances. Understanding the Saudi new labor law rules for contract cancellation and resignation can help workers prepare their documents, notice period, and final settlement properly.
Workers should understand the Saudi new labor law rules for contract cancellation and resignation before submitting a resignation or requesting contract cancellation.
