Notice Periods and Termination in Saudi Labor Law
When resigning or terminating employment in Saudi Arabia, understanding notice periods is crucial. Here are the regulations regarding notice periods and termination under Saudi Labor Law:
Notice Periods Based on Contract Type
Payment in lieu of Notice Period:
- Parties can terminate the contract without notice by paying the full salary for the period, as per Article 76 of Saudi Labor Law.
Fixed-Term Contract:
- Notice period is as per the contract terms or 60 days if not specified.
Indefinite Contract:
- Notice period is 60 days, as per Article 75 of Saudi Labor Law.
Termination Conditions
Termination under Article 77:
- Employers can terminate without notice under Article 77 but must compensate the employee heavily if not stated otherwise in the contract.
Minimum Notice Period:
- Employers can terminate due to employee misconduct without notice under Article 80.
- Employees can resign due to employer misconduct without notice under Article 81.
- One day notice is required for termination or resignation during the probation period, as per Article 53.
Contractual Considerations
Minimum Notice Period:
- The notice period specified by Saudi Labor Law serves as the minimum requirement.
- Parties must adhere to longer notice periods stated in the employment contract.
These regulations ensure fair treatment of both parties involved in employment contracts in Saudi Arabia.