SAUDI ARABIA

60-day notice required to terminate
employment contract, says ministry
May 19, 2022

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Okaz/Saudi Gazette
RIYADH — The Ministry of Human Resources and Social
Development has clarified that an employee must notify the
employer about his intention to terminate the work contract at least
60 days in advance if the period of the contract is unlimited and the
employee receives the wage on a monthly basis.
“In the event the employee does not receive his wage monthly, it is
required for him to notify the employer about the termination of
the contract within a period of no less than 30 days. These rules
will also apply to the employer if he terminates the contractual
relationship with the worker,” the ministry said while clarifying the
three situations under which the employee or the employer is
entitled to compensation upon termination of the contractual
relationship between the two parties.
The ministry stated that in the event of terminating the contract for
a legitimate reason and one of the parties does not comply with the
notice period, material compensation shall be paid to the affected
party, equal to the wages of the worker during the notice period.
“In the event the contract is terminated for an unlawful reason and
does not include a specific compensation and the duration of the
contract is unlimited, a material compensation estimated at 15 days
of wages shall be disbursed to the employee for each year of
service, provided that the compensation is not less than two
months of wages,” the ministry said.

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