Saudi Labor Law End Of Service Benefits 2017
Definitions and general provisions section one.
Saudi labor law end of service benefits 2017. If an employer does not pay for these benefits the employee has every right to go to labor court against his employer. End of service reward calculator. That s the easy way to estimate end of service benefits expense the maturity date of the reward and how to calculate it according to the rules of the saudi labor law. End of service benefits esb will be admissible after 2 years of service with the same employer at the rate of half a month wage for each of the first five years and one month wage for each of the subsequent years of service beyond five years.
The calculation of end of service benefits varies depending upon the fact that the employee is terminated or resigned. As per article 84 of saudi labor law an employee is entitled to the following end of service benefits in case of termination. Saudi labour law 2 chapter i. By shafprince february 25 2017.
Employees in the kingdom of saudi arabia are entitled to end of service benefits esb. Esb is the same as the gratuity if an employee is working for a company and when he resigns or gets terminated he will get his full and final settlement from his company which is known as end of service benefits. That s the easy way to estimate end of service benefits expense the maturity date of the reward and how to calculate it according to the rules of the labor law. Article 2 the following terms and phrases whenever mentioned in this law shall have the meanings expressed next to them unless the context requires otherwise.
The end of service benefits of employee s rights on the employer in the case of termination of the employment contract and it is obligatory on the employer to pay the employee at the end of the contract of employment whether it is a fixed term contract or indefinite. 1 2 salary for the first 5 years for each year served. It should not be used by those exempt from the provisions on the labor law under article 7 of saudi labor law. The end of service benefits of worker s rights on the employer in the case of termination of the employment contract and it is obligatory on the employer to pay the worker at the end of the contract of employment whether it is a fixed term contract or indefinite.
Definitions article 1 this law shall be called the labor law. If an employee is working for a company and when he resigns or gets terminated he will get his full and final settlement from his company which is known as end of service benefits. For the detailed reading of your entitlement of end of service benefits please read this end of service benefits calculation. Saudi arabian government has provided a facility to know your end of service awards according to saudi labor law.
End of service benefits in saudi means that any employee or worker who is working in kingdom of saudi arabia ksa get some cash after ending their service and will be entitled for end of service benefits as per saudi labor law. These are benefits given to employees at the time they leave the company saudi labour law is very helpful for employees when calculating the end service benefits.