Saudi Labour Law For End Of Service Benefits Article 84

1 2 salary for the first 5 years for each year served.

Saudi labour law for end of service benefits article 84. Full salary after the first 5 years for each year served. You are resigning being terminated or end of the contract. Article 81 of the saudi labor law provides 7 special scenarios under which an employee can resign without any notice and still claim the full end of service benefits. Definitions article 1 this law shall be called the labor law.

As per the new changes in saudi labor law 2019 an employee can be fired without even receiving his end of service benefits esb in the following conditions. 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. Upon the end of the worker s service the employer shall pay his wages and settle his entitlements within a maximum period of one week from the date of the end of the contractual relation. 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.

If the worker ends the contract the employer shall settle all his entitlements within a period not exceeding two weeks. 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. These are considered as the major articles when calculating the end services benefits in saudi arabia. 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. End of service benefits can be calculated between the time of joining and leaving the organization. In case of resignation by employee. Definitions and general provisions section one.

There is nothing in between. Keep in mind that there is no esb entitlement if an employee is terminated under article 80 of saudi labor law. Upon the end of the work relation the employer shall pay the worker an end of service award of a half month wage for each of the first five years and a one month wage for each of the following years. 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.

Keep in mind that these are special cases we have covered the resignation under saudi labor law in normal circumstances in this link.