Your Rights When Employment Ends under Saudi Labor Law: End-of-Service Award and Beyond

The end of an employment relationship — by resignation, termination, or contract expiry — raises immediate questions: how much am I owed, when must it be paid, and what if the employer refuses? Saudi Labor Law answers these questions with clear provisions, and knowing them in advance is the best protection for your rights.

The End-of-Service Award: The Basic Rule

Under Article 84 of the Labor Law, when the employment relationship ends the worker is entitled to an award calculated on the final wage as follows:

• Half a month’s wage for each of the first five years of service.
• A full month’s wage for each subsequent year.
• Partial years count proportionally to the time actually worked.

What Changes If You Resign?

Resignation does not necessarily forfeit the award, but it reduces it based on length of service under Article 85: nothing for less than two years of service, one third of the award for two to five years, two thirds for five to ten years, and the full award for ten years or more.

Exceptions preserve the full award even when the worker ends the contract — including a female employee leaving within six months of marriage or three months of childbirth, and leaving work due to force majeure.

Other Rights That Are Often Forgotten

The end-of-service award is not everything. When employment ends, also check:

• Unpaid wages and any outstanding financial dues.
• Compensation for accrued, unused annual leave.
• A free service certificate stating your period of service, occupation, and final wage — which may not include anything harmful to you.
• Compensation for unlawful dismissal if your contract was terminated without a legitimate reason.

Notice Periods in Indefinite-Term Contracts

Following the recent Labor Law amendments (in force since February 2025), the notice period for ending an indefinite-term contract is sixty days when the employer terminates and thirty days when the worker resigns. Breaching the notice period entitles the other party to compensation.

If the Employer Refuses: How to Claim

Claims start with amicable settlement through the Ministry of Human Resources platform; if unresolved within the statutory window, the dispute is referred to the Labor Court via the Najiz platform. Do not delay: some labor claims become time-barred after a period from the end of employment, and early documentation — the contract, wage records, correspondence — makes all the difference in proving your right.