Introduction

Terminating the services of a foreign worker in the Kingdom of Saudi Arabia is governed by the Labor Law and its executive regulations. Whether the termination is by mutual agreement, a decision by the employer, or the worker’s resignation, there are clear procedures that must be followed to ensure the rights of all parties. In this article, we explain the steps for terminating services, end-of-service gratuity, and how to issue a final exit visa.

Cases of Terminating Worker Services

The Saudi Labor Law stipulates several cases in which the employment relationship may be terminated:

  • Contract Expiry: If the contract is for a fixed term, it ends upon the expiry of its duration unless renewed by mutual agreement.
  • Mutual Agreement: Both parties have the right to terminate the contract at any time by mutual consent.
  • Resignation: The worker has the right to submit a resignation while adhering to the notice period (usually 30 days).
  • Termination by Employer Decision: For statutory reasons such as breaching job duties or unexcused absence.

Notice Period

The party wishing to terminate the contract must notify the other party before the agreed-upon period in the contract, which must not be less than:

  • 30 days if the worker is paid a monthly salary.
  • 15 days in non-monthly contracts.

If the notice period is not adhered to, the violating party is required to pay compensation equal to the wages for the remaining notice period.

End-of-Service Gratuity

End-of-service gratuity is one of the most important rights of a worker upon termination of services. It is calculated as follows:

  • First 5 years: Half a month’s wage for each year of service.
  • After 5 years: A full month’s wage for each year.
  • The gratuity is calculated based on the last wage received by the worker.
  • If the contract is indefinite and terminated by the worker’s resignation: one-third of the gratuity is paid after 2 years, two-thirds after 5 years, and the full gratuity after 10 years.

No end-of-service gratuity is due if the worker is terminated for statutory reasons such as forgery or theft of the employer’s funds.

Steps to Terminate Services via Qiwa

The Qiwa platform is the approved platform for terminating the services of a foreign worker. The steps are as follows:

  1. Log in to the Qiwa platform using the establishment’s account.
  2. Select the service “Terminate Worker Contract”.
  3. Enter the worker’s residency number or border number.
  4. Specify the reason for terminating services (contract expiry, resignation, termination of services, etc.).
  5. Settle the worker’s rights, including due salary, leave, overtime, and end-of-service gratuity.
  6. Issue a final exit visa after settling rights.

Issuing a Final Exit Visa

After terminating services and settling dues, a final exit visa must be issued for the worker. The worker is granted a grace period to leave the Kingdom as follows:

  • If the worker is on the job: 30 days from the date of issuance of the visa.
  • If the worker is outside the Kingdom: 60 days.
  • In some cases, the grace period can be extended to 90 days.

⚠️ Important: A worker who does not leave the Kingdom within the specified grace period is subject to a delay fine of 1000 SAR for each month of delay.

Worker’s Rights Upon Termination of Services

The Saudi Labor Law guarantees the worker’s rights upon termination of services, including:

  • Receiving a service certificate from the employer.
  • Receiving the full end-of-service gratuity.
  • Receiving payment for unused annual leave.
  • Receiving a return ticket to their home country at the employer’s expense.
  • Receiving due wages for the actual period of work.

Frequently Asked Questions

What is the duration for terminating a worker’s services?

The duration varies depending on the reason for termination. In the case of mutual agreement, the process takes 3 to 7 working days via the Qiwa platform.

Is the worker entitled to resign during a fixed-term contract?

Yes, but they may incur a

Also for the employer if the termination of the contract is without a legitimate reason, unless the contract provides otherwise.

When is the employee not entitled to end-of-service gratuity?

When dismissed for statutory reasons by a judicial ruling, such as forgery, theft, or disclosure of work secrets, or if they resign before two years in an indefinite-term contract.

How can I inquire about settling a worker’s file?

You can inquire via the Qiwa platform or through the inquiry service for a transaction at the Ministry of Interior’s Absher.

Can a final exit visa be canceled after it is issued?

Yes, it can be canceled before the worker departs through the Absher or Qiwa platforms, with the payment of the prescribed fees.