Everything You Need to Know About Resignation Under the Saudi Labor Law

Resigning from a job is a crucial decision that requires understanding your rights and obligations before taking action. In this article, we explain in detail the provisions of resignation according to the Saudi Labor Law and its executive regulations.

What is a Formal Resignation?

Resignation is the termination of the employment relationship by the employee, in accordance with the procedures and deadlines specified in the Labor Law. Its provisions vary depending on the type of contract (fixed-term or indefinite-term).

Resignation in Indefinite-Term Contracts

If you are on an indefinite-term contract (the most common in the private sector), you must:

  • Submit a written notice 60 days in advance if you are paid a monthly salary, according to Article 75 of the Labor Law.
  • Submit a notice 30 days in advance if you are among workers paid weekly or daily wages.
  • The parties may agree on a longer notice period, provided it does not exceed 60 days for monthly-paid workers.

Resignation in Fixed-Term Contracts

In fixed-term contracts (one year, two years, three years), resignation is more challenging:

  • An employee may not leave work before the contract ends except in specific cases.
  • If the employee resigns before the contract ends without a valid reason, they must compensate the employer for damages.
  • Compensation amount = remaining salary of the contract (maximum), or the actual salary for the remaining period (whichever is less).
  • The employer has the right to reject resignation in fixed-term contracts.

End-of-Service Benefits After Resignation

This is a very important point:

  • First five years: The employee receives one-third of the benefit.
  • Next five years (after the first 5 years): The employee receives two-thirds of the benefit.
  • After 10 years of service: The employee receives the full benefit.
  • This rule does not apply if the female employee resigns due to marriage or childbirth within 6 months.
  • If the employee resigns due to the employer violating the law, they are entitled to the full benefit.

Cases Where You Can Resign Immediately

You have the right to leave work without prior notice (and receive all your rights!) in these cases, according to Article 81 of the Labor Law:

  • If the employer fails to fulfill their contractual or legal obligations toward you.
  • If the employer has made false accusations against you.
  • If you have been subjected to violence or assault by the employer or a family member.
  • If the work environment poses a serious threat to your safety or health.
  • If the employer has suspended work due to force majeure.

Practical Tips Before Resignation

  • Submit your resignation in writing and obtain proof of receipt.
  • Calculate your end-of-service benefits first using the Ministry of Human Resources calculator.
  • Check your accrued leave balance — you are entitled to cash it out.
  • Review your employment contract to confirm notice provisions.
  • In case of dispute, contact the Labor Office via the “Labor Dispute Settlement” platform.

Frequently Asked Questions

Q: Can the employer reject my resignation?
A: In indefinite-term contracts, the employer cannot reject resignation after submitting the formal notice. In fixed-term contracts, the employer has the right to reject it except in legally permitted cases.

Q: What is the notice period for resignation?
A: 30 days for monthly-paid workers, and 30 days for non-monthly-paid workers. The parties may agree on a longer period, provided it does not exceed 60 days.

Q: Do I get end-of-service benefits if I resign before 5 years?
A: Yes, you receive one-third of the benefit for less than 5 years, two-thirds for 5 to 10 years, and the full benefit after 10 years.

Q: How can I confirm my rights before resigning?
A: Use the end-of-service benefit calculator on the Ministry of Human Resources website hrsd.gov.sa, or contact the nearest Labor Office.

Q: What if the employer is stubborn in accepting the resignation?
A: Submit a complaint through the “Labor Disputes Settlement” platform on the Ministry’s website, or visit the nearest labor office.

Source: Saudi Labor Law issued by Royal Decree No. M/51 and its amendments, Ministry of Human Resources and Social Development.