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, employer decision, or worker 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 benefits, and how to issue a final exit visa.

Cases of Worker Termination

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 its expiry unless renewed by mutual agreement.
  • Mutual Agreement: Both parties may terminate the contract at any time by mutual consent.
  • Resignation: The worker may submit a resignation while adhering to the notice period (usually 30 days).
  • Termination by Employer Decision: For statutory reasons such as job duty violations 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 must pay compensation equal to the wages for the remaining notice period.

End-of-Service Benefits

End-of-service benefits are among the most important rights of a worker upon termination. They are 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 benefits are 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 benefits are paid after 2 years, two-thirds after 5 years, and the full amount after 10 years.

End-of-service benefits are not 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 “Terminate Worker Contract” service.
  3. Enter the worker’s residency number or border number.
  4. Specify the reason for termination (contract expiry, resignation, termination of services, etc.).
  5. Settle the worker’s rights, including due salary, leave, overtime, and end-of-service benefits.
  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 duty: 30 days from the date of visa issuance.
  • 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 1,000 SAR for each month of delay.

Worker Rights Upon Termination

The Saudi Labor Law guarantees workers’ rights upon termination, including:

  • Receiving a service certificate from the employer.
  • Receiving end-of-service benefits in full.
  • Receiving compensation 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 business 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 legal 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 the 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.