Saudi: Expats worried about their end of Service Benefits

Some expatriate workers in the Kingdom are eager to resign from their jobs to avail their end of service benefits amid of uncertainty in the job.

These employees feel no immediate threat to their job but they prefer to resign to avail their end of service benefits to safeguard their earnings over the years.

Most of the expatriate workers, employed in private sector having considerable service duration, are entitled to receive a handsome amount as an ‘End of Service’ benefits upon ending of employment.

The end of service benefits (ESB) is the right of a worker 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 fixed-term or indefinite.

Article 85 provides that if the work contract is terminated due to the employee’s resignation, he shall be entitled to one third of the benefit after two to less than five consecutive years of service and two thirds of the benefit after five to less than ten years of service and the whole benefit if his service period reaches or exceeds ten years.

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Recently, Ibrahim Al Marzouq, a senior official from Ministry of Labor and Social Development in Eastern Province, said that if a worker has not completed two years of service then he is not entitled to claim ESB.

The vast majority of the workers are not only hoping but heavily banking on ESB when they leave their job and return home. However, they are, now considering the option of quitting as they stare at uncertain financial future.

Some companies, especially in the construction sector, have been defaulting payment of ESB and other benefits. Scores of workers have returned home by authorizing their diplomatic missions to collect the amount and remit to them.

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The workers, who had returned home, have been inquiring about the status of their ESBs with their diplomatic missions. Other workers, who resigned but living in Kingdom to receive the amount, have also not been able to get their ESB.

Also, employees, who have not resigned and still working but desperately looking for an amicable final exit with ESB, are also living on hope.

The resignations of some employees, who have resigned in hope to claim ESBs, were declined by employers because of funds crunch, said sources.

Some of the Asian diplomatic missions have been flooded with requests for intervention in claiming ESBs. Few of them have hired local law firms to secure pending arrears on behalf of their nationals.

 

Source Credit: Saudi Gazette

 

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