Saudi Arabia

Saudi mandates 60-day notice to terminate employment contract

The Ministry of Human Resources and Social Development has clarified that an employee must notify the employer about his intention to terminate the work contract at least 60 days in advance if the period of the contract is unlimited and the employee receives the wage on a monthly basis.

In the event the employee does not receive his wage monthly, it is required for him to notify the employer about the termination of the contract within a period of no less than 30 days. These rules will also apply to the employer if he terminates the contractual relationship with the worker.

The ministry stated that in the event of terminating the contract for a legitimate reason and one of the parties does not comply with the notice period, material compensation shall be paid to the affected party, equal to the wages of the worker during the notice period.



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