Saudi Labor Law Notice Period: Rules and Regulations

The notice period in Saudi Labor Law is the time that one of the parties to an employment relationship has to notify the other, either of their dismissal in the case of the employer or of their resignation in the case of the employee. The Saudi Labor Law resignation notice period or in case of dismissal will depend on the type of employment contract.

In this article, you will learn the different applicable conditions of the Saudi Labor law resignation notice period and also in case of dismissal. Likewise, you will know the notice periods according to each type of employment contract and other general aspects like the payment in lieu of the notice period.

Pay instead of giving the notice period

This figure is contemplated in Article 76 of the Saudi Labor Law and establishes that any of the parties who want to terminate the employment contract without taking into account the Saudi labor law notice period can do so by paying the full salary corresponding to this period of time.

As we can see in Saudi Arabia, in addition to the notice period there is the option of making a payment corresponding to the notice period instead of actually granting it.

Notice period in fixed-term employment contracts

In cases of fixed-term contracts, the parties have the time that they themselves have established in the respective employment contract. Likewise, if this period is not established in the employment contract, the notice period will be 60 days.

On the other hand, a fixed-term contract with a foreign employee must necessarily establish a notice period.

Notice period in indefinite-term employment contracts

In Saudi Arabia, in open-ended employment contracts, the notice period is an important element that regulates the termination of the employment relationship by the employee or the employer. In this sense, the notice period in Saudi Arabia provides adequate time for both parties to take the necessary measures.

As provided in Article 75 of the Saudi Labor Law, the notice period in these cases is 60 days.

Termination under Article 77 of the Saudi Arabian Labor Law

According to Article 77 of the Labor Law, if the employer despite an employee unjustifiably, the employee will obtain compensation. The employment contract may establish the amount of this compensation, but if it does not have it, the worker may opt for the following compensation:

• Indefinite-term contracts:

Fifteen days of salary for each year of the employee in the company.

• Fixed-term contracts:

The salary for the remaining time of the duration of the employment contract. Likewise, the above compensation cannot be less than two months’ salary.

Cases of minimum notice periods

There are a series of exceptions and assumptions that allow any of the parties to the employment relationship not to grant or grant the minimum notice period

In this sense, Article 80 of the Saudi Labor Law provides for the 9 valid reasons on which an employer can justifiably dismiss an employee without notice period which are related to misconduct by the worker in the company.

Behaviors that justify the resignation under the probation period in Saudi Arabia

These are the behaviors stipulated in the Labor Law for a dismissal to be justified and without prior notice:

• Aggressive behavior against the employer or hierarchically superior criminals.
• Failure to comply with the essential obligations of the job and legitimate superior orders.
• Intentionally failing to comply with occupational health and safety instructions.
• Inappropriate conduct:

In this case, if an employee engages in inappropriate conduct or violates the company’s general policies and regulations, such as sexual harassment, theft, violence, or defamation, he or she may be fired without prior notice.

• Intentionally generating material losses to the company.
• Deception, fraud, or falsification of documents to obtain the job:

If an employee provides false or misleading information during the hiring process or commits fraud against the company, he or she may be fired without taking into account the legal notice period.

• That the employee is in compliance with the probation period.
• That the employee is absent without excuse for more than 30 days in a work year or 15 consecutive days.
• Illegally taking advantage of the job for personal benefit or revealing the company’s industrial or commercial secrets.

Likewise, it must be mentioned that the employer must provide the opportunity for the employee to make the corresponding objections. This also guarantees the employee’s right to defense and avoids unilateral dismissals. In addition to losing the right to the notice period, he will also not be compensated.

Article 81 of the Saudi Labor Law: Misconduct of the employer towards the employee

On the other hand, the employee can resign without prior notice if he or she is a victim of mistreatment by his or her employer under Article 81 of the Saudi Arabian Labor Law.

Some situations of mistreatment by the employer towards the employee that could justify the employee’s resignation Saudi Labor Law without prior notice maybe some of the following:

• Physical abuse or violence:

If the employer or its representatives physically assault an employee. This, whether systematically or in serious isolated incidents, the employee may resign without notice.

• Harassment and discrimination:

Let us remember that Saudi Arabia is a country in which many foreigners want to work. The employee may be discriminated against due to his or her status as a foreigner, among other things.  If the employee is subject to systematic harassment, verbal abuse, discrimination, or unfair treatment, the employee may have grounds to resign without granting the legal notice period.

• Exposure to unsafe working conditions:

In this sense, the employer must provide a safe working environment and conditions. So, the employee must feel that they do not run any type of risk when carrying out their duties at work.

• Failure to comply with obligations of the employment contract:

This may include irregular payment of salaries or benefits, among other obligations agreed in the employment contract.

It is important to highlight that these causes should not be considered exhaustively but rather illustratively. So other types of conduct may occur that are also considered mistreatment by the employer towards the employee.

Article 51 of the Labor Law of Saudi Arabia. Notice period in probation period

For this type of case, whether due to Saudi Labor Law resignation notice period or dismissal, will be one day. This according to Article 53 of the Labor Law of Saudi Arabia. Likewise, an important point to take into account is that in this case, if the employment contract establishes a longer period to grant the notice period, the notice period of the employment contract will be effective above the notice period of one day of article 53 of the Labor Law of Saudi Arabia.