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Saudi Arabia: Termination of employment

Updating author: Sara Khoja, Clyde & Co LLP
Original author: Al Tamimi & Company

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  • There are various ways that an open-ended contract of employment may be lawfully terminated. (See General)
  • Where the employer or employee terminates an open-ended employment contract with notice, there is a minimum statutory notice period of 60 days for monthly paid employees and 30 days for other employees. (See Notice periods)
  • The employer may terminate an open-ended employment contract at any time, with written notice, for any "valid" reason. (See Dismissal with notice)
  • The employer may dismiss an employee on an open-ended or fixed-term contract without notice (and without payment of an end-of-service award, where applicable) in certain circumstances. (See Summary dismissal)
  • Employees have special dismissal protection in certain circumstances. (See Special dismissal protection)
  • The employee may terminate an open-ended employment contract at any time, with written notice, for any "valid" reason. (See Resignation)
  • There are no particular redundancy procedures or payments, and there is no concept of collective redundancies and no requirement to inform or consult employees in advance about planned redundancies, except in limited circumstances in relation to nationals of Saudi Arabia. (See Redundancy)
  • Employees have a statutory entitlement to an "end-of-service award" in many cases of termination of employment. (See Severance payments)
  • When an employee reaches the official retirement age, the employment automatically terminates unless the employer and employee agree that the employee will continue in employment. (See Retirement age)
  • The employer must, at the employee's request, provide them at the end of employment with a "service certificate" free of charge. (See Service certificate)
  • Disputes arising from the employment relationship, including disputes related to termination, are ruled on by the Labour Court. (See Contesting dismissals)