It has been confirmed by Saudi Arabia's Ministry of Human Resources and Social Development that, if the work contract is unlimited and the worker receives his salary on a monthly basis, a worker must inform his employer at least 60 days in advance of his intention to terminate the work contract.

The worker must inform his employer about the end of the contract within 30 days of not receiving his salary on a monthly basis, if he is not receiving his salary on a monthly basis.

In addition to workers, employers are also covered by the same rules, if they terminate the employment contract. The ministry clarified that there are three situations in which workers or employers are entitled to compensation while ending their contract relationship.

1. Additionally, the ministry clarified that, if a work contract is terminated for a legitimate reason and one of the parties does not comply with the notice period, the affected party must receive material compensation equal to the salary of the worker during the notice period.

2. According to the ministry, if a contract is terminated for an unlawful reason and does not include a specific compensation, as well as where the contract is unlimited in duration, a material compensation estimated with 15 days' salary shall be paid for each year of service, as long as it is not less than two months' salary, added the ministry.

3. If the contract is terminated for an illegal reason, does not include a specific compensation, and the duration of the contract is limited, a material compensation estimated at the employee's salary for the remainder of the work contract shall be paid, but may not be less than the salary of 2 months.

SOURCE : SAUDI EXPATRIATES