'Without Genuine Reason', 12,500 Saudis Lose Their Jobs Due To Contract Termination
Category: Accidents

As many as 12,520 Saudi men and women left their jobs due to the termination of their work contracts without a valid reason during the second half of 2021, according to a monitoring conducted by Okaz/Saudi Gazette based on government reports.

It was discovered that 5,761 Saudi employees resigned under the provisions of Article 77 of the Labor Law, whereas 6,759 were dismissed under the same provision.

In the second half of last year, 3,335 Saudi male employees tendered their resignations, while 2,426 Saudi women made the same decision, bringing the total number of Saudis who submitted their resignations under Article 77 of the Labor Law to 5,761.

The employees whose contracts were for a fixed period of time are required to pay compensation to the employers during the remaining period of their contract.

As for employees whose contracts have unlimited terms, they must pay compensation equivalent to 15 days of wages for each year of the previous contract period. The average number of Saudis who resign per day is about 31 Saudis.

Saudi employees were fired from their jobs based on Article 77 of the Labor Law in about 6,759 cases, including 4,094 males and 2,665 females.

A party affected by the termination of the contract (employer or employee) for an unlawful reason is entitled to compensation equivalent to 15 days of wages for each year of the worker's service years when the contract is for an unlimited period of time.

However, if the remainder of the contract is for a fixed term, the wages for the period will be paid to the affected party, and the article stipulates that the compensation cannot be less than the worker's wages for two months.

In terms of the Saudis whose contracts were terminated due to Article 80 of the Labor Law, their number amounted to 15,116 male and female employees during the second half of 2021, with an average number of 82 Saudi men and women being fired every day.

A worker's contract can be terminated by the employer without payment of remuneration under article 80 of the Labor Law.

The article includes the following reasons for termination: "the employee's assault on his superiors or subordinates; his making an act that violates someone's honor or trust; his committing an act that incurs losses for the company; or his unauthorized absence for a period of 30 years or 15 consecutive days without warning; or the employee's disclosure of industrial secrets."

The law points out that there will be exemptions in certain cases.

09 Jun, 2022 0 590
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