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This is mandatory for those who have signed an indefinite employment contract. If the signatories of the fixed-term employment contract are not paid monthly, 30 days’ notice is sufficient to terminate the employment.
Although the relationship with the worker is terminated by the employer, the above rules apply. The ministry also directed that those who do not comply with the notice period should be paid equal wages as compensation to the other party.
At the same time, there are three stages to receiving compensation if the employment contract in Saudi ends. The Saudi Ministry of Human Resources and Social Development has clarified the circumstances under which a worker or employer is entitled to compensation in the event of termination of contract. If the contract is legally terminated and the notice period is not complied with, the second party will be entitled to compensation equal to the worker’s wages at the time of notice.
If the contract is terminated illegally, compensation must be paid if the duration of employment and compensation have been determined in advance. Compensation is payable on the basis of the number of years worked. If the contract is terminated illegally, the compensation will have to be paid as the remaining monthly salary for termination of the contract if it has not been decided in advance.
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In the case of an unlimited employment contract, the employer must inform the employer within 60 days of termination of the contract if the employee is receiving a salary. However, in case of non-receipt of monthly salary, the employer has to be informed of the termination of the contract within 30 days.
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