Termination of Work Contract in Saudi Arabia: Avoid These to Stay in Your Job


The Kingdom of Saudi Arabia- a country harboring millions of professionals from all across the globe, stands as a lucrative option for all those looking forward to lead a comfortable professional life. A country with nearly 31% of its population constituting expats sure does entice any individual to secure a job offer here. But there are certain subtleties you need to comprehend with, before you’re on your flight to Saudi Arabia.

One such thing to consider is the employment contract you’re going to sign. Of course, you know about it being both in English and Arabic, but is that all?

What about the termination and related clauses? Yes, it does need some space of you mind and thoughtful consideration. Hence, the section below will seek to discuss the same and help you gain a clear insight about the employment contract in the KSA and the clauses leading to its termination.

 Definite and Indefinite Term Contracts in the KSA

Before we proceed any further, let’s take a stroll through the two major kinds of contract you might be offered in this country.

A definite/fixed-term contract is used to strike a contractual relationship between an employer and an employee for a specified period. In Saudi Arabia, individuals coming in the process of job-search or on free-visa are made to sign a fixed-term work contract.

The most blunt detail to notice here is that an employer simply can’t terminate a worker abiding by this contract before his term ends. However, indemnifying is totally viable. The amount of indemnity will be determined by the Commission of the Labor Disputes, which demands the recruiter to pay the salary and other benefits, in case the termination is unjust. Although termination in such a case is meagerly observed, but terminating an employee after the term ends doesn’t require a one month’s notice.

An Indefinite-term contract on the other hand is quite unique in Saudi Arabia and the Gulf. It is deemed to end at the date of the expiry of ‘Iqama’. Quite opposite to the kind mentioned at the opening, herein both parties have the right to terminate the contract with one month’s notice.

In addition to this, employer won’t be obliged to pay any benefits till the date of Iqama. The compensation would only be provided for the period you’ve worked. For those who get remunerated monthly, a 30 days’ notice period is mandatory and for all others, the period reduces to 15 days. However, if any party fails to serve this period, an amount equal to the wages for the same will be payable.

Termination of Work Contract Without Notice Period

Although, in case of an indefinite contract it requires for the employer or the employee to provide a months’ notice period, but there are certain clauses that might cause the contract to terminate pre-maturely. Some prominent ones are mentioned below.

  • In Saudi Arabia if an employee exhibits any kind of misconduct or an act of infringement, employer can terminate him without any notice.
  • During the tenure of employment, if the worker physically harms the employer, supervisor or any other co-employee, a termination without any notice will totally be legitimate.
  • If the worker is absent from work for more than 20 days without a genuine reason, the employer is required to send him emails or letters on the company head to the registered address. However, if this completes 10-15 days of absenteeism, the recruiter can terminate him without any notice.
  • A deliberate move by the employee to cause any materialistic damage to the employer/organization, reported within 24 hours will also lead to the termination of work contract.
  • If the worker takes advantage of his work to gain personal benefits, employer can nullify his contract without any notice.
  • Forgery of documents’ of any sort will definitely  terminate one’s employment contract.
  • While working in the KSA, if the worker discloses business or industry secrets to someone who’s not authorized to receive such info, he will also face termination.

Of course, working in Saudi Arabia there’ll be numerous minute subtleties you’ll have to heed to. Nevertheless, if taken proper care, the country can help an individual achieve whatever he expects from his professional life. So without further ado get your bag pack and your resume updated. A high-shining career in Saudi Arabia awaits you.