Guide to resignation in an indefinite contract according to the Saudi Labor Law 1446 | Terms and Rights

How do you terminate your indefinite contract and ensure your full statutory rights?

Are you confused about how to resign from an indefinite employment contract without losing your financial entitlements? Perhaps you are wondering about the correct notification period after the recent amendments, or fear that your employer will be stubborn in accepting your request. Many Saudi employees face a constant worry about how to leave their current jobs to move on to better opportunities while ensuring full severance pay and avoiding any compensation under Article 77.

In this article, we will provide you with a comprehensive guide and precise legal solutions based on the latest amendments to the Saudi Labor Law of 1446H (2024). You will learn in detail how to formulate a legitimate reason to terminate the contract, the practical steps of documenting through the Qawwa platform, and how to accurately calculate your financial entitlements. By reading this guide, you will have the confidence and legal knowledge needed to secure your future career and exit your current job in the best way possible.

The concept of termination of an indefinite contract in light of the new amendments

What is an indefinite contract and the categories subject to it in the Saudi system

The indefinite contract in Saudi Arabia is one of the most important pillars of Job security for Saudi workerswhere it is not restricted by a specific expiration date. According to the Labor Law, a fixed-term contract becomes Indefinite contract If both parties continue to execute it after its expiration, or if it is renewed for three consecutive times, or if the term of service reaches four years (whichever is less). It is important to note that this type of contract Legally restricted to Saudi nationals only.

The difference between requesting resignation and termination of contract under Article 75 of the Labor Law

Many people confuse the concept of "resignation" with "Article 75 termination". In indefinite contracts, termination is usually done by Unilateral will of one of the parties Provided there is a legitimate reason. Recent amendments in 1446 AH clarified that termination in an indefinite contract does not require the employer's "consent" as in a traditional resignation, but rather A legal procedure that takes effect upon notification The deadline has passed.

Article 75 of the Labor Law controls the termination of an indefinite contract

The notice period in an indefinite contract: Why it differs between worker and employer

Article 75 establishes strict controls on Notification period. If the termination is by WorkerA written notice must be given before 30 days at least (if he or she is paid monthly). If the termination is by EmployerThe new amendments increased the duration to 60 days for monthly salaried workers. This discrepancy is due to the organizer's desire to Give the worker enough time to look for an alternative job.

Procedures for written notice of termination through the Qawwa platform and statutory means

became Documentation of the notice via Qiwa is the surest way. Verbal notice is no longer sufficient to prove the termination of a contractual relationship before the labor courts. The Digital documentation It protects the worker from "huroob" claims that some employers may resort to in order to disrupt the employee's rights.

Determining the legitimate reason for the termination of the contractual relationship to ensure rights

The system requires that the termination be based on "A legitimate reason". If it is proven that the termination was for cause IllegalThe injured party is entitled to compensation under Article 77. Therefore, the termination letter should be intelligently drafted to ensure protection from any legal loopholes.

Legal procedures for submitting a resignation and ensuring its acceptance

Article 79 bis: When a resignation request is considered accepted if the employer does not respond

Article 79 bis is decisive; a request for resignation is considered Automatically accepted By the way 30 days from the date it was submitted without a response. The employer can Postponement of admission for no more than 60 days Additional if the business interest requires it, subject to a written reasoned explanation.

Terms and durations of resignation in an indefinite contract

The worker has the right to withdraw his request within a period not exceeding 7 days From the date of submission. Unless the employer accepts it. So, the worker must be decisive in their decision because the window for backtracking is very narrow.

Legal treatment if the employer refuses to accept the notice of termination of the contract

If the paper receipt is rejected, you must resort to Powerful platform or send the notification via Registered mail. Documentation is the key to survival if the matter develops into a labor lawsuit.

• Have you confirmed that my contract is "indefinite"?
• Did you report via Qawwa 30 days ago (for worker)?
• Did you state a "legitimate reason" in the notice?
• Have you checked my rights to severance pay?

Worker's financial entitlements and rights upon termination of an indefinite contract

Severance pay in an indefinite contract: Are you entitled to the full amount

Article 85 applies in cases of resignation; the worker is entitled to One third of the bonus to serve between 2-5 years, andtwo-thirds between 5-10 years, andFull bonus If it exceeds 10 years.

How to calculate severance pay according to Articles 84 and 85 of the Labor Law

Hisbah (Article 84) is based on Half a month's pay for each year of the first five years, andOne month's wages for each year Furthermore, based on Last actual paycheck.

Liquidation of rights: Vacation balance, notice period pay and certificate of service

must be filtered Cash compensation for vacation balancepay for the notice period, get Free service certificate According to Article 64.

Exceptional cases and legal warnings when leaving work

Cases of termination without notice with retention of rights under Article 81

Article 81 gives workers the right to leave work immediately without notice with full rights in cases such as non-payment of salaries or assault.

Compensation for wrongful termination under Article 77

In indefinite contracts, if the termination is wrongful, the aggrieved party is entitled to compensation (often 15 days pay for each year of service), with a minimum of Two months' wages.

Effect of a non-compete clause after the termination of an indefinite contract

Article 83 authorizes Non-compete clause Up to a maximum of two years, but the condition is waived if the termination by the employer is for an unlawful reason.

Frequently asked questions about resignation and termination of an indefinite contract

• Q: Can I work for a competitor immediately? c: It depends on whether there is a non-compete clause in your contract and how legal it is.
• Q: What if the company refuses to liquidate my dues? c: Go directly to Tarafi to file a labor complaint.

Conclusion: Summary of rights and final steps to terminate the contract

Key points to remember:

• Adhere to the notification deadline: 30 days for the worker to ensure the integrity of his/her legal position.
• Documentation via powers: is the digital guarantee of your rights.
• Legitimate reason: Protects you from Article 77 claims.

Thank you for reading this guide. We hope this information has given you the clarity you need to confidently make your career decisions under the Saudi labor law.