Saudi Labor Law End Of Service Benefits 2017

End of service reward calculator.

Saudi labor law end of service benefits 2017. The end of service benefits of worker s rights on the employer in the case of termination of the employment contract and it is obligatory on the employer to pay the worker at the end of the contract of employment whether it is a fixed term contract or indefinite. 1 2 salary for the first 5 years for each year served. For the detailed reading of your entitlement of end of service benefits please read this end of service benefits calculation. The end of service benefits of employee s rights on the employer in the case of termination of the employment contract and it is obligatory on the employer to pay the employee at the end of the contract of employment whether it is a fixed term contract or indefinite.

Saudi labour law 2 chapter i. As per article 84 of saudi labor law an employee is entitled to the following end of service benefits in case of termination. Termination of employee contract without providing end of service benefits article 80 saudi labor law an employer may terminate the contract without an award advance notice or indemnity in the following cases and provided that he gives the employee a chance to state his reasons for objecting to the termination. End of service benefits esb will be admissible after 2 years of service with the same employer at the rate of half a month wage for each of the first five years and one month wage for each of the subsequent years of service beyond five years.

Definitions article 1 this law shall be called the labor law. The maktab al amal rules or the labor court rules in saudi arabia are quite transparent. Esb is the same as the gratuity if an employee is working for a company and when he resigns or gets terminated he will get his full and final settlement from his company which is known as end of service benefits. If an employer does not pay for these benefits the employee has every right to go to labor court against his employer.

The calculation of end of service benefits varies depending upon the fact that the employee is terminated or resigned. These are benefits given to employees at the time they leave the company saudi labour law is very helpful for employees when calculating the end service benefits. If an employee is working for a company and when he resigns or gets terminated he will get his full and final settlement from his company which is known as end of service benefits. Article 2 the following terms and phrases whenever mentioned in this law shall have the meanings expressed next to them unless the context requires otherwise.

Basic information about the work contract based on the saudi labor law here are the basics of an employment contract. End of service benefits in saudi means that any employee or worker who is working in kingdom of saudi arabia ksa get some cash after ending their service and will be entitled for end of service benefits as per saudi labor law. Employees in the kingdom of saudi arabia are entitled to end of service benefits esb. By shafprince february 25 2017.

That s the easy way to estimate end of service benefits expense the maturity date of the reward and how to calculate it according to the rules of the saudi labor law. Definitions and general provisions section one.