Saudi Labour Law For End Of Service Benefits Article 84

Keep in mind that these are special cases we have covered the resignation under saudi labor law in normal circumstances in this link.

Saudi labour law for end of service benefits article 84. There is nothing in between. If any company is fails to pay the fine to fix the issue in time the ministry of labor social development can also suspend its services. 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. Upon the end of the work relation the employer shall pay the worker an end of service award of a half month wage for each of the first five years and a one month wage for each of the following years.

End of service benefits can be calculated between the time of joining and leaving the organization. As per article 84 of saudi labor law an employee is entitled to the following end of service benefits in case of termination. Definitions and general provisions section one. If the worker ends the contract the employer shall settle all his entitlements within a period not exceeding two weeks.

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. 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. Keep in mind that there is no esb entitlement if an employee is terminated under article 80 of saudi labor law. 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.

As per the new changes in saudi labor law 2019 an employee can be fired without even receiving his end of service benefits esb in the following conditions. Saudi labour law 2 chapter i. Definitions article 1 this law shall be called the labor law. Article 81 of the saudi labor law provides 7 special scenarios under which an employee can resign without any notice and still claim the full end of service benefits.

These are considered as the major articles when calculating the end services benefits in saudi arabia. Full salary after the first 5 years for each year served. 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. In case of resignation by employee.

You are resigning being terminated or end of the contract.