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وزارة الموارد البشرية والتنمية الاجتماعية

Saudi Labor Law End of Service Benefits

Byأمل إبراهيم Updated
Byأمل إبراهيم Updated

The end-of-service benefits is an obligation originating in the Labor Law under which the employer is obligated to hand over to the worker a sum of money according to a regulation specified by the Labor Law in light of the worker’s period of service and the last wage he received. This benefit is not paid except at the end of the worker’s service.

Saudi Labor Law End of Service Benefits

Below you can learn about Saudi Labor Law End of Service Benefits:

  • The employer must pay an end-of-service benefits upon the end of the employment relationship to the worker, a gratuity for his period of service calculated on the basis of half a month’s wage for each of the first five years and a month’s wage for each of the following years. The last wage is taken as the basis for calculating the Benefits.
  • If the employment relationship ends due to the worker’s resignation, in this case he is entitled to a third of the reward after service of not less than two consecutive years and not more than five years. He is entitled to two-thirds of the reward if the worker’s period of service exceeds five consecutive years and does not reach ten years. He is entitled to the full reward if the period of service exceeds ten years. The worker has served for ten consecutive years or more.
  • It may be agreed that all or some of the commission amounts and percentages on the sales price will not be included in the wage on which the end-of-service benefits is calculated.
  • The full end-of-service benefits is due if the worker leaves work as a result of force majeure.
  • A working woman is entitled to a full end-of-service benefits if she terminates the contract within six months from the date of her marriage or three months from the date of her birth.
  • If the worker’s service ends, the employer must pay his wages and liquidate his rights within a week at most from the date of the end of the contractual relationship.
  • If the worker terminates the contractual relationship, the employer must liquidate his rights within a period not exceeding two weeks.

Saudi Labor Law End of Service Benefits

See more: Saudi Labor Law Article 81: Resign Without Notice Period | New Labour Law in Saudi Arabia

Conditions for End of Service entitlement

Below you can learn about conditions for entitlement end of service benefit Saudi labor law:

  • Termination of the worker’s service according to the contractual relationship between the worker and the employer.
  • Working women marry or give birth.
  • The worker is forced to leave work as a result of force majeure.
  • When a worker resigns, his period of service at work must be no less than two consecutive years in order to obtain a percentage of the end-of-service benefits, according to the number of years of service.

Saudi Labor Law End of Service Benefits pdf

You can view everything related to end-of-service benefits in the Saudi Labor Law by downloading a PDF file through the link “from here” and then opening the file and viewing the information contained in the file.

conclusion

The end-of-service benefits is one of the worker’s rights from the employer upon the end of the contractual relationship, and the labor system requires the employer to pay it upon the end of the employment contract, whether the employment contract is of a fixed-term or indefinite-term.

Questions & Answers

Is the worker entitled to an end-of-service benefits upon resignation?

Yes, the worker is entitled to an end-of-service benefits upon resignation if his service period exceeds two consecutive years.

Are the amounts of commissions and sales added to the end-of-service benefits?

It may be agreed that the amounts of commissions and sales are not included in the wage on which the end-of-service benefits is calculated.

Is a worker who left work due to force majeure circumstances entitled to an end-of-service benefits?

Yes, the worker who left his job as a result of force majeure is entitled to an end-of-service benefits.

Is a woman who left work as a result of marriage entitled to an end-of-service benefits?

Yes, a woman is entitled to an end-of-service benefits if she leaves work within six months from the date of marriage.

Is a woman entitled to an end-of-service benefits if she leaves work after giving birth?

Yes, a woman is entitled to an end-of-service benefits if she leaves work within three months from the date of her birth.

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