Posted by : Aahil Shaik Tuesday, January 11, 2022

Clarification from Ministry of Human Resources on termination of Employment contracts in Saudi Arabia

The Ministry of Human Resources and Social Development in Saudi Arabia renewed the reminder of cases of termination of the work contract. The ministry said that the cases of contract termination includes the following.

* Agreement of the two parties to terminate, provided that the worker’s consent is in writing, or if the period specified in the contract has expired, unless the contract has been expressly renewed in accordance with the provisions of the labor law, then it will continue for its term. Similar : Amicable settlement in Riyadh return 4 million riyals to a worker from contracting company

* According to the labor ministry, the termination is based on the will of one of the parties in the contracts of indefinite duration, or the worker has reached the retirement age as per the provisions of the social insurance system, unless the two parties agree to continue working, after this age.

* Force majeure, permanent closure of the company, termination of the task in which the worker works, unless otherwise agreed upon, and any other case provided for by another law, and if the contract is for a specific work and it ends with the completion of the agreed work. Recommend : One of the right of the worker in Saudi Arabia is to medically insured from the employer

* If the contract is for an indefinite period, then either of its parties may terminate it based on a legitimate reason that must be explained by a notice sent to the other party in writing before the termination period specified in the contract, given that it is not less than 60 days, if the worker’s salary is Payable monthly, and not less than 30 days for others.

* Failure of the party who terminated the indefinite contract to see the period specified for the notice and is obligated to pay the other party for the notice period an amount equal to the salaries of the worker for the same period, unless the two parties agree on more than that. See Also : Saudi Moroor message to neglected and damaged vehicle owners

Clarification from HR Ministry on termination of Employment contracts in Saudi Arabia

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