Resigning Within a Contract in Saudi Arabia – What Every Expat Needs to Know (2025 Guide)
If you’re working in Saudi Arabia and considering resigning before your employment contract ends, you must understand the legal consequences. Whether you're under a fixed-term or indefinite contract, Saudi Labor Law clearly defines your rights and responsibilities as an employee. In this guide, we’ll explain the rules around resignation, required notice periods, financial penalties, and how to protect yourself during the process.
📃 Understanding Your Contract Type
The first step in evaluating your resignation options is identifying your contract type. In Saudi Arabia, employment contracts generally fall under two categories:
- Fixed-Term Contracts: Have a specified end date.
- Indefinite Contracts: Have no specified end date and continue until either party ends the relationship with proper notice.
Your rights during resignation depend heavily on which contract type you are under. Review your contract in the QIWA platform to confirm your status.
🔍 What the Saudi Labor Law Says About Resignation
🧾 Article 75 – Notice for Indefinite Contracts
According to Article 75, an employee under an indefinite contract must provide a written notice before resignation. The standard notice period is:
- 30 days for non-monthly workers (e.g., daily wage labor)
- 60 days for monthly-paid employees
If you fail to serve the full notice period, the employer can legally deduct the remaining days from your final settlement or even ask for equivalent compensation.
⚖️ Article 77 – Compensation for Contract Breach
This article allows either party to terminate the contract without a valid reason as long as they provide compensation:
- The amount can be either the remaining salary in the contract or an agreed penalty stated in the contract, whichever is less.
- If the contract has no clause, the default compensation is 15 days’ salary per completed year of service.
🚨 Article 81 – Resignation Without Penalty
This powerful article protects employees who resign due to employer violations. You can leave immediately—without notice or financial penalty—if any of the following occurs:
- The employer fails to pay salaries regularly.
- You experience verbal, physical, or sexual abuse at the workplace.
- The work environment puts your health and safety at risk.
- You were misled during recruitment (false job promises, salary lies, etc.).
Important: Always gather evidence (screenshots, bank statements, emails, witness statements) if you plan to resign under Article 81.
📋 How to Resign Properly in Saudi Arabia
Follow these legal and professional steps when resigning within your contract:
- Check Your Contract: Log into QIWA and confirm whether it’s fixed-term or indefinite. Look for any exit clause or penalty clause.
- Prepare a Resignation Letter: Use professional language and include key information like your position, last working day, and notice period.
- Serve Notice Period: Unless resigning under Article 81, you must serve your 30/60-day notice as required.
- Get a Clearance: Ask your employer to provide a clearance letter, which includes your final salary, leave encashment, and End of Service Benefits.
- Keep Records: Always keep copies of resignation letters, email conversations, and your contract.
✉️ Sample Resignation Letter
To: HR Manager
Subject: Formal Resignation Notice
Dear [Manager’s Name],
I would like to formally resign from my position as [Job Title] at [Company Name], effective [Last Working Date]. This notice is being submitted in accordance with Article 75 of the Saudi Labor Law, with the required 60-day notice period.
Please consider this my official notice. I am committed to assisting during the transition and ensuring a smooth handover.
Sincerely,
[Your Full Name]
Iqama No: [Your Iqama Number]
❓ FAQ – Resignation Under Contract in Saudi Arabia
Can my employer reject my resignation?
No. As long as you follow the law and serve your notice period, your employer cannot legally reject a resignation.
What happens if I don’t serve the notice period?
Your employer may deduct that amount from your final settlement or take legal action. It’s always better to serve the required notice unless Article 81 applies.
Do I get End of Service Benefits if I resign?
Yes, if you have completed 2 years or more. Partial benefits apply between 2–5 years. After 5 years, full benefits are usually given based on your salary and tenure.
Can I resign during probation?
Yes. You can resign during your probation period (usually 90–180 days) with minimal or no penalty, depending on the contract terms.
🔚 Final Thoughts
Resigning within a contract in Saudi Arabia requires careful planning. Knowing your rights under Articles 75, 77, and 81 can protect you from legal and financial trouble. Always submit your resignation in writing, follow the legal notice period, and keep all records for your protection.
If you're facing contract abuse or unpaid salaries, Article 81 gives you the right to resign without penalty. For further help, contact the Saudi Ministry of Human Resources (MHRSD).
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