My Life in Saudi

If you are working in Saudi Arabia, understanding the rules surrounding employment contract renewal, resignation, and termination is essential. These regulations not only protect your rights as a worker but also help maintain a professional and legal relationship between employer and employee. In this detailed guide, we will explore: How employment contracts are renewed in Saudi Arabia What the law says about resignation The right way to terminate a contract Legal consequences and best practices 📝 Types of Employment Contracts in Saudi Arabia Before diving into renewals and resignations, it’s important to know the two main types of contracts under Saudi Labor Law: Fixed-Term Contract (Limited) Has a specific start and end date. Automatically ends unless renewed. Unlimited Contract (Indefinite) Open-ended and continues until either party decides to terminate it with proper notice. 🔄 Renewal of Employment Contract ✅ Automatic Renewal In many cases, a fixed-term c...

Introduction In Saudi Arabia, both employers and employees are protected by a well-defined legal framework under the Saudi Labor Law. One of the most important but often misunderstood provisions is Article 74 , which outlines the legitimate reasons for terminating an employment contract without misconduct . Whether you're an expat worker or a Saudi national, it's essential to understand how this law affects your job security and what your rights and responsibilities are when a contract is ended by either party. This blog will explain Article 74 of the Saudi Labor Law in detail, clarify what each clause means, and offer practical advice for employees dealing with contract termination. 🔍 What is Article 74 of Saudi Labor Law? Article 74 describes the legal conditions under which an employment contract can be terminated lawfully without any party being at fault . In other words, it's not about breaking the rules or committing a violation—it’s about the contract reaching...

End‑of‑Service Benefits (ESB)—sometimes called gratuity or severance pay —are a mandatory lump‑sum payment every employer in Saudi Arabia must make to departing employees. Whether you are an expatriate or a Saudi national, understanding how ESB is calculated under Articles 84–87 of the Saudi Labor Law will help you plan your career moves, negotiate better packages, and ensure you leave a job with everything you are legally owed. 📌 Quick Facts About ESB Applies to all private‑sector workers —Saudi and expat alike. Paid in a lump sum on final settlement. Based on basic salary only , not allowances. Mandatory after two years of service (partial payouts may apply sooner). Governed by Articles 84–87 of Saudi Labor Law. 🧑‍⚖️ Who Is Eligible? Under Article 84 , ESB is due to any employee who: Completes at least two years of continuous service, or Leaves under special circums...