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Saudi Labor Law End of Service Benefits

Byإباء شحودUpdated25 February 2025 - 12:28pm

This service allows you to learn about Saudi labor law end of service benefits, as shown below:

Employer must pay end-of-service benefits at the end of the employment relationship.
Benefits are based on the last wage received by the worker.
For the first five years, half a month’s wage is given per year.
After five years, one month’s wage is given per additional year.
If the worker resigns after 2–5 years, they are entitled to one-third of the benefits.
If the worker resigns after 5–10 years, they are entitled to two-thirds of the benefits.
If the worker resigns after 10 years or more, they are entitled to full benefits.
Full benefits are paid if the worker leaves due to force majeure.
Women are entitled to full benefits if they resign within six months of marriage or three months after childbirth.
Employers must pay the wages and settle rights within a week after the end of the contractual relationship.
If the worker terminates the contract, the employer must settle rights within two weeks.

End of Service Conditions in Saudi Labor Law

Here are the conditions for the worker to be eligible to benefit from the end of service law:

The worker’s service must be terminated according to the contractual relationship between the worker and employer.
The worker must have served at least two consecutive years to be entitled to end-of-service benefits.
In case of marriage or childbirth, women must leave the job within the specified periods to be eligible for the full benefits.
The worker must not resign in violation of the labor contract terms.
The worker is entitled to full benefits if leaving due to force majeure circumstances.

Cases of Non-Entitlement to End of Service Benefits

You can check the cases where the worker loses the right for the end of service law benefits, as follows:

If the worker assaults the employer, supervisor, or any colleagues at work during or because of work.
If the worker fails to fulfill their obligations under the employment contract.
If the worker engages in acts that violate trust or commit acts of dishonesty.
If the worker causes financial damage to the employer through misconduct or negligence.
If the worker is found to have used forgery to obtain the employment contract.
If the worker is in a probation period and fails to meet the required standards.
If the worker is absent for more than 30 days without valid reasons in a year or more than 15 consecutive days, after receiving a written warning.
If the worker exploits their position for personal gain.
If the worker discloses confidential work-related information.

Saudi Labor Law End of Service pdf

You can download the Saudi labor law end of service in pdf format, by following these simple steps:

Click on Saudi Labor Law End of Service pdf file “from here“.
Press on “Save” from the menu on the upper side.
Select the file destination on your device.
Hit the “Save” option.

Questions & Answers

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

Yes, the worker is entitled to end-of-service benefits depending on their years of service. If they have worked for 2-5 years, they are entitled to one-third of the benefits. If they have worked for 5-10 years, they are entitled to two-thirds of the benefits. After 10 years of service, the worker is entitled to full benefits.

Are commissions and sales amounts included in end-of-service benefits?

It may be agreed that commission amounts and percentages on the sales price will not be included in the wage on which the end-of-service benefits are calculated.

How soon must the employer settle the worker's rights after the end of service?

The employer must settle the worker’s rights and pay their wages within one week after the end of the employment relationship.

Can a worker claim end-of-service benefits if they were absent without valid reason?

No, a worker who is absent for more than 30 days in a year or more than 15 consecutive days without valid reasons after receiving a written warning is not entitled to end-of-service benefits.

Is the woman entitled to end-of-service benefits if she leaves her job after marriage or childbirth?

A woman is entitled to full end-of-service benefits if she leaves her job within six months from the date of her marriage or three months from the date of her childbirth.