Saudi Arabia
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- Capital City
Riyadh
- Currency
Saudi riyal (﷼, SAR)
- Languages
Arabic
- Population size
34,218,169
Employment termination in Saudi Arabia
Termination process
Unless the contract includes specific compensation for the termination by either party for an invalid reason, the party affected by termination shall be entitled to compensation as follows: 1. For indefinite-term contracts: an amount equivalent to fifteen-day wage for each year of the worker’s employment. 2. For fixed-term contracts: the wage for the remainder of the contract term. The compensation referred to in paragraphs (1) and (2) above shall not be less than the worker’s wage for two months. Additionally, upon the end of the employment relation, the employer shall pay the worker an end-of-service award equivalent to the amount of half-month wage for each of the first five years and a one-month wage for each of the years worked thereafter.
Notice period
Notice periods range from 30 days for fixed-term contracts, to 60 days for indefinite-term contracts.
Severance pay
Unless the contract includes specific compensation for the termination by either party for an invalid reason, the party affected by termination shall be entitled to compensation as follows:
1. For indefinite-term contracts: an amount equivalent to fifteen-day wage for each year of the worker’s employment.
2. For fixed-term contracts: the wage for the remainder of the contract term.
The compensation referred to in paragraphs (1) and (2) above shall not be less than the worker’s wage for two months. Additionally, upon the end of the employment relation, the employer shall pay the worker an end-of-service award equivalent to the amount of half-month wage for each of the first five years and a one-month wage for each of the years worked thereafter.
Probation periods
Probation periods are typically limited to 90 days but can last for up to 180 days with the consent of both parties.