Can I Resign Within My Contract According to Saudi Labor Law?

Resigning from a job can be a complex process, especially in Saudi Arabia, where labor laws are specific about employment contracts. This guide will help you understand your rights regarding resignation under Saudi labor law, whether you’re working under a fixed-term or indefinite contract.

Types of Contracts

In Saudi Arabia, there are two main types of employment contracts:

1. Fixed-Term Contract: This contract has a specific end date.
2. Indefinite Contract: This contract does not have a set end date and continues until either party decides to terminate it.

Every employee, whether Saudi or expatriate, typically signs a fixed-term contract at the beginning of their employment. For Saudi employees, a fixed-term contract can transition into an indefinite contract over time. However, expatriate employees remain under a fixed-term contract as per Article 37 of Saudi Labor Law.

Resigning from a Fixed-Term Contract

At the End of the Contract:
You can resign at the end of your fixed-term contract by providing sufficient notice. Article 74 of Saudi Labor Law specifies the required notice period, which is usually 30 days.

What Happens if Your Contract Expires?
The expiration date is usually clearly stated in your contract. However, if your contract includes a renewal clause, it will be renewed for the specified period as per Article 55 (2) of Saudi Labor Law. If there’s no renewal clause, the following applies:

• For Non-Saudis: Your contract will automatically renew until your iqama (residence permit) expires.
• For Saudis: If your employer does not terminate your employment, your contract will convert to an indefinite contract.

During the Contract Period:
If you want to resign before the end of your fixed-term contract, ensure that your employer agrees. According to Article 77 of Saudi Labor Law, your employer has the right to reject your resignation or request compensation. Therefore, consider whether the compensation outweighs the benefits of a new job offer.

Resigning from an Indefinite Contract

For employees on an indefinite contract, you must provide a 60-day notice before resigning. This is outlined in Article 75 of Saudi Labor Law.

Penalty Compensation:
If you resign under an indefinite contract, your employer may request penalty compensation, according to Article 77 of Saudi Labor Law. Remember that expatriates cannot have indefinite contracts under Article 37.

Conditions for Indefinite Contracts

For Saudi employees, a fixed-term contract can become an indefinite contract under two conditions:

1. If there is no renewal clause in the fixed-term contract, and the employer does not terminate the employee at the end of the contract.
2. If a fixed-term contract is renewed three consecutive times or if the employee has served for four years as per Article 55 (2).

How to Resign via Qiwa

To resign, you may need to process your resignation through the Qiwa platform, which is the official online labor portal in Saudi Arabia. Follow these steps to ensure a smooth resignation:

1. Log into Qiwa: Create an account if you don’t already have one.
2. Complete the Resignation Form: Fill out the necessary details about your resignation.
3. Submit Your Resignation: Follow the prompts to submit your resignation through the platform.
4. Confirm with Your Employer: Make sure to communicate your resignation to your employer to avoid any misunderstandings.

FAQs

1. What types of employment contracts are available in Saudi Arabia?
There are two main types: fixed-term contracts, which have a specified end date, and indefinite contracts, which continue indefinitely until terminated.

2. How much notice do I need to give when resigning from a fixed-term contract?
You typically need to give a 30-day notice at the end of your fixed-term contract.

3. Can my employer reject my resignation?
Yes, your employer can reject your resignation if you attempt to resign during a fixed-term contract before its completion.

4. What happens if I resign from an indefinite contract?
You must provide a 60-day notice, and your employer may request penalty compensation upon your resignation.

5. How can I process my resignation?
You can use the Qiwa platform to submit your resignation. Ensure to inform your employer to avoid any confusion.

6. Can a fixed-term contract become an indefinite contract?
Yes, for Saudi employees, it can become indefinite if there is no renewal clause and the employer does not terminate the employee at the end of the contract.

7. What do I need to prepare for my exit?
Before leaving, ensure you have your exit visa and written confirmation of your final settlement, including any outstanding payments or benefits.

Conclusion

Resigning from your job in Saudi Arabia requires a clear understanding of the labor laws that apply to your contract. By following the guidelines outlined in this post and using the Qiwa platform for processing your resignation, you can navigate this process effectively. If you have any doubts, consider seeking legal advice to protect your rights and ensure a smooth transition.