SALEM AL SAHOOD(LL.B, LLM)’s Post

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Legal Counsel at Saudi Aramco

How will the new resignation rules impact employees and employers in the Kingdom of Saudi Arabia? Here are the new additions to the Saudi Labor Law regarding resignation: - The amendment defines resignation as the employee's written declaration of their desire to terminate a fixed-term employment contract without any conditions or reservations, nor requiring the employer's acceptance. - Resignation has been added as a legitimate reason for terminating the contractual relationship in Article 74. - An employee can terminate an indefinite-term employment contract for a legitimate reason by giving written notice to the employer at least 30 days prior to the termination date. - An employer can terminate an indefinite-term employment contract for a legitimate reason by giving written notice to the employee at least 60 days prior to the termination date. - A resignation request is considered accepted if the employer does not respond within 30 days. The employer may postpone acceptance for up to 60 days if work interests require it, with a reasoned, written explanation provided to the employee within 30 days of the resignation submission. - The employee can withdraw the resignation request within 7 days of submission, unless the employer has accepted it. - The employment contract ends with the resignation on the date of the employer's acceptance, the expiration of the 30-day period from submission, or the expiration of the employer's specified postponement period. - It is not permissible to specify a deferred date for resignation in the request. - The employment contract remains valid during the resignation period, and both parties must fulfill all obligations. - An employee whose contract is terminated by resignation is entitled to all rights under the Labor Law, such as severance pay, compensation for leave days, and other applicable benefits.

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