End of Service Benefits-KSA

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Women and End of Service Benefits

The female worker shall be entitled to the full end-of-service benefits


if she terminates the contract within six months from the date of her
marriage contract or three months from the date of her delivery.
Article (87) of the Labor Law

How are Rights Filtered?

1
If the worker’s service ends, the employer shall pay his/her wages
and clear his/her rights within a week - at most - from the date the End-Of-Service Benefits
contractual relationship ends.
2
If the worker is the one who terminated the contract, the employer As Per Regulations
shall completely clear his rights within a period not exceeding two
weeks.
The employer may deduct any debt owed to him/her by reason of the
work from the amounts owed to the worker.

Article (88) of the Labor Law

Force Majeure in the Labor Law


Ministerial Decree No. (70273) was issued on 4/11/1440 H,
adding a new article to the executive regulations of the
labor law under No. (41), which states the following:
The government has taken measures regarding a situation or circumstance
that requires reducing working hours, or precautionary measures that
limit the aggravation of that situation, including the description of force
majeure, so the employer agrees with the worker, within the following six
months, to start taking those actions, based on any of the following:

Reducing the worker’s wage in proportion to the


number of actual working hours.

Granting a leave to the worker counted from his/her


annual leave days.

Granting an exceptional leave to the worker.

It shall not be lawful to terminate the work contract


after that if it is proven that the employer has benefited
from any aid from the government to face this situation.

This shall not prejudice the right of the worker to


terminate the work contract.
End-Of-Service Benefits If The Labor Relationship Ends Naturally, The End-Of-
The end-of-service benefits is one of the most important rights of the Service Benefits Will Be As Follows:
worker, which the employer shall pay to the worker upon the expiration of If the labor relationship ends, the employer shall pay the worker end-of-
the work contract, whether the worker is Saudi or non-Saudi. service benefits for his/her period of service, calculated on the basis of a
half-month’s wage for each of the first five years.

End-Of-Service Benefits Calculator


The end-of-service benefits is one of the rights of the
1
worker on the employer in the event of the end of the
work contract. Therefore, the method of calculating the He/She shall get The final wage shall The worker shall be
end-of-service benefits, the due date of the benefits, a month’s wage be the basis for entitled to the end-
and the calculation method according to the labor law for each of the calculating the end- of-service benefits for
have been facilitated. following years. of-service benefits. the parts of the year in
You can learn more about the end-of-service benefits proportion to what he/
calculator through the Labor Education website. she spent on work.
Article (84) of the Labor Law
Please, visit the official website
‫نظام العمل‬ of labor education:
‫ من‬51 :‫المادة‬

laboreducation.hrsd.gov.sa If The Worker Resigns, Does He/She Have the Right To


Receive the End-Of-Service Benefits?
If the termination of the work relationship is due to the worker’s
2 resignation, he/she shall be entitled in this case to one third of the
About End-Of-Service Benefits end-of-service benefits after service of no less than two years in a
The end-of-service benefits is the obligation and commitment row, and not more than 5 years.
of the source (the labor law), according to which the employer, A worker shall be entitled to two-thirds of the end-of-service
+5 benefits if his service period exceeds 5 years in a row, and does not
according to a regulation stipulated by the labor law, shall be
required to hand over a sum in light of the period of his/her reach 10 years.
service and the last wage he/she received. This commitment The worker shall be entitled to the full end-of-service benefits if his
+10 service period reaches ten years or more.
is stipulated in all labor legislations that have labor regulations
and membership in international and Arab labor organizations. Article (85) of the Labor Law
The end-of-service benefits is a security for the future of the
worker after the end of his/her work, and his/her protection Are Commissions and Sales Added to the End-Of-Service
from the risk of unemployment and inability to work, and when Benefits?
for his/her old age, so that such benefits can help him/her in the
future and the life of his/her family members. It may be agreed not to calculate the wage on the basis of
The end-of-service benefits is disbursed to a worker at the end which the end-of-service is settled for all or part of the
of his/her service, as it is called the end-of-service benefits. amounts of commissions, and the percentages of the sales
The end-of-service benefits is not disbursed except for the from the elements of the wage paid to the worker and are
worker’s right to the-end-of service, of which the worker may subject to decrease and increase.
not be deprived under any agreement between the worker and Article (86) of the Labor Law
the employer.
Some companies, institutions, and individuals have disposed of
the responsibility for the end-of-service benefits and disbursed In The Event That a Worker Resigns as a Result of
such end-of-service benefits to him/her every year so that such Circumstances and Force Majeure that Forced Him/Her
end-of-service benefits would not overburden the employer; to Resign,
this practice shall not be permissible and contradicts the end-
of-service benefits law. DOES HE/SHE HAVE THE RIGHT TO THE END-OF-SERVICE BENEFITS?
Any agreement between the worker and the employer that A worker shall be entitled to the full end-of-service benefits
leads to depriving the worker of the end-of-service benefits in the event that the worker left or quit the job as a result of
by waiving it or diminishing it is contrary to the labor law, so his force majeure beyond his/her control.
right to the end-of-service benefits may be waived. Article (87) of the Labor Law

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