Over the years, the Kingdom of Saudi Arabia has consistently focused on developing its legal and regulatory laws to keep pace with rapid economic and social changes. Among the most prominent of these laws is the Saudi Labor Law, which has received special attention. This law serves as the framework governing the relationship between employers and their employees, aiming to achieve a balance of rights and obligations, ensure a fair and motivating work environment, enhance productivity, and promote professional stability. As part of the Kingdom's ongoing efforts to improve the work environment and attract skilled talent, numerous amendments have been introduced to the Saudi Labor Law to enhance employees' rights and provide the necessary guarantees for them, one of the significant amendments introduced is granting employees the right to submit a resignation request. This right is governed by a set of regulatory provisions designed to protect the rights of both employees and employers alike. This approach reflects the Kingdom's ambitious vision to create a flexible and balanced work environment that promotes relationships based on mutual respect and transparency.

By introducing such amendments to the labor law, it aims to standardize resignation procedures and ensure that they are followed in a manner that guarantees the rights of both parties and helps reduce labor disputes that may arise from sudden or unregulated resignations. Granting employees this right reflects the Kingdom's commitment to implementing international labor standards and promoting professional freedoms, which contributes to increasing employee satisfaction and enhancing competitiveness in the Saudi labor market. It is worth noting that these developments come within the context of Saudi Vision 2030, which aims to enhance efficiency in the labor market and provide best regulatory practices, making the Kingdom an attractive destination for investment and human capital. This positively impacts the national economy and strengthens the sustainability of the business sector. Therefore, in this article, we will delve into everything related to resignation under the Saudi Labor Law.

Resignation in the Saudi Labor Law?

Resignation: “A written disclosure by an employee, under no coercion, expressing their desire to unconditionally terminate a fixed-term employment contract with the acceptance of the employer”. In other words, resignation can be described as a written request submitted by the employee to their line manager, expressing their intention to terminate their employment contract. Moreover, under the latest amendments to the Saudi Labor Law, submitting a resignation request has now been formally recognized as one of the valid circumstances leading to the termination of an employment contract in Saudi Arabia. Are you facing an issue with your resignation? Dr. Fahad Alrefaei & Partners Consulting & Law Firm
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What are the regulations for accepting a resignation request in the Saudi Labor Law?

The submitted resignation request shall be deemed accepted if 30 days have passed without a response from the employer. If necessary for the interests of the work, the employer may delay accepting the resignation for no more than 60 days, provided a written, reasoned explanation is given to the employee. The postponement must be decided before the initial 30-day period expires. The postponement period is calculated from the date the explanation is provided to the employee. It is further noted that a resignation request shall not specify a deferred date for its implementation.

It is also important to note that an employee wishing to terminate an indefinite-term employment contract for a just cause shall provide written notice to the employer at least 30 days prior to the termination date. If the employee fails to comply with the specified notice period, the employee shall pay the employer an amount equivalent to the employee's wages for the notice period, unless the parties have agreed to a longer notice period.

It is also noted that if the contract does not stipulate a specific compensation for the employee’s termination of the contract by resignation without a just cause, the Affected party shall be entitled to compensation determined as follows:

• Fifteen days' wages for each year of the employee's service, if the contract is an indefinite-term contract.
• Wages for the remaining period of the contract if the contract is a fixed-term contract.
• The compensation shall not be less than the employee's wages for a period of two months.

What is the effect of accepting a resignation request on the employment contract?

The employment contract shall be terminated upon the employer's acceptance of the resignation, or after the expiration of the thirty-day period without a response from the employer, or upon the completion of the acceptance deferral period if required by the interests of the work.

The employment contract shall remain in force during the period of the resignation request, both parties are obligated to fulfill all the obligations arising therefrom during this period.

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Our experience in labor resignation cases enables us to assist you in understanding your legal rights and obligations, and to provide the necessary legal support for resolving disputes arising from resignation in a fair and prompt manner.

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Can an Employee Rescind a Resignation?

The employee has the right to rescind the resignation request within a period not exceeding seven days from the date of submission; unless the resignation has been accepted by the employer before the rescission.

What are the implications of accepting a resignation?

If the employment relationship ends, the employer shall pay the employee an end-of-service gratuity based on the duration of service. The gratuity shall be calculated as half a month's wage for each of the first five years of service, and one month's wage for each year thereafter. The last wage received shall be used as the basis for calculating the gratuity. The employee shall also be entitled to a gratuity for any fraction of a year, proportional to the period of service during that period.

An employee whose contract is terminated due to resignation is entitled to all rights stipulated by the Saudi Labor Law. The Law states that if the employment relationship ends due to the employee's resignation, the employee is entitled to one-third of the end-of-service gratuity for a continuous service period of not less than two years and not exceeding five years. The employee is entitled to two-thirds of the gratuity if the service period exceeds five years but does not reach ten years, and the employee is entitled to the full gratuity if the service period reaches ten years or more.

Furthermore, the employee is entitled to the full end-of-service gratuity if they terminate their employment due to force majeure circumstances beyond their control. Additionally, a female employee is entitled to the full gratuity if she terminates her contract within six months of her marriage or three months of giving birth.

Does an employee have the right to leave work without notice while retaining all their statutory rights?

An employee has the right to resign without notice while retaining all their statutory rights in any of the following circumstances:

• If the employer fails to fulfill his essential contractual or statutory obligations towards the employee
• If the employer or his representative resorts to fraud at the time of contracting with respect to the work conditions and circumstances.
• If the employer assigns the employee, without his consent, to perform a work that is substantially different from the agreed-upon work, or if the employee is assigned work that is substantially different from the agreed-upon work without their written consent, except in cases of necessity arising from unforeseen circumstances for a period exceeding thirty days in a year
• If the employer, a family member or the manager in charge commits a violent assault or an immoral act against the employee or any of his family members
• If the treatment by the employer or the manager in-charge is characterized by cruelty, injustice or insult.
• If there exists in the workplace a serious hazard threatening the employee's health or safety, and the employer is aware of this risk but has failed to take measures indicating its removal.
• If the employer or his representative, through his actions and particularly his unjust treatment or violation of the terms of the contract, has caused the employee to appear as the party terminating the contract. In conclusion, there is no doubt that Saudi Arabia's interest in developing the labor law reflects its constant commitment to improving the working environment and promoting workers' rights, so one of the most significant recent developments in the labor law is the organization of resignation procedures, and this is a significant step towards creating a balanced and fair work environment that respects the rights of both employees and employer. Establishing clear and flexible guidelines for resignation requests helps strike a balance between the interests of both parties in the employment relationship in Saudi Arabia, and this ensures the employee's right to terminate the employment contract when needed, while taking into account his obligations to the employer. This is particularly important in fixed-term contracts, as this balance undoubtedly contributes to reducing labor disputes and provides a legal framework that guarantees the rights of all parties, positively impacting the stability of the Saudi Arabian labor market. Please Find: Legal Consultations Role in Avoiding the Legal Risks of Individuals and Companies

What labor cases are included in the services provided by Alrefaei & Partners Consulting & Law Firm?

At Alrefaei & Partners Consulting & Law Firm, we provide legal services across a wide range of labor cases, including:

• Employment Contracts Drafting and reviewing employment contracts, and resolving disputes related to the terms of the contract.
• Wages and entitlements Claiming overdue or unpaid wages, calculating End of Service Gratuity, and other compensations.
• Working hours and leaves Ensuring compliance with legal working hours and entitled leave, and seeking compensation for any violations.
• Arbitrary dismissal Defending rights in cases of arbitrary dismissal and claiming appropriate compensation.
• work injury Claiming compensation for injuries occurring during work and providing legal support in matters related to social insurance procedures.
• Collective disputes Representing employees in collective disputes with employers and negotiating collective agreements.

How can we help you at Alrefaei & Partners Consulting & Law Firm?

We provide a diverse range of legal services, including:

• Legal Consultation: Providing comprehensive legal advice on all aspects of the Saudi Labor Law.
• Drafting legal memorandums Preparing the necessary legal memorandums to be submitted to courts or government authorities.
• Pleading in courts: Representation of you in all stages of litigation before labor courts.
• Conciliation and reconciliation: Striving to resolve disputes in an amicable manner by means of conciliation and reconciliation
• Appeals and challenges Submitting appeals or challenges against judicial rulings issued in labor cases.

Why choose Alrefaei & Partners Consulting & Law Firm?

Extensive Expertise: We have extensive expertise in Saudi labor law, which ensures you receive the best legal representation.

A deep understanding of the law: We are fully aware of the latest developments in labor legislation.

professionalism: We are committed to the highest standards of professionalism and confidentiality in handling all cases.

Client-focused. We prioritize your interests and work diligently to achieve the best results for you.

If you are facing ant legal issues related to your work, please contact Dr. Fahad Alrefaei & Partners Consulting & Law Firm via the following communication channels we are ready to assist you in protecting your rights:

• Our number: 920012753
• E-mail: [email protected]
• Via: Seeking a Legal Consultation