Employment Contract Termination: How to Secure Your End-of-Service Award

Terminating an employment contract is a critical turning point that raises significant concerns about an employee's financial and professional future.

This moment demands careful legal awareness, as any unintentional mistake could cost you substantial sums of money accumulated over years of hard work.

Many employees lose a significant portion of their financial rights due to ignorance of the regulations or by hastily signing ill-considered documents under management pressure.

Therefore, the Saudi Labor Law provides robust legal protections to ensure a fair and transparent settlement of employment relationships that satisfies all parties.

Our goal at Saradq Al Hikma Office is to educate you to avoid any exploitation and ensure you leave the establishment with all your legal entitlements in full.

How to protect your rights when terminating an employment contract?

Whether the termination is due to resignation, the expiration of the agreed-upon term, or even unfair dismissal, there are golden rules to follow:

• Don't rush: Never sign the final settlement agreement until you have reviewed your bank statement and verified that the funds have been deposited.

• Written Documentation: Ensure that all notices, warnings, and termination letters are in writing and officially documented to guarantee the validity of the procedures.

• Legal Advice: Contact a specialized labor lawyer immediately if you suspect any manipulation of figures or unjustified deductions from your salary.

End-of-Service Gratuity Calculation Mechanisms and Details

The end-of-service gratuity is the most important financial right that an employee awaits to secure their future. It is calculated accurately as follows:

• First Five Years: You are entitled to half a month's salary for each of the first five years of actual service with the establishment.

• Subsequent Years: You are entitled to a full month's salary for each year following the first five years, thus doubling the value of your gratuity the longer your service.

• Calculation Basis: The gratuity is calculated exclusively based on the final actual salary, which includes the basic salary plus all fixed allowances.

Electronic Labor Litigation Makes Recovering Your Rights Easier

Thanks to the Ministry of Justice's digital transformation, recovering your labor rights is no longer a lengthy process.

Our legal team in Jeddah represents clients across the Kingdom, including Riyadh, Mecca, and Dammam.

We can file labor claims, attend hearings, and litigate electronically through the Najiz platform, saving clients the time and expense of travel.

Frequently Asked Questions about Terminating an Employment Contract

• Can I hire Saradq Al Hikma Law Firm if my company is in Riyadh and I reside there?

Yes, absolutely. The firm provides services to clients in Riyadh, Jeddah, and all cities across the Kingdom. We represent you and litigate in labor courts electronically with complete professionalism.

• When is my employer entitled to withhold my end-of-service gratuity?

They are only entitled to do so in very specific cases stipulated in Article 80 of the Labor Law (such as committing dishonorable conduct or disclosing company secrets), and this requires conclusive proof.

• Am I entitled to a return ticket to my country upon resignation?

If you resign voluntarily, your employer is not responsible for the return ticket, unless the internal employment contract stipulates otherwise.