The Saudi Labor Law regulates the employment relationship between employers and workers to create a fair and stable work environment. In the 2025 amendments, the law introduced detailed rules on resignations, including the definition, acceptance process, notice periods, and post-resignation entitlements. This article provides a full overview of the updated resignation rules under Saudi labor law.
What is Resignation under the Saudi Labor Law?
Article 2 defines resignation as:
"A written request submitted voluntarily by the employee, without coercion or conditions, to terminate a fixed-term employment contract, subject to the employer’s acceptance."
Submitting a resignation does not automatically end the contract. If the employee leaves immediately without employer’s approval, it is considered unlawful termination, which may forfeit some rights and expose the worker to liability.
Resignation Acceptance Period
According to Article 79:
- If 30 days pass without a response, the resignation is deemed accepted.
- The employer may postpone acceptance for up to 60 days with a written justification, provided the decision is issued within the first 30 days.
- The employee may withdraw the resignation within 7 days, unless it was already accepted.
Conditions for a Valid Resignation
- It must be written and unconditional.
- Both parties must continue fulfilling their obligations until the notice period ends.
- If the employer does not respond within 30 days, the resignation is automatically accepted.
Resignation under Indefinite Contracts (Article 75)
- If wages are paid monthly:
- Employees must give 30 days’ notice.
- Employers must give 60 days’ notice when terminating.
- If wages are paid non-monthly:
- Either party must give at least 30 days’ notice.
Note: Failure to observe the notice period obligates the breaching party to pay compensation equal to the worker’s wage for the notice duration (Article 76).
Resignation during Probation Period
- Either party may terminate the contract during probation (up to 90 days, extendable to 180 with written agreement).
- Probation must be clearly stated in the contract.
Lawful Grounds for Terminating Employment (Article 74)
- Expiry of the fixed-term contract.
- Written mutual agreement.
- Termination of an indefinite contract with valid reason and notice.
- Reaching retirement age.
- Force majeure or business closure.
- End of the activity or court judgment.
- Resignation.
Can the Employer Reject a Resignation?
- Fixed-term contracts: Yes, the employer may reject, and the employee may be liable for compensation.
- Indefinite contracts: No, provided the employee respects the notice period.
Employee Rights after Resignation
- Full payment of pending wages and benefits.
- End-of-service gratuity if eligible:
- One-third of reward: 2–5 years of service.
- Two-thirds of reward: 5–10 years of service.
- Full reward: 10+ years of service.
- Compensation for unused annual leave.
- A free certificate of employment without negative remarks.
Settlement of Dues
- If the resignation is from the employee: settlement within two weeks.
- If from the employer: settlement within one week.
Resignation Letter
A resignation letter is an official document expressing the employee’s intent to leave. It should include:
- Employee’s name and job title.
- Date of submission.
- Employer/company name.
- Clear statement of resignation.
- Appreciation note.
- Signature and date.
Conclusion
The new Saudi Labor Law (2025) has clarified resignation rules to protect both employers and employees. By respecting notice periods and legal requirements, both sides can ensure a fair and smooth termination process.
Protect your rights when resigning in Saudi Arabia! Check your entitlements, notice period, end-of-service benefits, and leave balance using the SNDK platform for accurate and easy calculations.
FAQ – Resignation Rules under the Saudi Labor Law 2025
1. What is resignation under the new Saudi Labor Law?
Resignation is a written request submitted voluntarily by an employee to terminate a fixed-term or indefinite employment contract. It must be accepted by the employer according to legal rules.
2. How long does it take for a resignation to be accepted?
- If the employer does not respond within 30 days, the resignation is automatically considered accepted.
- The employer can postpone acceptance for up to 60 days with written justification.
- The employee can withdraw the resignation within 7 days unless it has already been accepted.
3. What is the notice period for resignation?
- Indefinite contracts: 30 days if the salary is paid monthly.
- Failure to observe the notice period requires the breaching party to pay compensation equal to the worker’s wage for the notice period (Article 76).
4. Can an employee resign during the probation period?
Yes, either party may terminate the contract during probation (up to 90 days, extendable to 180 days with a written agreement).
5. What are the employee’s financial rights after resignation?
- All outstanding wages up to the contract end date.
- End-of-service benefits according to years of service (one-third, two-thirds, full).
- Compensation for unused annual leave.
- A free service certificate without negative remarks.
6. How can employees calculate their benefits?
Employees can use the SANDK Platform to calculate:
- End-of-service benefits.
- Unused leave balance.
- Notice period and any compensation.
All calculations comply with Saudi labor law.
7. When are entitlements paid after resignation?
- If the employee resigns: within 2 weeks.
- If the employer terminates the contract: within 1 week.
8. Can the employer refuse a resignation?
- Fixed-term contracts: yes, with the employee possibly liable for compensation if they resign early.
- Indefinite contracts: no, provided the employee respects the notice period.
9. What should a formal resignation letter include?
- Employee’s name and job title.
- Submission date.
- Employer or company name.
- Clear statement of resignation.
- Appreciation note.
- Signature and date.
10. Why is it important to follow legal resignation procedures?
Following legal requirements ensures both the employee and employer protect their rights, avoids disputes, and guarantees proper financial and professional entitlements.