Dismissed in Saudi Arabia: Compensation and What You Are Owed

If your Saudi employer ends an indefinite contract without a valid reason, the Labour Law gives you compensation of 15 days' wage for each year of service, and at least 2 months' wage (Art. 77). On a fixed-term contract it is your wage for the rest of the term, with the same minimum.

The notice rules apply as well: 60 days' written notice if you are paid monthly, or pay for the notice instead (Arts. 75 and 76). You get the full end of service award, because the cuts in Art. 85 are for resignation. Everything is due within one week of the contract ending (Art. 88).

The award column is worked out by our KSA calculator for a monthly wage of SAR 10,000 and a contract ended by the employer. Enter your own dates and pay to get your figure.

Art. 77 applies when the reason for ending the contract is not valid. If you and your employer disagree about the reason, the dispute goes to HRSD friendly settlement and then the labour court.

• Notice. Since 19 February 2025, an employer ending an indefinite contract for a legitimate reason gives at least 60 days' written notice if you are paid monthly, and 30 days if you are not (Art. 75).
• Notice pay. If the notice is not observed, the employer pays your wage for the notice period (Art. 76).
• Award. Half a month's wage for each of the first five years and a month's wage for each year after, on your last wage, with part years in proportion (Art. 84). The one-third and two-thirds cuts in Art. 85 are for resignation.
• Payment. Within one week of the end of the contract (Art. 88).

More: notice period pay in Saudi Arabia and the KSA end of service guide.

• Probation. If the contract ends during probation, neither side gets compensation and there is no end of service award (Art. 54).
• Art. 80 cases. Art. 80 lists the cases where the employer may end the contract without notice or award; one of them is during probation. Read EOSB after a misconduct dismissal and ask HRSD if your employer relies on it.

If your employer pushes you to resign, Art. 81 lets you leave without notice and keep your statutory rights in listed cases, including when the employer makes you appear as the party ending the contract.

If your job is cut for business reasons, you are still owed notice or notice pay and the full end of service award, because the employer ended the contract. Whether Art. 77 compensation is also due depends on whether the reason counts as valid, so ask HRSD or raise it in a friendly settlement claim.

File for friendly settlement with HRSD, at the office for the city of your last working day. The service is free. If it fails, the case goes to the labour court within about 21 working days. Labour courts do not hear claims after 12 months from the end of the employment relationship, unless the court accepts your reason for the delay or the employer admits the right.

Steps: how to file a labour complaint in Saudi Arabia. Plan your dates with the leaving plan. Unemployment insurance (SANED) is for Saudi nationals only.