Working contracts between the employer and employee often get terminated due to a variety of reasons. Whether you are an employee getting terminated or an employer terminating someone, it is important you fully know and understand the termination policy as per the labour law of the kingdom of Saudi Arabia.
What are the Reasons behind Termination of contracts?
- If you are an employer then you are authorized to terminate any employee in case of either of these cases mentioned below:
- Failure to perform their jobs, official order or any safety concern
- Adopting a behaviour of misconduct with the employer and colleagues
- Obtaining the job by unfair means
- Disclosure of any confidential and work related documents
- Absence from office for consecutive ten days or more than twenty days in a year
- Termination of employment contracts can not only be practiced by employers, but employees as well. An employee can request for a termination in case of the following happenings:
- Failure of the company to provide promised statutory service
- Unfair and false details about workplace environment, job and other conditions
- Attempted assault or act against the employee or any of his associates
- Failure of the company to remove any safety hazards present in the working area
- Makes the employee appear as the one terminating the contract for their unjust activities
- Apart from these instances where either party proposes termination, the employment contract is immediately terminated in the following cases:
- Request for termination by either party during probation period
- In case the employee does not clear the medical examination
- When the expiry date, as mentioned on the contract arrives
- Mutual consent between both parties
- In case the worker has reached their retiring age
Article 77 of Saudi Labor Law
- Finally, if either party terminates the contract without mentioning any reason or a reason beyond the aforementioned ones, the terminating party must pay and compensate the other party in a fair and just manner.
Article 74 of Saudi Labor Law
For every employer and employee, it is significant you know and practise your contract termination rights as stated in the official labour law by the government of Saudi Arabia. We hope that after reading our article, you learnt about termination in KSA in detail and now know in exactly what cases you can demand termination and compensation from your employee or employer.