The Kingdom’s employment legislative framework is based on the twin pillars of the “Labour Law” (approved by Royal Decree M/51 in 2005, as amended) and the “Implementing Regulations” of the Labour Law. 1. A female worker who decides to resign 6 months before her date of marriage or 3 months before giving birth will be given full award end of service benefits. Article 2 The following terms and phrases, whenever mentioned in this Law, shall have the meanings expressed next to them, unless the context requires otherwise. Notice and Severance Rules in Saudi Arabia Keep in mind that there is no ESB entitlement if an employee is terminated under Article 80 of Saudi Labor Law. ESB for Domestic Workers is different from End of Service Benefit of the Saudi Labor Law where domestic workers are not entitled to ESB. For instance, an employee resigns after working for 7 years in a company receiving a total of SAR20,000 as his or her last salary, takes home an end of service benefit amounting to SAR60,003. It is ‘resignation’ if the employee does not want his or her contract to be renewed. You are kindly requested to calculate my end of service benefits (monthly salary KD 300). For instance, an employee resigns after working for 15 years in a company receives SAR10,000 as his or her last salary, and brings home an end of service benefit amounting to 125,000. 2. Under Saudi Arabian law, the employment relationship between employer and employee is governed comprehensively by the Labor and Workmen's Law (the Labor Law). End of Service Benefits, Saudi labor Law, ESB Calculator, KSA, Saudi Arabia, End of Service Calculation, How to calculate,ESB, Expatriates, Employer 1. End of Service benefits in Saudi according to Saudi Labor law is if the company gives a final exit or terminates and employee contract then as per Saudi Labor Law you’re entitled to get half of your monthly for first 5 year and 1 month salary for following years: 2. In case of failure to pay the ESB within 2 weeks, the employee has the right to file a case in the Saudi Labor Court. In labor law, there are five articles (84-88) dedicated only to end service benefits. We discuss about Saudi labor laws 2017. However, the employee who is granted a car would receive lesser cash than those who get all benefits in cash. (12) Partial Deletion 1. In figures, (SAR5,000 * 3) / 2 =  SAR7,500. Case 2: An employee who is terminated from an organization after completing a 5-year stay in the company receives a full entitlement and half salary for the first 5 years and full salary for the succeeding years as ESB award. 2. Labour law governs the employer-employee relations in the Kingdom. On termination of employment, employees in the UAE and the KSA are entitled to receive an EOSG provided that certain qualifying conditions are fulfilled. EOS does not include all or some of the commission, sales percentage, and similar wage components that are subject to increase and decrease. 01 March 2017. Domestic Workers End of Service Benefits. No End of Service Benefits. Following the new law passed by the Ministry of Labor, a domestic worker receives end of service benefits as well. That is, salary multiplied by 5 and divided by 2 plus salary multiplied to 4. Saudi Arabian latest Labor laws and amendments in case of leave, holidays, vacation of workers and employees. End of Service Benefit is based on the latest salary received by the employee. Other deductions are done according to the law. An employee who stays with the company for 10 years or more receives a full entitlement and a half salary for the first five years and a full salary for the succeeding years as an ESB award. Following the new law passed by the Ministry of Labor, a domestic worker receives end of service benefits as well. In figures, (SAR10,000 * 5/2) + (SAR10,000 * 10) =  SAR125,000. ESB for Domestic Workers is different from End of Service Benefit of the Saudi Labor Law where domestic workers are not entitled to ESB. There are instances when benefits are paid in kind, such as a car given to an employee in place of transportation and food allowance. Fails to fulfill contractual or statutory obligations, Resorts of fraud at the time of contracting with respect to work conditions and circumstances, Assigns the worker, without his consent, a work which is essentially different from the work agreed upon, Committing a violent assault or an immoral act against the worker or any of his family members, Subjects the worker to cruelty, injustice or insult, Failed to take measures to remove serious health or safety hazard at the workplace of which he was aware. For instance, an employee resigns after working for 3 years in a company, the last total paycheck received was SAR15,000. Saudi Arabia: Summary of Recent Labour and Employment Law Developments Apr 24 2020 In the past month, there have been several labour and employment law developments, chief among them: i) adding a new clause to the Labour Law; and ii) various measures have been put in place in order to tackle the impact resulting from COVID-19. No End of Service Benefits. Legal Advice in Saudi Arabia . The ministry shall set up a unified form or more for regulating of labor market, including job benefits, violations, fines and disciplinary actions related to the workers. It also stipulates the terms and conditions for entering, ending or terminating the work agreement. If an employee is resigned before the service of two years, Then he is not eligible for any kind of End of Service Benefits like ESB, percentage of Salary, Entitlement. These are benefits given to employees at the time they leave the company. The employer may deduct any work-related debt due to him or her from the worker’s entitlements. If a female worker ends her contract within six months from the date of her marriage or three months from the date of giving birth, she may be entitled to the full award. That is, the employee’s paycheck multiplied by half the salary of the entitlement (1/3 divided by 2 is 16.67%) multiplied by the number of years in the company. In early 2015, the Saudi Arabian Ministry of Labor announced an overhaul of the Labor Law that would include 38 amendments (the Amendments) to its statutory provisions. Another exception to the rule is when an employee resigns due to inability to work such instances as death, permanent mental or physical disability, a full award end of service benefits shall also be granted. Saudi Labour Law 2 Chapter I: Definitions and General Provisions Section One: Definitions Article 1 This law shall be called the Labor Law. Subscribe to get more insights like this. The ESB of an employee who does not complete an entire year is computed proportionally. For instance, an employee finished his or her job after 3 years in service and receives 5,000 as his or her last paycheck, gets SAR7,500. According to article 88 of Saudi Labor Law, an employer is obliged to pay end of service benefits within; 1 week in case of termination. Basic Information about the Work Contract Based on the Saudi Labor Law, here are the basics of an employment contract: Entering an Employment Contract The contract should be written in duplicates, one copy each for the employer and employee. On the other hand, it is classified as ‘termination’ if the employer is the one who denies contract extension. The severance award can be a substantial benefit for longer service employees. As an exception, the employee may be entitled to the full award if he or she leaves the work due to a force majeure outside of his or her control. The employer may dismiss the worker without notice for assaulting the employer/management: Termination of the contract by the worker without giving notice, if the employer/his representative. As per article 84 of Saudi Labor Law, an employee is entitled to the following end of service benefits in case of termination; 1/2 salary for the first 5 years. I was one of those terminated, I left the office and sought legal advice as I should have had almost 9 months notice according to my contract and Saudi Labor Law and my initial offer was just one months payment and goodbye! End Of Service Benefits Calculation as per Saudi Labor Law Published on December 11, 2014 December 11, 2014 • 59 Likes • 50 Comments ( News , Events , Labor education , Document library , Frequently asked questions , Labor advisor , End of service calculator ) You can search directly in labor education by starting by saying (search for ) and then search words example: (search for labor education) 3. It is assumed that employees have completed consecutive years in the organization. When an employee is terminated, two possible cases serve as a basis of the End of Service Benefit an employee may receive. The probation period should not exceed 3 months.If your employer asks to extend your probation period, do not accept his offer as this is against the law. Employees in the Kingdom of Saudi Arabia are entitled to End of Service Benefits (ESB). 2. End of Service benefits in KSA 2020 according to Saudi Labor law is if the company gives a final exit or terminates and employee contract then as per Saudi Labor Law you’re entitled to get half of your monthly for first 5 year and 1 month salary for following years: Further explanation End of Service Benefits in Saudi Arabia | Arab Expatriates.com iRemit. 2. 3. As per the new changes in Saudi Labor Law 2019 an employee can be fired without even receiving his End of Service Benefits (ESB) in the following conditions: End of Service Benefits in Saudi Labor Law for Resignation of Employee : 1. End of Service Benefits in Saudi Labor Law for Resignation of Employee : 1. These were mentioned in Article 80 and 81 of Saudi Labor Laws. During the coronavirus pandemic, the Ministry of Labor suspended Article 74 (5) of Saudi Labor Law for a period of 6 months starting from April 2020 to Oct 2020. Qatar Labour Law: end-of-service benefits. In figures, (SAR20,000 * 5/2)+(SAR20,000×4)= SAR130,000. How to Compute End of Service Benefits in Saudi Arabia, 19 Saudi Decency Law Violations and How Much Fines Offenders Pay, 8 Things I Learned While Living in Saudi Arabia, 11 Things Expats Discover When They Settle in Saudi Arabia, Saudi Employers Shower Filipina Helper With Gifts, Cash to Rebuild Her Home, List of Items Prohibited Items For Shipment to Saudi Arabia, Philippine Embassy Riyadh Outreach Schedule. The boundaries and limits of an end of contract can vary depending on who denies the renewal of the contract. That is, salary multiplied by five divided by 2 plus salary multiplied by 2, the sum of this is multiplied by 66.67% since 7 years fall under the bracket of the next five years. End of Service Benefit is based on the latest salary received by the employee. Meanwhile, if the employee worked for exactly 5 years, he or she only get 33.33% as of the end of service benefit. In figures, it is SAR15,000 x 16.67% x 3 = SAR7501.50. 1. If any company is fails to pay the fine to fix the issue in time, The Ministry of Labor & Social Development can also suspend its services . When an employee resigns, four possible cases serve as a basis of the End of Service Benefit an employee may receive. Ministry: Ministry of Labor. The worker is entitled to a gratuity for the served fraction of a year, provided that he completes one year of continuous service. Leave with pay I got until June 2013. An employee who joins the company or organization for less than two years is not entitled to an End of Service Benefit. Resignation from Job Before Two Years: Every employee in Saudi Arabia must be clearly mention this in his mind that if he/she resigns from his job before completing Two Years of Job period there is no End of Service Benefits … In Saudi Arabia, a proper document is distributed by the Ministry of Labor about Labor Law. If an employee is resigned before the service of two years, Then he is not eligible for any kind of End of Service Benefits like ESB, percentage of Salary, Entitlement. For every four consecutive years, a domestic helper is entitled to a one month salary. ; The maximum number of working hours in Saudi Arabia is 48 hours / week. UAE Exchange Locations Termination of contract without a valid reason: If the contract is to be terminated without a valid reason, the party harmed by the termination is entitled to be compensated by the other party. Full salary per annum after the first 5 years. ... July 10, 2020 at 2:57 pm Entitlement to End of Service Benefits, however, varies depending on the status of the worker, such as if he resigned or he was terminated. If any company is fails to pay the fine to fix the issue in time, The Ministry of Labor & Social Development can also suspend its services . Saudi Labour Law as amended (English & Arabic) Original Labour Law (2005) Official English version; Saudi Domestic Workers' Law - Minsterial Decision No.310 (English & Arabic) Ministerial Decision No.605 on transfer of domestic workers (English) In early 2015, the Saudi Arabian Ministry of Labor announced an overhaul of the Labor Law that would include 38 amendments (the Amendments) to its statutory provisions. I asked for a release also but employer is not agreeing to the … Severance award: In accordance with the Saudi labor law, a severance award is payable by the company to employees who leave after two years or more of satisfactory service. Failure to perform duties, follow legitimate orders or safety instructions; disobedience, Misconduct or acts infringing on honesty or integrity, Deliberately causing material loss to the employer, Absence from work for more than 20 days in one year or for more than10 consecutive days, Unlawfully takes advantage of his position for personal gain. ... July 10, 2020 at 2:57 pm 2 weeks in case of resignation. For instance, an employee is terminated after 9 years in service, and receives SAR20,000 as his or her last paycheck, gets SAR130,000. However, the calculation of the ESB differs from that of other workers. ESB for the domestic workers is stated at Ministerial Decision 310 of 1434 of Domestic Workers at the year 2013. The severance award is based on length of continuous service and final base pay. The ESB of an employee who does not complete an entire year is computed proportionally. Only the basic salary, housing allowance, and transportation allowance are included at the end of service benefits. 3. ESB for the domestic workers is stated at Ministerial Decision 310 of 1434 of Domestic Workers at the year 2013. Some of the rules were just changed in 2016, so we wanted to make sure that the client was using the most up to date employment rules. I resigned on 20-3-2016 and my last working day was 11-5- 2016. Case 1:  An employee who is terminated from an organization before completing a 5-year stay in the company receives a full entitlement and half salary as an ESB award. Phone and food stipend are excluded. Termination of Contract, As per Saudi Arabia Labor Law, Job Termination, Resignation, Notice Period, End of Service, Employer, Employee As per the new changes in Saudi Labor Law 2019 an employee can be fired without even receiving his End of Service Benefits (ESB) in the following conditions: 2. November 11 2013 11:12 PM. In such event, provisions of Article 53 of this Law shall apply with regard to the worker’s end of service benefit. 01 March 2017. While some of the BASIC points of the Labour law are outlined below, for further details, the text of the Labour Law available on the Embassy of India website may be referred to. Coverage: The ESB of an employee who does not complete an entire year is computed proportionally. © 2009 - 2020 - Pinoy OFW All Rights Reserved. Under Saudi Arabian law, the employment relationship between employer and employee is governed comprehensively by the Labor and Workmen's Law (the Labor Law). Resignation from Job Before Two Years: Every employee in Saudi Arabia must be clearly mention this in his mind that if he/she resigns from his job before completing Two Years of Job period there is no End of Service Benefits given to him. (12) Partial Deletion 1. RIYADH – The Ministry of Labor and Social Development denied on Tuesday rumors about changes made in the Labor Law pertaining to the end of service benefits … There is no maximum number of years for the EOS payment award. In Saudi Arabia, a proper document is distributed by the Ministry of Labor about Labor Law. These were mentioned in Article 80 and 81 of Saudi Labor Laws. A worker is entitled to receive the rights guaranteed by the Labour Law. End of Service Reward Calculator The end of service benefits of worker’s rights on the employer in the case of termination of the employment contract, and it is obligatory on the employer to pay the worker at the end of the contract of employment, whether it is a fixed-term contract or indefinite. Termination of Contract, As per Saudi Arabia Labor Law, Job Termination, Resignation, Notice Period, End of Service, Employer, Employee The ESB of an employee who does not complete an entire year is computed proportionally. 2. Closure of Business If the company or business has permanently closed down, a contract is automatically terminated under Article 74 (6) of Saudi Labor Law. Ria Money Transfer An employee who works for the company for more than 2 years but less than 5 years is entitled to 1/3 of his or her ESB award, which is half salary. An employee who stays in the company for more than 5 years but less than 10 years receives 2/3 entitlement and an ESB award or half salary for the first five years and full salary for the next five years. In figures, {(SAR20,000 * 5/2)+(20,000 * 2)} * 66.67% = 60,003. 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End Service benefits ( ESB ) Law, there are five articles 84-88! Ending or terminating the work agreement to a gratuity for the EOS payment award 48! X 16.67 % x 3 = SAR7501.50 saudi labor law end of service benefits 2020 ( SAR20,000×4 ) =.. The termination regulations for our client hours in Saudi Arabia are entitled to ESB * ).