Saudi Labor Law Resignation Guide 2025 – Etqan Law Firm

Saudi labor law resignation outlines clear and specific rules that govern the resignation process between employees and employers in Saudi Arabia. Understanding these regulations is essential for both parties to ensure a smooth and professional transition while safeguarding their legal rights.

The employment contract plays a central role in defining the professional relationship, but when an employee chooses to resign, adhering to the proper legal procedures set by Saudi labor law helps prevent misunderstandings, protects both parties’ interests, and minimizes the risk of disputes or complications during the resignation process.

Saudi Labor Law Resignation

According to the Saudi labor Law resignation simply refers to an employee expressing their desire to end the employment relationship with their employer by submitting a written request. However, the resignation is not considered final unless the employer formally approves it in writing.

This matter is governed by Article 74 of the Saudi Labor Law, which allows termination of the employment contract whether fixed-term or open-ended provided that the resignation is submitted and accepted in a documented manner.

In the case of open-ended contracts, the law adds an extra condition under Article 75. It requires the party wishing to terminate the contract to serve a written notice to the other party in advance, within a reasonable timeframe. The required notice period is as follows:

• At least 60 days if the employee is paid on a monthly basis.
• At least 30 days in all other cases.

As for employees subject to the Civil Service Law (i.e., government employees), they must submit their resignation to their respective government entity and then wait:

• Either for formal approval of the resignation.
• Or for 30 days to pass from the date of submission without receiving a response.

In either case, under Saudi labor law resignation rules, the resignation is considered accepted once it is explicitly approved or if 30 days pass without any official reply.

Read also: A Comprehensive Guide: Saudi Labor Law Resignation Benefits

Saudi Labor Law Resignation Benefits

When an employee submits their resignation, they remain entitled to all their financial and non-financial rights—whether stated in their employment contract or granted under the Saudi Labor Law and its Executive Regulations. These rights include the following:

• Payment of all outstanding wages that are still owed by the employer.
• Compensation for any unused, accrued vacation days.
• Receipt of all allowances and compensations earned during their period of service, such as housing, transportation, or other benefits specified in the contract.
• End-of-service gratuity, based on the length of service with the employer:
  • If the service period is between 2 and less than 5 years: the employee is entitled to one-third of the gratuity.
  • If the service is between 5 and less than 10 years: they are entitled to two-thirds of the gratuity.
  • If the service period exceeds 10 years: the employee is entitled to the full gratuity.
• The right to obtain a work certificate or experience letter, which must include:
  • The start and end dates of employment.
  • The job title held.
  • The salary received.
  • Finally, Saudi labor law resignation procedures also ensure the employee receives back all personal documents, tools, or equipment handed over to the employer during or at the start of employment, such as original certificates, identification papers, or any other personal or official items

Check out: Understanding Legal Saudi Labor Law working hours

Can an Employer Reject a Resignation in Saudi Arabia?

Under Saudi labor law resignation rules, there is no such thing as a permanent rejection of resignation. Instead, an employer may postpone acceptance of a resignation, allowing the company up to six months to manage internal transitions and find a suitable replacement, while giving the employee time to finalize their responsibilities.

A complete and final rejection of a resignation is inconsistent with both administrative and human values, which guarantee the employee’s right to choose their career path and leave the job when they see fit.

We distinguish here between two main cases:

1- Resignation in a Public Sector

In government jobs, resignation is not immediately accepted, for the following reasons:

• Ensuring continuity of public services and preventing service disruption.
• Difficulty in quickly replacing an employee, which could lead to administrative disorder or reduced productivity.

Thus, public sector employers have the right to delay acceptance of a resignation within a specific timeframe based on the public interest. However, this does not grant the employer the right to reject it outright.

The public employee is required to:

• Continue working until an official decision is issued regarding their resignation.
• Wait for a response from the relevant authority, which must issue a decision within a set period from the date of the resignation request.

2- Resignation in a Private Sector

• Saudi Labor Law governs the relationship between private companies and their employees, including resignation procedures, in a way that ensures a balance of rights between both parties.
• Submit a written resignation with clear reasons and justification.
• If the resignation is due to employer negligence, the company must first address the issue.
• Once accepted, the employee must:
  • Settle any outstanding financial obligations.
  • Return company property as per the terms of the contract.

Situations where an employer may temporarily reject a resignation:

• If the employee’s departure at that time would significantly harm company interests.
• If the reasons for resignation are illogical or violate contract terms.
• If a suitable replacement has not yet been arranged to take over the employee’s responsibilities.

Resignation is a fundamental right of employees in Saudi Arabia, but it should be handled in a way that does not disrupt operations.

Saudi Labor Law for Expatriates Resignation

When it comes to resignation under the Saudi Labor Law, the general rules apply equally to all employees, whether they are Saudi nationals or expatriates. This includes the mandatory 30-day notice period under Article 75 of the Labor Law for open-ended contracts, or any other notice period agreed upon in the employment contract.

However, there are key differences in the legal procedures following resignation for expatriates compared to Saudi nationals:

1. Final Exit or Sponsorship Transfer: After resigning, an expatriate worker must either leave the Kingdom through a final exit visa or transfer their sponsorship to a new employer via approved platforms (such as “Qiwa”) and under the supervision of the Ministry of Human Resources.
2. Residency and Visa Status: Resignation directly affects the legal status of an expatriate’s iqama (residency permit), and it’s illegal to remain in Saudi Arabia without a valid sponsor or visa.
3. No Access to National Programs: Unlike Saudi citizens, expatriates are not eligible for national support schemes such as the SANED unemployment insurance or government employment initiatives.
4. Final Settlement and Remittance: End-of-service benefits are paid based on the employment contract, but transferring the funds abroad may involve specific banking procedures for expatriates.
5. Employer Notification: Although Article 75 applies to all, some employers may require longer notice periods or additional documentation from expatriate workers, particularly to manage exit or transfer logistics.

Learn about: Saudi Labor Law Article 81: The Employee Rights

Conclusion:

Saudi labor law resignation rules can be complex, especially when navigating notice periods, legal obligations, and employee rights. For anyone seeking clarity or facing issues during the resignation process, it’s essential to get professional legal support. Etqan Law Firm provides specialized legal services in employment and labor law in Saudi Arabia, helping both employers and employees stay compliant and protect their rights through every step of the resignation process.

The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +966550600204, +966551020060.

Additionally, feel free to visit our branches located at:

• Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
• Riyadh: King Abdulaziz Street, across from the Kingdom Tower
• Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.

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