When discussing end-of-service benefits in the event of resignation, it is necessary to first clarify what is meant by resignation. Resignation means that the employee notifies the employer or their representative of their desire to terminate the employment relationship voluntarily, whether the contract is fixed-term or indefinite.<\/p>\n\n\n\n There are various reasons that prompt an employee to resign, the most prominent of which are:<\/p>\n\n\n\n These reasons, despite their legitimacy, do not entitle the employee to the full end-of-service benefits, given that the termination of the relationship occurred at the employee’s own request, not for a reason attributable to the employer. Therefore, Saudi labor law article 85\u200b sets out the rules governing entitlement to end-of-service benefits in the event of resignation, as follows:<\/p>\n\n\n\n Read also: Article 74 Saudi Labor Law: Contract Termination Reasons<\/a><\/p>\n\n\n\n 1. If the length of service is less than two years<\/strong><\/p>\n\n\n\n If an employee resigns before completing two years of service, they are not entitled to any benefits for their period of service.<\/p>\n\n\n\n 2. If the length of service is two years or more, but does not exceed five years<\/strong>In this case, the employee is entitled to one-third of the end-of-service benefits stipulated in Article 84 of the Labor Law.<\/p>\n\n\n\n Illustrative Example:<\/strong><\/p>\n\n\n\n 1. Calculate the number of days of service:<\/p>\n\n\n\n 4 years x 360 days = 1,440 days<\/p>\n\n\n\n 8 months x 30 days = 240 days<\/p>\n\n\n\n Total = 1,680 days<\/p>\n\n\n\n 2. Calculate the benefits according to Article 84 (half a month’s wages for each year):<\/p>\n\n\n\n 4,000 x 1,680 \u00f7 720 = 9,333.33 riyals (full benefits)<\/p>\n\n\n\n 3. Entitlement to only one-third of the benefits:<\/p>\n\n\n\n 9,333.33 x 1\/3 = 3,111.11 riyals<\/p>\n\n\n\n Due end-of-service benefits = 3,111.11 riyals<\/p>\n\n\n\n 3. If the length of service exceeds five years but does not exceed ten years,in this case, the worker is entitled to two-thirds of the end-of-service benefits.<\/p>\n\n\n\n Check out: End of Service Benefits Saudi Labor Law: Rights After Contract Termination<\/a><\/p>\n\n\n\n Illustrative Example:<\/strong><\/p>\n\n\n\n 1. Bonus for the first five years (half a month’s salary for each year):<\/p>\n\n\n\n 5,000 x 5 \u00f7 2 = 12,500 riyals<\/p>\n\n\n\n 2. Bonus for the period after five years (full month’s salary for each year):<\/p>\n\n\n\n 5,000 x 2 + (5,000 \u00f7 12 x 3) = 10,000 + 1,250 = 11,250 riyals<\/p>\n\n\n\n 3. Total bonus due:<\/p>\n\n\n\n 12,500 + 11,250 = 23,750 riyals<\/p>\n\n\n\n 4. Only two-thirds of the bonus is due:<\/p>\n\n\n\n 23,750 x 2\/3 = 15,833.33 riyals<\/p>\n\n\n\n Bonus End of service benefits due = 15,833.33 riyals<\/p>\n\n\n\n 4. If the employee has served for ten years or more, the employee is entitled to the full end-of-service benefits stipulated in article 85 Saudi labor law.<\/p>\n\n\n\n Illustrative Example<\/strong>:<\/p>\n\n\n\n 1. Benefits for the first five years (half a month’s salary for each year):<\/p>\n\n\n\n 6,000 x 5 \u00f7 2 = 15,000 riyals<\/p>\n\n\n\n 2. Benefits for the next six years (full one month’s salary for each year):<\/p>\n\n\n\n 6,000 x 6 = 36,000 riyals<\/p>\n\n\n\n 3. Total benefits due:<\/p>\n\n\n\n 15,000 + 36,000 = 51,000 riyals<\/p>\n\n\n\n End-of-service benefits due = 51,000 riyals.<\/p>\n\n\n\n![\"Article](\"https:\/\/etqanlawfirm-sa.com\/wp-content\/uploads\/2025\/03\/Article-85-Saudi-Labor-Law2webp-1024x535.webp\" "\\"\\"")
Reasons for Resignation<\/strong><\/h3>\n\n\n\n
\n
\n
\n
![\"Article](\"https:\/\/etqanlawfirm-sa.com\/wp-content\/uploads\/2025\/03\/Article-85-Saudi-Labor-Lawwebp-1024x535.webp\" "\\"\\"")
\n
<\/a>Differences Between Article 84 and Article 85 of the Labor Law<\/strong><\/h2>\n\n\n\n