Key Points — Article 75 at a Glance
- Article 75 applies to unlimited (open-ended) contracts only — not fixed-term
- Employer terminates → must give 60 days notice minimum
- Employee resigns → must give 30 days notice minimum
- If employer skips notice → must pay up to 60 days salary in lieu
- If employee skips notice → employer may deduct up to 30 days salary
- During notice period, employee gets one paid day off per week to job-hunt
- Notice period counts toward total service for EOSB calculation
What Is Saudi Labour Law Article 75?
Article 75 of the Saudi Labour Law sets the minimum notice period that must be observed before terminating an unlimited (open-ended) employment contract. It protects both the employer and the employee by ensuring neither side can be left in a sudden, unplanned position when the employment relationship ends.
The article establishes two different minimum notice periods depending on who is ending the contract — the employer or the employee. This is one of the most frequently searched labour law topics in Saudi Arabia because the asymmetry (60 days vs 30 days) surprises many expats who expect the same period to apply both ways.
Employer Must Give Employee:
Minimum notice before terminating an unlimited contract. If less than 60 days is given, the employer must pay the balance as notice pay in lieu.
Employee Must Give Employer:
Minimum notice before resigning from an unlimited contract. If less than 30 days is served, the employer may deduct up to 30 days salary from the final settlement.
Which Contracts Does Article 75 Apply To?
Article 75 applies exclusively to unlimited (open-ended) contracts — where there is no agreed end date and the employment continues indefinitely until one party gives notice. This is the most common contract type for professional expats in Saudi Arabia.
Fixed-term contracts are governed separately under Article 55. They run to their agreed end date and do not require a notice period at expiry. Early termination of a fixed-term contract by either party has different rules and different financial consequences — see the fixed-term contract guide for full details.
Article 75 — All Scenarios Explained
| Scenario | Contract Type | Notice Required | Financial Consequence if Ignored |
|---|---|---|---|
| Employer terminates employee | Unlimited | 60 Days (Employer) | Employer pays up to 60 days salary in lieu of notice |
| Employee resigns | Unlimited | 30 Days (Employee) | Employer may deduct up to 30 days salary from final settlement |
| Mutual agreement to end contract | Unlimited | Mutually Agreed | No penalty — any agreed terms apply. Get it in writing. |
| Employer terminates for Article 80 cause | Unlimited | No Notice Required | No notice pay — but EOSB may still be partially owed |
| Employee resigns for Article 81 cause | Unlimited | No Notice Required | No deduction — employee retains full EOSB rights |
| Fixed-term contract reaches end date | Fixed-term | Not Applicable | Contract ends automatically — no notice period needed |
| Fixed-term contract terminated early by employer | Fixed-term | Not Applicable | Employer compensates employee for remaining contract period |
How Notice Pay Is Calculated — With Example
Notice pay is always calculated on basic salary only — not total package. Housing allowance, transport allowance, food allowance and other benefits are excluded from the notice pay calculation.
The formula is straightforward:
Daily Rate = Basic Monthly Salary ÷ 30
Notice Pay = Daily Rate × Number of Notice Days Not Served
Maximum: 60 days (employer) or 30 days (employee)
Example — Employer Terminates Without Notice
This is in addition to EOSB and any other outstanding entitlements. Use our Final Settlement Calculator to calculate the full amount owed.
Your Rights During the Notice Period
The notice period is not a formality — the employment contract continues fully in effect during this time. Both sides have clear obligations and rights:
Full Salary Continues
The employer must continue paying the full salary throughout the notice period exactly as normal. No deduction or reduction is permitted. If the employer stops salary during the notice period, this is an additional violation.
Employee Must Continue Working
Unless mutually agreed otherwise, the employee must report to work and fulfil all duties normally. Abandoning work during the notice period without employer agreement can be treated as a disciplinary matter.
One Paid Day Off Per Week to Job Hunt
Under Article 77, during a notice period initiated by the employer, the employee is entitled to one paid day off per week to look for alternative employment. The employee chooses which day. This day is fully paid and cannot be withheld.
All Benefits Remain Active
Health insurance, accommodation, transport and all other contractual benefits must continue during the notice period as normal. The employer cannot terminate benefits before the notice period ends.
Mutual Agreement to Waive Notice
Either party can propose to waive the working notice period and settle via payment in lieu. This must be agreed in writing by both parties. If the employer proposes this, they must pay the full notice pay equivalent. If the employee proposes this, the employer may agree to deduct the equivalent from the final settlement.
When Notice Period Is NOT Required
There are specific situations under Saudi Labour Law where the notice period does not apply and either party can end the contract immediately:
Employer Can Terminate Immediately — Article 80 Grounds
If an employee commits a serious violation listed under Article 80, the employer can terminate without notice and without paying notice pay. These include assaulting the employer or colleagues, serious breach of employment duties, disclosing confidential information, being absent more than 20 days per year without valid reason, and other defined disciplinary grounds. The employer must follow the disciplinary procedure properly — verbal warning, written warning, then termination — except in cases of extreme misconduct where immediate termination is permitted.
Employee Can Leave Immediately — Article 81 Grounds
If the employer commits a serious violation against the employee, the employee can resign immediately without notice and still retain full EOSB rights. Article 81 grounds include the employer assaulting the employee, the employer failing to honour contractual obligations (including salary non-payment for more than one month), requiring the employee to perform work that is fundamentally different from the agreed role, or any action that endangers the employee's health or safety. If you resign under Article 81 grounds, document the reason clearly in your resignation letter.
What to Do if Your Employer Violates Article 75
If your employer terminates you without giving the required 60 days notice and refuses to pay notice pay, you have clear legal recourse:
- Document everything — keep your termination letter, any written communication, your contract and payslips. These are your evidence.
- File a complaint through Qiwa — the Qiwa platform (qiwa.sa) allows employees to raise labour disputes directly. The process is straightforward and can be done online. Your employer will be notified and asked to respond.
- File through HRSD — the Ministry of Human Resources and Social Development (hrsd.gov.sa) handles labour complaints including non-payment of notice pay. You can file online, by app or in person at an HRSD office.
- Labour Court — if the Qiwa or HRSD dispute process does not resolve the matter, the case proceeds to the Labour Court. The court can order the employer to pay notice pay plus additional compensation for the delay.
- Time limit — labour claims in Saudi Arabia must generally be filed within 12 months of the violation. Do not delay in filing your complaint.
Related Labour Law Guides
Frequently Asked Questions — Article 75 Notice Period
What is Article 75 of Saudi Labour Law?
Article 75 of the Saudi Labour Law governs the notice period that must be given when either the employer or the employee wishes to terminate an unlimited (open-ended) employment contract. It requires a minimum notice period of 60 days if the employer is terminating the contract, and 30 days if the employee is resigning. Both parties can agree in writing to a longer notice period in the employment contract, but cannot agree to less than these minimums.
Is the notice period 30 days or 60 days in Saudi Arabia?
It depends on who is giving notice. Under Article 75, if the employer terminates the contract, they must give the employee a minimum of 60 days notice. If the employee resigns, they must give the employer a minimum of 30 days notice. These minimums apply to unlimited (open-ended) contracts. Fixed-term contracts have different rules — they generally run to completion and early termination requires mutual agreement or compensation.
What happens if the employer terminates without giving 60 days notice?
If the employer terminates without giving the required 60 days notice, they must pay the employee notice pay equivalent to the salary for the notice period not served — up to 60 days basic salary. This is called payment in lieu of notice. The employee is also still entitled to full EOSB and any other outstanding entitlements. The employee can file a complaint through HRSD or Qiwa if notice pay is withheld.
Does Article 75 apply to fixed-term contracts?
No — Article 75 applies specifically to unlimited (open-ended) employment contracts. Fixed-term contracts are governed by Article 55 and run to their agreed end date. If a fixed-term contract is terminated early by the employer without cause, the employer must compensate the employee for the remaining contract period. If the employee leaves a fixed-term contract early without cause, they may owe the employer compensation.
Can my employer make me work during the notice period?
Yes — during the notice period, the employment contract continues in full effect. The employee must continue working normally, following all duties and obligations. The employer must continue paying salary as normal. However, either party can agree to waive the working notice and instead pay or receive payment in lieu of notice. During the notice period the employee is also entitled to one paid day off per week to search for a new job under Article 77.
What is notice pay and how is it calculated?
Notice pay is the salary payment made when one party terminates without serving the full notice period. It is calculated on basic salary only — not total package. For employer termination without notice: notice pay = (basic monthly salary ÷ 30) × number of notice days not served, up to 60 days. For employee resignation without serving notice: the employer may deduct the equivalent of up to 30 days basic salary from the final settlement.
Can I resign without serving the notice period?
You can submit resignation and leave, but if you do not serve the 30-day notice period required under Article 75, your employer may deduct up to 30 days basic salary from your final settlement as compensation. In practice, many employers agree to waive the notice period — get any such agreement in writing. If you leave without notice and without employer agreement, it can also affect your ability to transfer sponsorship cleanly.
Does the notice period affect my EOSB?
The notice period itself does not reduce EOSB. EOSB is calculated based on your total length of service including the notice period if served. If the employer terminates and pays notice pay in lieu of notice, the EOSB calculation typically ends at the termination date. However your EOSB entitlement is calculated on your full service up to that date at your final basic salary rate.