Quick Summary
- Notice period is mandatory for both employer and employee under Saudi Labour Law
- Unlimited contract under 2 years → 30 days notice
- Unlimited contract 2+ years → 60 days notice
- Fixed-term contract → 30 days notice for both parties
- If notice is not served, the party skipping must pay full salary for the notice period
- During notice period, you must continue receiving full salary and benefits
What Is Notice Period in Saudi Labour Law?
The notice period is the time between when an employee or employer announces the end of employment and when the employment actually ends. It is governed by Articles 75 and 76 of Saudi Labour Law.
Both the employer and the employee are legally required to serve the notice period — or pay compensation in lieu of notice if they choose not to. This applies to both Saudis and expatriate workers.
The purpose of the notice period is to give both parties time to prepare — the employee to find a new job and the employer to find a replacement. It is a protection for workers that many expats are not aware of.
Notice Period by Contract Type
| Contract Type | Service Period | Notice Period | Who It Applies To |
|---|---|---|---|
| Unlimited (Open-ended) | Under 2 years | 30 days | Both employer and employee |
| Unlimited (Open-ended) | 2 years or more | 60 days | Both employer and employee |
| Fixed-Term (Limited) | Any period | 30 days | Both employer and employee |
What Happens During the Notice Period?
During the notice period, your employment continues as normal. This means:
- You must continue reporting to work unless mutually agreed otherwise
- Your employer must continue paying your full salary and benefits
- Your iqama must remain valid — employer cannot cancel it during notice
- You continue accumulating EOSB throughout the notice period
- Annual leave entitlement continues to accumulate during notice
- Under Article 76, you are entitled to one paid day off per week during notice to search for a new job
Pay in Lieu of Notice — When Notice Is Not Served
Sometimes either the employer or employee does not want to serve the full notice period. This is allowed — but the party who skips the notice must pay the other party the equivalent salary for the notice period. This is called "pay in lieu of notice."
| Situation | Who Pays | Amount |
|---|---|---|
| Employer terminates without notice | Employer pays employee | Full salary for notice period days |
| Employee resigns without serving notice | Employee pays employer | Salary equivalent for notice days |
| Both parties mutually agree to waive notice | Neither party pays | No penalty — mutual agreement |
| Employer asks employee to leave immediately | Employer pays employee | Full salary for remaining notice days |
Can Your Employer Force You to Leave Immediately?
Yes — but only if they pay you in lieu of notice. An employer can ask you to stop working immediately after giving notice, but they must pay your full salary for the entire notice period. This is sometimes called "garden leave" and is legal under Saudi Labour Law as long as payment is made.
What is not legal is asking you to leave immediately without any payment. If your employer asks you to leave the same day and refuses to pay notice period salary, you have grounds for a labour complaint.
Calculate Your Notice Period Pay
Use our free Notice Period Calculator to find out exactly how much pay in lieu of notice you are entitled to — or how much you owe if you resign without serving notice.
Open Notice Period CalculatorNotice Period When You Resign
When you resign, you are required to serve your notice period just like the employer. If you leave without serving notice:
- Your employer can deduct the equivalent notice period salary from your final settlement
- Your employer can file a labour complaint against you for the notice period pay
- In practice, most employers simply deduct from EOSB or final settlement — very few actually file complaints
- If you have a strong reason to leave immediately (unpaid salary, abuse, unsafe conditions), document it — this may exempt you from notice obligations
When Can You Resign Without Serving Notice?
Under Article 81 of Saudi Labour Law, an employee can resign immediately without notice and without penalty in the following situations:
- Employer fails to meet contractual obligations — such as not paying salary
- Employer assaults or mistreats the employee
- The work poses a serious and proven danger to the employee's health or safety
- Employer or manager practices fraud or deception toward the employee
- Third party physically assaults the employee at work with the employer's knowledge and no action is taken
In these situations, resigning without notice is treated as if the employer terminated you — meaning you may be entitled to full EOSB and compensation. You must be able to prove the condition with evidence.
Notice Period and EOSB — Does Notice Affect Your Gratuity?
Yes — notice period has a direct impact on your EOSB in two ways:
- If your employer pays you in lieu of notice — that period is counted as part of your service for EOSB purposes. Your EOSB is calculated up to your last actual working day plus the notice period paid in lieu.
- If you resign and skip notice — and the employer deducts notice pay from your final settlement, the deducted period may reduce your calculated EOSB base.
Notice Period for Fixed-Term Contracts
Fixed-term contracts have specific rules around notice:
- If a fixed-term contract expires naturally, no notice is required — the contract simply ends on the agreed date
- If either party wants to terminate a fixed-term contract before its expiry date, 30 days notice is required
- If the employer terminates early without notice, they must pay salary for the remaining contract period or 30 days notice pay — whichever is less
- If the employee breaks a fixed-term contract early without valid reason, they may owe compensation to the employer — check your contract carefully for penalty clauses
Notice Period and Iqama — What Happens to Your Status?
During your notice period your iqama remains fully valid. Your employer cannot cancel your iqama or stop your sponsorship until your employment officially ends — which is at the end of the notice period, not when notice is given.
After your employment ends, your employer must either:
- Issue a Final Exit visa so you can leave Saudi Arabia
- Transfer your sponsorship to a new employer
- Give you a specific period to find new employment
If your employer cancels your iqama before the notice period ends, they are in violation of Saudi Labour Law. File a complaint at HRSD immediately if this happens.
What If Your Employer Refuses to Accept Your Resignation?
Your employer cannot legally refuse your resignation. Resignation is your right under Saudi Labour Law. However, they can require you to serve the full notice period.
If your employer says "we do not accept your resignation" — this has no legal meaning. Submit your resignation in writing, keep a copy, and start counting your notice period from the date of submission. After the notice period, your employment ends regardless of what the employer says.
Common Notice Period Mistakes Expats Make
- Not knowing their notice period length — Always check your Qiwa contract before resigning. Your contract may specify more than the legal minimum.
- Resigning verbally — Always resign in writing. Verbal resignation can be disputed and creates confusion about the start date of your notice period.
- Leaving without completing notice or getting a release letter — This can result in deductions from your EOSB and in worst cases a Huroob filing by the employer.
- Not claiming the weekly job search day — Under Article 76 you are entitled to one paid day off per week during notice to job hunt. Many expats do not know this.
- Accepting immediate termination without pay in lieu — If your employer asks you to leave immediately, make sure they pay you for the full notice period. Get it in writing.
Frequently Asked Questions
My employer gave me only 2 weeks notice instead of 30 days. What can I do?
You are entitled to the remaining notice period pay. If your employer is only giving 2 weeks when 30 days is required, they must pay salary for the other 2 weeks as pay in lieu. File an HRSD complaint if they refuse.
Can my employer change my notice period during employment?
Only with your written agreement. If your employer tries to unilaterally change your notice period to something shorter or longer, it requires your consent. Any change must be reflected in an updated Qiwa contract.
I resigned but my employer is asking me to leave immediately without paying notice. What do I do?
If you resigned, you were obligated to serve notice — not your employer. If your employer asks you to leave immediately after your resignation, they are waiving their right to your notice. In this case, you are free to go and cannot be charged for unpaid notice. Get this instruction in writing if possible.
Does the notice period count toward EOSB calculation?
Yes. The notice period — whether served or paid in lieu by the employer — counts as part of your total service period for EOSB calculation. It increases your total years of service by the notice period duration.
Can I take annual leave during notice period?
Only with employer agreement. The employer can decline annual leave requests during the notice period. If there is pending leave you have not taken, it should be paid out as part of your final settlement instead.
My contract says 90 days notice. Is that legal?
Yes. Saudi Labour Law sets the minimum notice period — contracts can specify longer periods. If your contract says 90 days, both you and your employer must give 90 days notice. This is legally binding.
Notice Period Dispute With Your Employer?
Whether your employer is refusing to pay notice, trying to force you to leave without payment, or you are unsure about your obligations — book a personal consultation for clear guidance on your exact situation.