Resignation Rules in Saudi Arabia — How To Resign Properly 2026

Can You Resign Freely in Saudi Arabia?

Yes. Every worker in Saudi Arabia has the right to resign at any time. Your employer cannot legally prevent you from resigning or force you to continue working against your will. Resignation is a fundamental right under Saudi Labour Law.

However — how you resign matters enormously. The way you resign affects your EOSB amount, your iqama status, your final settlement and your ability to leave the country. A poorly handled resignation can cost you months of salary in lost benefits.

Step-by-Step — How To Resign Correctly

EOSB After Resignation — The Exact Rates

This is what most expats get wrong. Resignation does not mean zero EOSB — it means reduced EOSB depending on how long you served. Here are the exact rates:

Resignation Letter — What To Include

Your resignation letter does not need to be long or complicated. It must include these key elements:

• Your full name and Iqama number
• Your job title and department
• Clear statement that you are resigning
• Date of resignation submission
• Your intended last working day — calculated from notice period start
• A professional closing — thank the employer for the opportunity

What Happens If You Resign Without Serving Notice?

If you resign without serving your notice period, these consequences can apply:

• Salary deduction — Your employer can deduct the equivalent of your notice period salary from your final settlement
• Huroob risk — If you simply stop showing up without submitting a formal resignation, your employer can file Huroob against you after 3 days absence
• EOSB dispute — Employer may try to use the missed notice as grounds to reduce EOSB further, though legally they can only deduct notice pay, not cancel EOSB entirely
• Blocked Final Exit — Some employers refuse to issue Final Exit until the notice dispute is resolved

When You Can Resign Without Notice — Article 81

Under Article 81 of Saudi Labour Law, you can resign immediately without serving notice and without penalty in these specific situations:

• Employer has not paid your salary for more than one month
• Employer physically assaulted or mistreated you
• Work conditions pose a serious threat to your health or safety
• Employer committed fraud or serious deception against you
• Your duties changed significantly from what was agreed in your contract

In these situations an Article 81 resignation is treated as if the employer terminated you — meaning you may be entitled to full EOSB regardless of your service length, plus additional compensation. You must document the reason with evidence before resigning this way.

Resigning From a Fixed-Term Contract

Fixed-term contracts are different from unlimited contracts when it comes to resignation:

• You can resign from a fixed-term contract but must give 30 days notice regardless of service length
• If you resign before the contract end date without a valid reason, the employer may claim compensation from you — often up to 45 days salary. Check your contract for specific penalty clauses.
• If you wait until the contract expiry date, you are entitled to full EOSB — treated the same as termination
• Waiting for contract expiry is almost always better financially than resigning mid-contract

Can Your Employer Refuse Your Resignation?

No. Your employer cannot legally refuse your resignation. Resignation is your fundamental right. If your employer says they will not accept your resignation:

• Submit your resignation in writing and keep the proof
• Start counting your notice period from your submission date
• Continue working during the notice period
• After notice period ends, your employment is legally finished regardless
• If they block your Final Exit after this, file a complaint at HRSD immediately

Resignation and Your Iqama

After your resignation and notice period ends, your iqama status depends on what happens next:

• If you are leaving Saudi Arabia — employer must issue Final Exit visa within a reasonable time
• If you have a new job — new employer initiates sponsorship transfer through Qiwa
• Your iqama remains under your current employer's sponsorship until one of the above happens
• Do not let your iqama expire during this transition period — fines of SAR 100 per day apply from expiry

Most Common Resignation Mistakes Expats Make

• Resigning verbally — No legal standing. Always submit in writing via email or Qiwa platform.
• Not calculating EOSB first — Many expats resign just before crossing a service milestone and lose thousands of SAR unnecessarily.
• Just stopping coming to work — This is not resignation. This triggers Huroob after 3 days and destroys all your rights.
• Signing the settlement before receiving payment — The most costly mistake. Once signed, very difficult to claim more.
• Leaving without Final Exit or sponsorship transfer — Creates serious iqama complications and potential fines.
• Resigning without checking contract notice period — Your contract may require 90 days notice. Ignoring this results in deductions from your settlement.

Frequently Asked Questions