Resignation Rules in Saudi Arabia After the 2025 Amendments
Content updated · About Abdullah Almendaha, licensed Saudi lawyer (licence 46592)
Before 2025, the Labor Law had no detailed procedure for resignation.
The amendments that came into force on 19 February 2025 changed that. Resignation is now a defined way of ending a fixed-term contract, with a clear procedure and fixed time limits.
We advise employees in Jubail, Dammam and Khobar before they resign.
The 2025 resignation procedure
The rules are in the amended definition in Article 2 and in Article 79 bis, added by the 2025 amendments:
- What a resignation is. A resignation is the worker's written, unconditional request to end a fixed-term contract (Article 2). An indefinite contract is ended by notice under Article 75 instead.
- Deemed acceptance after 30 days. If the employer does not respond within 30 days of the date you submit it, the resignation is treated as accepted (Article 79 bis).
- Postponement, with reasons. If the work requires it, the employer may postpone acceptance for up to 60 days, counted from its notice. That notice must be written, give reasons, and reach you before day 30 (Article 79 bis).
- Withdrawal within 7 days. You may withdraw your resignation within 7 days of submitting it, unless the employer has already accepted it (Article 79 bis).
- No deferred date. A resignation cannot name a later effective date, and the contract stays in force while the resignation is pending (Article 79 bis).
Your resignation therefore takes effect on whichever of these applies:
- the date the employer accepts it;
- the end of the 30 days from submission, if the employer has not responded;
- the end of a postponement the employer validly notified.
Example: A project engineer on a fixed-term contract submits a written, unconditional resignation on 1 March. The employer does not respond. Thirty days after submission, his resignation is treated as accepted. Until then, his contract stays in force.
If instead the employer had sent him a reasoned written notice before day 30, stating that the work requires it, it could postpone acceptance for up to 60 days from that notice.
Notice period
An indefinite contract is ended by notice under Article 75, not by resignation. For monthly-paid workers, the worker must give at least 30 days' written notice, and the employer at least 60 days, with a legitimate reason. If notice is not given, the wage for the notice period is payable, unless the parties agreed on a larger amount (Article 76).
For fixed-term contracts, check what your own contract says about leaving early before you resign. See Notice Period in Saudi Arabia.
What resignation does to your end-of-service award
Resignation reduces your award according to your length of service (Article 85):
Consecutive service | Share of the award |
|---|---|
Less than 2 years | None |
2 years up to and including 5 years | One-third |
More than 5 and less than 10 years | Two-thirds |
10 years or more | Full award |
There are exceptions:
- Full award despite resigning. Force majeure, or a woman who resigns within 6 months of marriage or 3 months of giving birth (Article 87).
- Leaving under Article 81 instead of resigning. If a ground such as unpaid salary applies and you can establish it, Article 81 preserves all your statutory rights. If you cannot, your departure may be treated as a resignation or absence. See Article 81.
If your fixed-term contract is close to its end, compare resigning with letting it expire. Article 85's reductions apply to resignation. Where a fixed-term contract simply expires, the award is generally calculated under Article 84 without those reductions. If you declined a renewal or resigned close to expiry, the position can be disputed. See End of Service After Resignation or Contract Expiry.
After the resignation takes effect
- Your employer must pay your wages and entitlements within two weeks (Article 88).
- Unused annual leave is paid on top of the award, calculated on your actual wage (Articles 2 and 111).
- Your return ticket is owed unless you chose to return home without a legitimate reason or were found unfit for work (Article 40).
- Check the final settlement before you sign it. See Signing a Final Settlement.
For employers
- Put a date on every resignation you receive.
- Respond within 30 days, or the resignation will be treated as accepted.
- If you need more time for genuine work reasons, send written reasons before day 30, and stay within the 60-day limit.
- Calculate the award using the Article 85 fractions, and pay within two weeks (Article 88).
FAQ
What happens if my employer does not accept my resignation in Saudi Arabia?
If the employer does not respond within 30 days of submission, your resignation is treated as accepted (Article 79 bis).
Can my employer refuse my resignation?
Under the current procedure it can postpone within the permitted limits, not refuse outright: up to 60 days if the work requires it, by a reasoned written notice given before day 30 (Article 79 bis).
Can I withdraw my resignation?
Yes, within 7 days of submitting it, unless the employer has already accepted it (Article 79 bis).
Does the resignation procedure apply to indefinite contracts?
No. Under the amended Article 2, a resignation is a written, unconditional request to end a fixed-term contract. An indefinite contract ends by notice under Article 75: at least 30 days from a monthly-paid worker, and at least 60 days, with a legitimate reason, from the employer.
How much end of service do I get if I resign?
Nothing under 2 years; one-third for 2 years up to and including 5 years; two-thirds for more than 5 and less than 10 years; the full award at 10 years or more (Article 85).
Talk to us
Before you resign, send us your contract dates and last payslip. We will show you how resigning compares with expiry, or with leaving under Article 81.
We act for employees across Jubail, Jubail Industrial City, Dammam and the Eastern Province.
Message us on WhatsApp +966 55 726 8709.
Related: Saudi Labor Law for Expats · End-of-service claims · Final Exit Visa
This page is general information, not legal advice. For advice on your specific case, contact us.
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