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Saudi Labor Law

Termination of Employment

Termination of Employment

The legal process of ending an employment relationship in Saudi Arabia under the requirements of Saudi Labor Law.

Termination of employment in Saudi Arabia must comply strictly with Saudi Labor Law provisions. Legitimate grounds include gross misconduct, repeated violations of company policy, operational redundancy and mutual agreement. Employers must follow prescribed disciplinary procedures, provide the required notice period and pay all final entitlements including accrued salary, unused annual leave and End-of-Service Benefit (EOSB) within seven working days of termination. Failure to comply with termination procedures or payment obligations can result in labor complaints, fines and reinstatement orders. Inclusive Solutions advises and manages termination processes ensuring full compliance.