Business Glossary /
Saudi Labor Law
An employee's decision to leave employment of their own accord triggering specific entitlements and obligations under Saudi Labor Law.
Voluntary resignation in Saudi Arabia triggers specific obligations for both the employee and the employer. The resigning employee must provide the required 60-day notice period for indefinite-term contracts. The employer must process all final entitlements — including EOSB (at potentially reduced rates for resignation within the first 5 years), unused annual leave and final salary — within seven working days of the employment end date. The employer is also required to cancel the employee's Iqama and process exit visa for expatriates. Failure to honor final settlement obligations following voluntary resignation can still result in labor complaints.
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