Article 75 of the Saudi Labor Law as amended: at least 60 days' written notice from the employer, 30 from the employee, and what happens without notice.
Short answer: Article 75 of the Saudi Labor Law governs ending an indefinite contract for a legitimate reason. Where the wage is paid monthly, the employer must give the employee written notice at least sixty days in advance, and the employee must give the employer at least thirty days. Where the wage is not paid monthly, the notice is thirty days for both parties.
If you are an employee on an indefinite contract who wants to move to another job, or an employer who needs to end an employee's contract, the first thing to know is the notice period. That period changed with the Labor Law amendments issued by Royal Decree M/44 dated 8/2/1446 AH, in force from 20/8/1446 AH, so it now differs between employee and employer after previously being the same. This guide sets out the current text of Article 75, what changed, and what follows if the notice period is not observed. For a review of your situation, see our labor lawyer service.
What does Article 75 say after the amendment?
Article 75 of the Labor Law, as amended by Royal Decree M/44, reads in translation:
"1. If the contract is of indefinite duration and the wage is paid monthly, either party may end it for a legitimate reason as follows:
(a) If the termination is by the employee, the employee must give the employer written notice at least thirty days before the termination date.
(b) If the termination is by the employer, the employer must give the employee written notice at least sixty days before the termination date.
If the contract is of indefinite duration and the wage is not paid monthly, the party ending the contract for a legitimate reason, whether the employee or the employer, must give the other party written notice at least thirty days before the termination date."
What changed in Article 75?
Before the M/44 amendments, the article as amended in 1436 AH required written notice "before termination by a period specified in the contract, of no less than sixty days if the employee's wage is paid monthly and no less than thirty days otherwise", meaning sixty days for both parties under monthly pay.
Situation Before M/44 After M/44 Monthly wage, ended by the employee At least sixty days At least thirty days Monthly wage, ended by the employer At least sixty days At least sixty days Non-monthly wage, either party At least thirty days At least thirty days
What are the conditions for ending a contract under Article 75?
The contract must be of indefinite duration. A fixed-term contract ends when its term expires, and ending it early without justification gives rise to Article 77 compensation (the wage for the remaining term).
There must be a legitimate reason. The text allows termination "for a legitimate reason", so notice alone is not enough if the reason is missing.
The notice must be in writing. Verbal notice does not meet the condition.
The minimum period must be observed.
What happens if the notice period is not observed? (Article 76)
Article 76, as amended in 1436 AH, provides in translation:
"If the party ending an indefinite contract does not observe the notice period under Article 75 of this Law, it must pay the other party, for the notice period, an amount equal to the employee's wage for that same period, unless the parties agree on more."
In other words, the consequence is financial and is calculated on the employee's wage, whether the party in breach is the employer or the employee.
What are your rights during the notice period? (Article 78)
Where the employer gives notice, Article 78 entitles the employee to be absent during the notice period for one full day a week or eight hours during the week to look for other work, with pay for that day or those hours, provided the employee sets the day and hours of absence and informs the employer at least the day before.
The employer may release the employee from work during the notice period, with the employee's service counted as continuing until the period ends and the employer bearing what follows from that, in particular the employee's wage for the notice period.
How does Article 75 relate to Article 77?
Notice and compensation are two different things:
Article 75 concerns procedure: written notice for a set period.
Article 77 concerns the reason: if termination is without a legitimate reason, the injured party is entitled to compensation (fifteen days' wage for each year of service under an indefinite contract, with a minimum of two months' wage).
Both can apply together: an employer that ends the contract without a legitimate reason and without notice may face a claim for Article 77 compensation and for the notice period under Article 76, in addition to the end-of-service award. We explain compensation in our article on Article 77 of the Labor Law, and the ways a contract ends in Article 74 of the Labor Law. An employee leaving without notice because of the employer's breach is governed by Article 81 of the Labor Law.
Illustrative example
The figures below are for illustration only. An employee on an indefinite contract with an actual monthly wage of SAR 9,000 served six years, and the employer ended the contract immediately, without notice and without a legitimate reason:
Notice period (60 days) under Article 76: two months' wage = SAR 18,000.
Article 77 compensation: 6 × 4,500 = SAR 27,000 (above the two-month minimum).
End-of-service award under Article 84: (5 × 4,500) + (1 × 9,000) = SAR 31,500.
Conversely, if the employee had left immediately without notice, the employer could claim the thirty-day notice period = SAR 9,000, and the award would be calculated under the rules on resignation or termination by the employee. To estimate your award, use the end-of-service calculator and read our end-of-service award guide.
Practical steps for both sides
If you are an employee who wants to end an indefinite contract:
Give written notice at least thirty days in advance (under monthly pay), stating the reason briefly.
Keep proof of the date the notice was delivered.
Keep working during the period unless the employer releases you in writing.
Read the resignation rules and the notice template in our resignation letter template guide.
If you are an employer:
Make sure there is a documented legitimate reason before terminating.
Give written notice at least sixty days in advance (under monthly pay).
Respect the employee's right to a job-search day during the period, or release the employee from work and pay the notice period.
Settle the employee's dues within a week at most of the end of the relationship under Article 88.
Frequently asked questions
What is the notice period under the Saudi Labor Law now?
Under an indefinite contract with a monthly wage: at least sixty days if the employer ends it, and at least thirty days if the employee does. With a non-monthly wage: at least thirty days for both parties.
Does Article 75 apply to a fixed-term contract?
No. Article 75 is specific to indefinite contracts. A fixed-term contract ends when its term expires, and ending it earlier without justification gives rise to Article 77 compensation.
Can the employer pay the notice period instead of having me work it?
Yes. Article 78 allows the employer to release the employee from work during the notice period, with service counted as continuing until the period ends and the employee entitled to the wage for it.
What if I leave before the notice period ends?
Article 76 provides that the party that did not observe the notice period pays the other party an amount equal to the employee's wage for that period, unless the parties agreed on more.
Is notice enough to end a contract without a reason?
No. The text requires termination to be "for a legitimate reason". If there is no legitimate reason, the other party may be entitled to Article 77 compensation even if the notice period was observed.
In a dispute over notice or termination?
Calculating notice pay, compensation and the award together requires a careful reading of the contract and of the date and reason for termination. Our licensed lawyers represent individuals and companies in labor cases across all regions of Saudi Arabia, in person and remotely.
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Official source: Labor Law — Bureau of Experts at the Council of Ministers
Note: this article is general information about the Saudi Labor Law and is not legal advice for any specific case. Outcomes depend on the contract, the facts and the documents, so we recommend consulting a qualified lawyer before taking any action.
