A ready-to-copy resignation letter template, plus the amended Saudi Labor Law rules: when a resignation is accepted, withdrawal, and end-of-service pay.
Short answer: A resignation letter must be written, explicit, free of coercion, not conditional, and must not set a deferred effective date. Under the amended Labor Law, a resignation is deemed accepted if thirty days pass without a reply from the employer; the employer may defer acceptance for up to sixty days with a written explanation, and you may withdraw within seven days unless it has already been accepted.
Resigning looks simple: a short letter and a signature. But how the letter is worded, when it is submitted and what type of contract you have all affect the date your employment ends and the end-of-service award you receive. The Labor Law amendments issued by Royal Decree M/44 dated 8/2/1446 AH, in force from 20/8/1446 AH, added new rules on resignation. This guide sets out those rules as they appear in the text and then provides a ready-to-copy resignation letter. If you are in a dispute with your employer over your resignation or your dues, see our labor lawyer service.
How does the Labor Law define resignation?
The amendments added to Article 2 of the Labor Law a definition of resignation, which reads in translation:
"Resignation: the employee's written expression, without coercion, of the wish to end a fixed-term employment contract, without making it subject to any restriction or condition, and the employer's acceptance of it."
From this definition come the conditions of a valid resignation:
In writing: a verbal resignation is not enough.
Free will: without coercion or pressure.
Unconditional: do not write, for example, "I resign if our salaries are not raised".
Employer acceptance: either expressly, or deemed by the passage of time as explained below.
The amendments also added "resignation" to the cases in which an employment contract ends under Article 74 of the Labor Law, as paragraph 3 bis.
Is resignation different under fixed-term and indefinite contracts?
The statutory definition refers to ending a fixed-term contract. For an indefinite contract, amended Article 75 of the Labor Law governs termination by either party for a legitimate reason with written notice. The part concerning the employee 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."
Where the wage is not paid monthly, the notice is also at least thirty days for both parties.
When is a resignation accepted? Article 79 bis
The amendments added a new Article 79 bis, which reads in translation:
"1. A resignation request is deemed accepted if thirty days pass from its submission without a reply from the employer. The employer may defer acceptance of the resignation for no more than sixty days if the needs of the work so require, by a reasoned written explanation given to the employee, provided the deferral is made before the thirty days referred to in this paragraph expire. The deferral period runs from the date the explanation is given to the employee.
The employment contract ends by resignation on the date the employer accepts it, or when the thirty days referred to in paragraph (1) pass without a reply from the employer, or when the deferral period referred to in paragraph (1) expires.
The employee may withdraw the resignation request within no more than seven days of its submission, unless the employer accepted it before the withdrawal.
A deferred effective date may not be set in a resignation request.
The employment contract remains in force while the resignation request is pending, and both parties must perform all obligations arising from it during that period.
An employee whose contract ended by resignation is entitled to all rights established under this Law."
What do these rules mean in practice?
Silence means acceptance: if thirty days pass from submission without a reply, the resignation is deemed accepted.
Deferral has conditions: no more than sixty days, for the needs of the work, by a reasoned written explanation, given before the thirty days run out. A verbal or late deferral does not meet these conditions.
A chance to change your mind: you may withdraw within seven days of submission, unless the employer accepted before you withdrew.
No deferred date: do not write a future effective date for the resignation in the letter.
The contract continues: you remain bound to work, and the employer remains bound to pay, throughout the request period.
How much end-of-service award do you get on resignation?
Article 85 provides that where employment ends because the employee resigns:
Less than two consecutive years: no award.
Two to five years: one third of the award.
More than five and less than ten years: two thirds of the award.
Ten years or more: the full award.
As an exception, Article 87 provides for the full award if the employee leaves because of force majeure beyond the employee's control, and a female employee receives the full award if she ends the contract within six months of her marriage contract or three months of giving birth.
Illustration only: an employee served four years and his last actual wage was SAR 9,000. The full award under Article 84 = 4 × 4,500 = SAR 18,000. Because he resigned with service between two and five years, he receives one third = SAR 6,000. Had he waited until his service exceeded five years, he would have received two thirds of a larger award. So calculate before deciding with the end-of-service calculator, and read our end-of-service award guide.
After the contract ends, Article 88 requires the employer, where the employee ended the contract, to settle the employee's dues in full within no more than two weeks.
Resignation letter template (fixed-term contract)
Replace the text in brackets with your details. The template is written to meet the statutory conditions: in writing, explicit, unconditional and without a deferred date.
Date: [..]
To: [Employer name / Human Resources] — [Company name]
Subject: Resignation request
Dear Sir or Madam,
I hereby submit my resignation from my position as [job title], employee number [..], of my own free will and without any coercion.
I thank you for the time I have spent working with you, and I confirm that I will continue to perform my duties and hand over everything in my custody while this request is being considered, in accordance with the Labor Law.
Please provide me with confirmation that the resignation has been accepted, settle my statutory dues once the contractual relationship ends, and issue my service certificate.
Name: [..]
ID/Iqama number: [..]
Signature: [..]
Notice template for an employee ending an indefinite contract (Article 75)
Date: [..]
To: [Employer name / Human Resources] — [Company name]
Subject: Notice of termination of employment contract
Dear Sir or Madam,
I hereby give notice of my wish to end my indefinite employment contract as [job title], employee number [..], because of [reason], in accordance with Article 75 of the Labor Law, with my last working day falling after the statutory notice period expires [or the period set in the contract if longer].
I will continue to perform my duties and hand over everything in my custody during the notice period. Please settle my statutory dues and issue my service certificate when the relationship ends.
Name: [..]
ID/Iqama number: [..]
Signature: [..]
If you are leaving because of late wages or an essential breach by the employer, do not write an ordinary resignation letter before reading our article on Article 81 of the Labor Law, because an ordinary resignation may reduce your award.
Tips before you resign
Calculate your award before submitting, and watch your length of service: the difference between four years and five years and one month can be significant.
Submit the letter in a way that proves the date: official email, the company's HR system, or hand delivery with a signed receipt.
Keep a copy of the letter and proof of the submission date, because the thirty-day and seven-day periods run from it.
Check your contract: does it set a longer notice period, a non-compete clause or obligations to hand over company property?
Do not sign a final release before confirming that all your dues have been paid.
If the employer refuses the resignation or delays your dues, the claim route starts with amicable settlement at the Ministry of Human Resources.
Frequently asked questions
Can the employer refuse a resignation?
The text deems a resignation accepted once thirty days pass without a reply, and allows the employer to defer acceptance for a maximum of sixty days with a reasoned written explanation.
Can I withdraw my resignation?
Yes, within seven days of submitting it, unless the employer accepted it before you withdrew.
Am I entitled to an award if I resign before two years?
Under Article 85, there is no award if your service is less than two consecutive years, unless one of the Article 87 cases applies.
Do I keep working after submitting my resignation?
Yes. The Law provides that the contract remains in force while the resignation request is pending, and both parties remain bound by all their obligations during that time.
Do I have to give a reason for resigning?
The statutory definition of resignation does not require a reason. Ending an indefinite contract under Article 75, however, is "for a legitimate reason", so state the reason briefly in the notice.
In a dispute over your resignation or your dues?
Delayed acceptance, an award calculated below what is due, or confusion between resignation and leaving under Article 81 are all matters worth reviewing before you sign. 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 and the two templates are general information about the Saudi Labor Law and are not legal advice for any specific case. Adapt the template to your contract and circumstances, and consult a qualified lawyer before taking any action.
