Article 75 of the Saudi Labor Law stands as a cornerstone governing the employer-employee relationship within the Kingdom of Saudi Arabia. This article aims to regulate the termination process of indefinite-term contracts in a manner that ensures the rights of all involved parties, whether the employee or the employer.
According to this article, each party in an indefinite-term contract must adhere to certain procedures and conditions should they wish to terminate the contract for a valid reason. Providing written notice to the other party is considered one of the most critical conditions, where the notice must be sent before the termination date with a specified period in advance.
One important condition is specifying the notice period, which should not be less than sixty days if the employee's salary is paid monthly, and thirty days if there are variations in monthly payment arrangements. This procedure aims to provide the employee with sufficient time to prepare for the subsequent phase after the contract's termination.
Additionally, the valid reason for contract termination must be declared and explicit. This means that the party wishing to terminate must clearly and comprehensively state the reason in the notice sent to the other party. This procedure ensures that termination is not used as a means to restrict the rights of employees or neglect labor laws.
In conclusion, Article 75 of the Saudi Labor Law emerges as a vital legal tool to safeguard the rights of employees and regulate the termination process of indefinite-term contracts. This article is part of the state's efforts aimed at enhancing justice and transparency in the labor market, contributing to the establishment of a stable and favorable work environment for all.
March 26, 2024
- BY Sultan Alqahtani