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April 14, 2024 - BY Mohamed Abdulaziz

The Worker's Rights at the End of Service: Understanding Article 84 of the Saudi Labor Law

Based on Article 84 of the Saudi Labor Law, the law stipulates the right of the worker to receive an end-of-service gratuity upon termination of their employment relationship with the employer. In this context, the role of the law comes into play in determining the procedures and amounts due to the worker based on their length of service.


Regarding the calculation of the gratuity, it is computed based on the worker's final salary. As per the article, half a month's salary is calculated for each year of the first five years of service, while a full month's salary is calculated for each year thereafter. This means that the longer the worker's tenure, the higher the gratuity they are entitled to.


It is also important to note that the gratuity should be calculated based on the proportion of time the worker spent working during each year. This means that if the worker spent part of the year working, this portion should be accounted for in the gratuity based on the percentage of time they spent working.


These provisions highlight the importance of fairness and equality in the employer's treatment of workers, as the law encourages the appreciation and provision of rights due to the worker based on their efforts and length of service, thereby enhancing the level of trust and stability in the work environment.

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