[Saudi Arabia] 12,500 leave jobs over termination of contract without valid reason

[Saudi Arabia] 12,500 leave jobs over termination of contract without valid reason
10 Jun 2022

In Saudi Arabia, a total of 12,520 male and female employees left their jobs due to the termination of their work contract without a valid reason during the second half of 2021, Zawya reports.

The figures come from monitoring conducted by Okaz/Saudi Gazette based on government reports. It revealed that 5,761 Saudi employees had submitted their resignations based on Article 77 of the Labor Law, while 6,759 employees were dismissed based on the same article.

The monitoring reportedly revealed that male employees submitting their resignations during the second half of last year accounted for 3,335, while the number of Saudi female employees who tendered their resignations reached 2,426, bringing the total of Saudis who had submitted their resignations under Article 77 of the Labor Law to about 5,761 employees.

Among these employees, those whose contracts were for a fixed period of time must pay compensation to employers for the remaining period of their contracts.

Employees whose terms of contracts are unlimited have to pay compensation equivalent to 15 days of wages for each year of the previous period of the contract. The average number of Saudis who submitted their resignations per day is about 31.

The number of Saudi employees who were dismissed from their jobs based on Article 77 of the Labor Law reached about 6,759 employees, including 4,094 male employees and 2,665 female employees.

According to Article 77, when a contract is terminated by one of the parties (employer or employee) for an unlawful reason, the party affected by the termination of the contract will be entitled to receive compensation equivalent to 15 days’ wages for each year of the worker’s service years if the contract is for an unlimited period of time.

However, if the remaining period of the contract is for a fixed term, the wages for the period will be paid to the affected party, and the article stipulated that the compensation should not be less than the worker’s wages for a period of two months.

As for the Saudis whose contracts were terminated based on Article 80 of the Labor Law, their number during the second half of 2021 accounted for about 15,116 male and female employees, with the average dismissal rate at 82 Saudi men and women per day.

Article 80 of the Labor Law included the right of the employer to terminate the worker’s contract without payment of remuneration.

The major reasons for the termination are identified in the article as follows, “The worker’s assault of his superiors or subordinates; his perpetration of an act that violates someone’s honour or trust; or his carrying out an act that leads to incurring losses for the employer; or his unauthorized absence for an intermittent period of 30 years or 15 consecutive days with a warning or the employee’s disclosure of industrial or commercial secrets.”

The law points out that there will be exemptions in certain specific cases.


Source: Zawya

(Quote via original reporting)

In Saudi Arabia, a total of 12,520 male and female employees left their jobs due to the termination of their work contract without a valid reason during the second half of 2021, Zawya reports.

The figures come from monitoring conducted by Okaz/Saudi Gazette based on government reports. It revealed that 5,761 Saudi employees had submitted their resignations based on Article 77 of the Labor Law, while 6,759 employees were dismissed based on the same article.

The monitoring reportedly revealed that male employees submitting their resignations during the second half of last year accounted for 3,335, while the number of Saudi female employees who tendered their resignations reached 2,426, bringing the total of Saudis who had submitted their resignations under Article 77 of the Labor Law to about 5,761 employees.

Among these employees, those whose contracts were for a fixed period of time must pay compensation to employers for the remaining period of their contracts.

Employees whose terms of contracts are unlimited have to pay compensation equivalent to 15 days of wages for each year of the previous period of the contract. The average number of Saudis who submitted their resignations per day is about 31.

The number of Saudi employees who were dismissed from their jobs based on Article 77 of the Labor Law reached about 6,759 employees, including 4,094 male employees and 2,665 female employees.

According to Article 77, when a contract is terminated by one of the parties (employer or employee) for an unlawful reason, the party affected by the termination of the contract will be entitled to receive compensation equivalent to 15 days’ wages for each year of the worker’s service years if the contract is for an unlimited period of time.

However, if the remaining period of the contract is for a fixed term, the wages for the period will be paid to the affected party, and the article stipulated that the compensation should not be less than the worker’s wages for a period of two months.

As for the Saudis whose contracts were terminated based on Article 80 of the Labor Law, their number during the second half of 2021 accounted for about 15,116 male and female employees, with the average dismissal rate at 82 Saudi men and women per day.

Article 80 of the Labor Law included the right of the employer to terminate the worker’s contract without payment of remuneration.

The major reasons for the termination are identified in the article as follows, “The worker’s assault of his superiors or subordinates; his perpetration of an act that violates someone’s honour or trust; or his carrying out an act that leads to incurring losses for the employer; or his unauthorized absence for an intermittent period of 30 years or 15 consecutive days with a warning or the employee’s disclosure of industrial or commercial secrets.”

The law points out that there will be exemptions in certain specific cases.


Source: Zawya

(Quote via original reporting)

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