In Saudi Arabia, employers must pay End-of-Service Benefits (ESB) to their employees when their job ends, whether they quit or get fired. The Saudi labor law end-of-service calculator helps workers figure out how much money they’ll get. But calculating these benefits can be tricky because there are many things to consider.
This article will break down the Saudi labor law end-of-service so you can understand your rights and responsibilities. We’ll walk you through how to use the calculator and explain the rules that apply
Your Gratuity Amount:
1. Termination Due to Misconduct or Serious Negligence
If an employee is let go because of serious misconduct, negligence, or breaking company rules, they typically don’t qualify for ESB. This rule applies to any major breach of contract or workplace policies.
2. Resigning Within the First Two Years
There's an exception: If you're terminated due to circumstances beyond your control (like a force majeure), you'll get the full gratuity, regardless of your service length.
3. Partial ESB for Resignation Between Two and Five Years
If an employee resigns after two years but before reaching five years of service, they can receive one-third of the total ESB. This partial payment is a way to recognize their contribution, even if they leave before the five-year mark.
4. Reduced ESB for Resignation Between Five and Ten Years
For employees who resign after five years but before completing ten years, the benefit increases. In this case, they’re eligible for two-thirds of the total ESB, a step up from the partial amount provided after two years.
5. Full ESB for Resignation After Ten Years
Employees who stay with their company for ten years or more and then resign are entitled to the full ESB. This full payout is a reward for their long-term commitment to the company.
It’s always a good idea to talk with an HR specialist or a legal advisor to get clear, accurate advice tailored to your situation. Saudi labor laws may change over time, so it’s wise to keep updated on any new regulations.
Planning for Your Financial Future Understanding these conditions helps employees in Saudi Arabia better plan for their financial future. Knowing what you’re entitled to makes it easier to set realistic financial goals and ensure you get the benefits you’ve earned.
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