Resignation, Termination & Probation Rights in Saudi Arabia

A law in Saudi Arabia (Council of Ministers Decision No. 117, and Council of Ministers Decision No. 633) updated resignation rights and employment contract requirements. These changes impact notice periods for resignations, employer obligations, probation terms, and contract rules for non-Saudi employees.

Key changes

• Employees on fixed-term contracts can now resign with 30 days’ notice.
• Employees on unlimited-term contracts can resign with 30 days’ notice (reduced from 60 days).
• Employers must still give 60 days’ notice when terminating an unlimited-term contract.
• Non-Saudi employees must have a written fixed-term contract—verbal agreements are no longer valid.
• Probation periods can now last up to 180 days (previously limited to 90 days unless extended).

What does this mean for Employers?

• Resignation timelines: Employers must acknowledge an employee’s resignation within 30 days. If they do not respond, the resignation is automatically accepted.
• Postponing resignations: Employers can delay a Fixed-term employee’s resignation by up to 60 days, but only with a written explanation for business reasons.
• Contract requirements: Employers must ensure that all non-Saudi employees have written fixed-term contracts to comply with the law.
• Termination obligations: The employer notice period for terminating an unlimited-term contract remains 60 days.
• Extended probation periods: Employers can now place employees on probation for up to 180 days in the employment contract without requiring a separate agreement with the employee, allowing more time to assess new hires.

What does this mean for Employees?

• Resignation flexibility: Employees can now resign from fixed-term and unlimited-term contracts with 30 days’ notice.
• Resignation process: For fixed-term contracts, if an employer does not respond within 30 days, the resignation is automatically accepted.
• Delays in resignation: For fixed-term contracts, employers can still postpone resignations for up to 60 days for business reasons, but they must provide a written explanation.
• Withdrawing resignation: Employees can withdraw their resignation within 7 days, unless it has already been accepted.
• Non-Saudi employees: Must have a written fixed-term contract—verbal agreements are no longer valid.
• Longer probation periods: Employees may now be placed on probation for up to 180 days, providing both the employer and employee with an extended period to assess long-term suitability.

FAQs

How much notice do employees need to give when resigning?

Employees on fixed-term and unlimited-term contracts must provide 30 days’ notice.

Can an employee resign before their fixed-term contract ends?

Yes, but:

• The employer has 30 days to respond. If they do not respond, the resignation is automatically accepted.
• Employers can delay the resignation for up to 60 days (with a written explanation).
• Employees can withdraw their resignation within 7 days, unless it has already been accepted.

Has the employer’s notice period for terminations changed?

No. Employers must still provide 60 days’ notice when terminating an unlimited-term contract.

What happens if an employer does not respond to a resignation request?

If 30 days pass without a response, the resignation is automatically accepted.

What are the new requirements for non-Saudi employees?

All non-Saudi employees must have a written fixed-term contract—verbal agreements are no longer valid.

How has the probation period changed?

Under the new amendments, probation can be set for up to 180 days from the start, giving both employers and employees more time to determine the best fit.