Notice Period in Saudi Arabia: What the Labor Law Requires

A notice period is the time between telling the other party that an employment contract will end and the day it actually ends. Under the Saudi Labor Law, as amended with effect from 2025, either side can end a contract of indefinite term for a valid reason, stated in written notice: at least 30 days when the worker ends the contract, and at least 60 days when the employer ends it. If the notice is not given, or not completed, the party that skipped it owes the other compensation equal to the worker’s wage for the notice period, or for the part that was not served.

Rules change, so check the current Labor Law text on the website of the Ministry of Human Resources and Social Development before acting on a specific case.

What a notice period is

The notice period protects both sides from a sudden end to the working relationship. It gives the employer time to arrange a handover and a replacement, and the worker time to look for a new job while still being paid. During the notice period the contract is still in force: the worker keeps working, and the employer keeps paying the agreed wage and benefits.

HR teams call it a “resignation notice” when the worker leaves and a “termination notice” when the employer ends the contract: in both cases, a written statement that the contract ends on a known date.

When notice applies: indefinite and fixed-term contracts

The Labor Law’s notice rules are written for contracts of indefinite term, which have no end date. Either party may end such a contract, but only with written notice, and the law links the ending of the contract to a valid reason that the notice should state. Ending an indefinite contract without a valid reason can expose the party that ends it to compensation beyond the notice pay, so the reason matters as much as the dates.

A fixed-term contract works differently. It ends on its own when its term expires, so no termination notice is needed for that. Ending it before its end date is not a notice question but an early termination, and the Labor Law and the contract decide what compensation, if any, is owed. Some fixed-term contracts also have their own clause on notice of renewal or non-renewal, so read the contract first.

There are also exceptions. The Labor Law lists specific cases in which the employer may end the contract without notice, such as certain serious breaches by the worker, and cases in which the worker may leave without notice and keep their legal rights, such as certain serious breaches by the employer. These cases are narrow and have conditions, and separate rules apply during probation. Check the current text before relying on any exception.

Notice periods after the 2025 amendments

The amendments to the Labor Law that came into force in 2025 set the notice period for a contract of indefinite term according to who ends the contract:

• When the worker ends the contract: at least 30 days’ notice.
• When the employer ends the contract: at least 60 days’ notice.

These are minimums: a contract may set a longer period, and it is then read together with the law. A clause that sets a shorter period than the law requires is a warning sign, so take advice before relying on it. Before the amendments, the periods depended on how the worker was paid, so older contracts and internal policies may use wording that no longer matches the law.

How to give written notice

Notice must be in writing; a phone call or a word in a meeting is not enough. A good notice letter contains:

1. The names of the employer and the worker, and the worker’s ID or iqama number.
2. A clear statement that the contract will end, and which party is ending it.
3. The reason for ending the contract.
4. The date the notice is given and the expected last working day.
5. Instructions for the handover, the return of company property and the final settlement.
6. The signature of the person giving notice.

Keep proof of the date the other party received the notice: a signed copy, an acknowledged email, or a message through the company’s official HR system. If the worker refuses to sign, record the delivery in another way that can be proved, such as an email to their registered address and a witnessed note on file. A notice that cannot be proved can turn into a dispute about dates.

Pay during notice and pay in place of notice

During the notice period the worker is still an employee: they keep doing the job, and the employer keeps paying the full wage and contractual benefits until the last day. Other dues, such as the leave balance and the end-of-service award, are settled under the Labor Law when the contract ends.

Pay in place of notice is the other side of the rule: a party that does not give the required notice, or ends the relationship before the period is over, owes the other party compensation equal to the worker’s wage for the notice period or for the part not served. In practice:

• If the employer wants the worker to leave at once, it pays the wage for the full notice period, or what remains of it, as compensation.
• If the worker leaves without serving the notice, the worker owes the employer the same type of compensation. Settling that amount against the worker’s dues must respect the Labor Law’s rules on deductions, so take advice before deducting anything.
• If both sides agree in writing on a different last day, record the agreement and the reason, and check that it does not reduce the worker’s rights under the law while the contract is still running.

The current law text explains which wage is used for the calculation; check it, and the contract, before you finalize the amount.

How HR records the notice period

A notice period touches several records, and they should all tell the same story:

1. Save the signed notice letter and the proof of delivery in the employee’s file.
2. Record the notice date, the party that gave notice, the reason and the last working day in the HR system.
3. Plan the handover and the return of company property.
4. Prepare the final settlement: wages up to the last day, any pay in place of notice, the leave balance and the end-of-service award, calculated under the Labor Law.
5. Update the contract status on Qiwa when the contract ends, following the steps the platform shows.
6. Update the worker’s records with the General Organization for Social Insurance (GOSI) and in the payroll file on Mudad, so the last salary and the end date match.
7. For a non-Saudi worker, handle the next step through the relevant platforms, such as Qiwa for a transfer of services or Muqeem for exit procedures.

Keep the file for as long as your record-keeping policy and the regulations require; in a dispute, it is your evidence.

Common mistakes

• Using the old periods. Templates written before 2025 may not match the law.
• Giving notice verbally. Without written notice and proof of delivery, the dates can be challenged.
• Applying notice rules to a fixed-term contract. Ending it early is a different question.
• Leaving out the reason. It weakens the employer’s position if the termination is challenged.
• Stopping pay during notice. The contract stays in force until the last day.
• Records that do not match. The end date in the HR file, on Qiwa, with GOSI and in payroll should be the same.

Frequently asked questions

If you would like a second view on a notice letter, a contract clause or a final settlement, Innovant’s HR advisors can review it with you.

Related reading: Amicable Settlement of Labor Disputes in Saudi Arabia: Employer Guide · Saudi Labor Law Compliance Guide for Investors and Companies · Guide to Job Search Allowance and Compensation Rights Under Saudi Labor Law

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