Reasons for Termination In Saudi Arabia and Their Solutions

Reasons for Termination In Saudi Arabia and Their Solutions

Saudi Arabia is a very sensitive place to terminate an employee for any reason. The law of the land is strict and being an employer, you have to abide by the rules and regulations. You cannot terminate anyone without valid reasons. This includes both Saudis and foreign employees. You are not even allowed to fire someone if they are sick or absent from work.

Reasons for the Termination in Saudi Arabia and their Solutions

Termination in Saudi Arabia is unique in comparison to many other countries where employees may be terminated. In Saudi Arabia, the termination process differs depending on whether the employer or employee terminates the relationship, and whether the employee is Saudi or a third (non-Saudi) national.

You (as an employer) are permitted to terminate an employee for any of the following reasons outlined below:

1. If the employee is not able to do his job properly, it means that he is incapable of doing his tasks.

2. If the employee has been absent from work without permission.

3. If the employee doesn’t follow the rules and regulations of the company or doesn’t follow the instructions given by the manager or superior.

4. If there is a conflict between the employer and employee and they don’t want to work together anymore then also termination can be done.

5. If any employee has been involved in any kind of illegal activity like theft then also employer can terminate him legally without giving any notice period.

It is not only employers who can terminate employment contracts, but also employees. If one of these situations occurs, the employee may request a termination:

1. If the employer fails to address serious issues or problems the employee is facing, then the employee can request a termination of their contract.

2. Employers must agree to provide employees with any needed medical records in case of a transfer or termination of employment.

3. If the employer does not abide by their responsibilities as an employer and does not pay their employee for a period of time exceeding 90 days, then the employee has the right to terminate their contract.

4. An employee has the right to terminate their contract if they find that the work conditions have changed significantly from what was agreed upon in the original contract.

5. The employee can request termination if they need to leave Saudi Arabia for an emergency reason such as the death of a close relative or a major illness in the family.

6. In case of harassment, whether it be sexual harassment or any other type, an employee has every right to request termination and exit Saudi Arabia immediately without having to go through any legal procedures.

If an employer would like to terminate an employment contract with their employee, then they are required to give a notice period prior to terminating the contract or they should pay indemnity upon termination if they do not follow up on this rule.

The procedures of terminating an employee in KSA differ according to his or her nationality and whether he or she is a blue-collar worker, white-collar worker, or manager/executive.

There are many reasons behind this increase in the termination rate. For example, the recent economic situation in Saudi Arabia is one of the main causes of termination; as we know, companies tend to cut their expenses during hard times, which leads them to terminate employees.

Moreover, the lack of government support for new projects and new companies was another reason behind the recent increase in termination rates; as we know, many new projects fail in their first few years (due to lack of government support), which leads to a higher percentage of employees being terminated from their jobs.

Termination Reasons According to Article 77 of the Saudi Labor Law

The Saudi Labor Law provides many reasons for employers to terminate their employees. Article 77 of the Saudi Labor Law states:

“In the event that an employee commits a breach of contract and is notified in writing by his employer to remedy such breach within a period not exceeding fifteen days, and if he fails to rectify such breach within the said period, or repeats such breach within six months from the date of its first occurrence, he shall be deemed to have committed another breach. The employee may be dismissed without notice or wages in lieu thereof.”

Employers must notify their employees in writing about any breaches of contract and give them at least 15 days to correct any mistakes or issues. Once this is done, employers may terminate their employees without notice or any compensation.

Termination Reasons According to Article 74 of the Saudi Labor Law

Under Article 74 of the Saudi Labor Law, an employer is permitted to terminate an employee for one of the following reasons:

1. The employee commits a serious error that causes material harm to the company or its reputation.

2. The employee is drunk or uses drugs during working hours, which causes harm to the employer’s establishment or a person working there.

3. The employee is convicted by a final court judgment for an offense that dishonors him in the place of work, provided that the nature of his work justifies such conviction.

4. If a female employee marries after commencement of employment and does not notify her employer within one month from the date of marriage.

5. If a female employee becomes pregnant, she must notify her employer within one month from the date of pregnancy (unless she was appointed on probation). Failure to notify her employer within this period, as well as concealing such information, will result in termination without notice.

Solutions to Resolve the Termination Problems

The solution to this problem is simple: good communication between management and employees, as well as better pay and working conditions.

Furthermore, there are some other solutions to this problem; for example:

Government sponsorship for new projects and new companies can help solve this problem by creating job opportunities for people who have been terminated from their jobs.

The government should provide more financial aid to people who have been terminated from their jobs so they can start a small business or find another job.

Final Words

In this article, we discussed some of the reasons that lead the employment to terminate you before your contract is completed. As you read this article and if you are in Saudi Arabia, you can take steps to protect yourself from these terminations.

The termination of employees is a duty that the employer must perform. It is necessary due to several reasons, such as economic crises and laying off the surplus workers in order not to cause human losses in the factory or in all sectors.

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