Saudi Labor Law sets out specific grounds and notice requirements for lawful termination, and a dismissal that doesn't meet these requirements can be challenged as unfair, potentially entitling the employee to compensation.
The specific circumstances of a termination — what reason was given, whether proper notice was provided, and what the employment contract itself says — all shape whether a dismissal was lawful. The contract's own termination and notice clauses, drafted under employment contracts, frame this analysis.
End-of-service gratuity is calculated based on years of service and final salary, and it's owed regardless of who initiated the termination in most circumstances, though the specific calculation can vary based on how the employment ended.
Where an employer hasn't paid what's owed, this is generally pursued through the labor courts, and we can calculate what should be owed and pursue payment. A final judgment is then collected through the execution court.
An employer's severance offer, however reasonable it sounds in the moment, is not the same thing as an independently calculated figure based on the actual gratuity formula the law provides — and once an employee signs an agreement accepting a specific severance amount as full and final settlement, going back to claim the difference later becomes considerably harder, if not impossible, regardless of how understandable the original oversight was.
We calculate the actual amount owed before any offer is accepted, precisely so an employee can compare the employer's proposal against an independent, accurate figure rather than simply trusting that whatever's offered reflects what the law actually requires — a comparison that takes very little time but can make a substantial financial difference. Where reported GOSI wages understate real salary, the gratuity base is corrected with our GOSI disputes team.
Not every termination triggers the standard gratuity entitlement in full — Saudi Labor Law recognizes specific, narrowly defined grounds for termination without notice or compensation, and whether a specific dismissal genuinely falls within one of these narrow grounds, or whether an employer is simply asserting cause without actually meeting the legal bar for it, is often the central question in a dispute.
We review the specific reason given for a termination closely against what the law actually requires to justify it, since employers sometimes assert cause where the underlying facts don't genuinely support it, and this distinction can be the difference between an employee receiving full gratuity or none at all.
Termination without the grounds or notice the Labor Law and your employment contract require can be challenged as unfair. We can assess a specific termination against the applicable requirements.
It's based on years of service and final salary, with the specific formula depending on the circumstances of how employment ended. We can calculate what should be owed in your specific case.
Yes — these are often pursued together as part of the same overall claim, since they typically arise from the same termination.
We'd recommend having it independently calculated and verified first — once you sign accepting an amount as final, recovering any shortfall later becomes considerably harder.
Not necessarily — the law recognizes only specific, narrow grounds for this, and employers sometimes assert cause without actually meeting the legal bar. We can review whether your termination genuinely qualifies.
It depends on the specific circumstances and what was actually signed — reach out regardless, since options may still exist depending on your situation.
Expert Riyadh