The notice period is the lead time a party must give before ending an indefinite-term employment contract. Under the Saudi Labor Law issued by Royal Decree M/51, as amended by Royal Decree M/44 of 1446H, effective 19 February 2025, the working rule is simple: 30 days when the worker terminates and 60 days when the employer terminates, where the wage is paid monthly. This page is general legal information, not legal advice.

The statutory periods: the 30/60 rule

Terminating an indefinite-term contract at the will of one party is subject to the notice and legitimate-cause rules under Article 75 of the Labor Law. The length turns on how the wage is paid and which party terminates:

| Scenario | Notice period | | --- | --- | | Indefinite-term contract, monthly wage, terminated by the worker | 30 days | | Indefinite-term contract, monthly wage, terminated by the employer | 60 days | | Wage not paid monthly — either party terminates | 30 days |

A fixed-term contract works differently: it ends by the expiry of its term unless it is renewed or the parties continue performing it in a way that carries statutory effect, so the 30/60 rule does not carry over automatically.

Pay in lieu of notice

A party that fails to observe the notice period pays the other an amount equal to the worker's wage for the notice period or its remainder, unless the parties agreed on more. The rule cuts both ways: it binds a worker who walks out without notice and an employer who terminates without granting the period.

A simple worked example: a worker on an indefinite-term contract with a monthly wage of SAR 10,000 is terminated by the employer with no notice at all. Pay in lieu equals 60 days' wage — two full months: 10,000 x 2 = SAR 20,000. Had the worker left without notice instead, the amount would equal 30 days' wage: SAR 10,000.

Notice pay versus unfair-dismissal compensation

The two are commonly confused, but they are distinct entitlements:

  • Notice pay compensates only for the missed notice period, regardless of whether the cause of termination was legitimate.
  • Article 77 compensation applies to termination without a legitimate cause: where the contract sets no specific compensation, it is 15 days' wage per year of service for an indefinite-term contract, or the wage of the remaining term for a fixed-term contract, with a minimum of two months' wage in either case.

A worker may be owed notice pay alone, or notice pay plus Article 77 compensation, depending on the cause of termination and how it was carried out. Neither cancels other dues such as unpaid wages, leave encashment, or the end-of-service award where earned — the latter can be estimated with the end-of-service calculator.

By contrast, Article 80 lists narrow cases where the contract ends without an award, notice, or compensation — such as assault, material breach of obligations, violating safety instructions after a warning, or absence under the statutory conditions — with the worker able to contest. Writing "dismissed under Article 80" in a termination decision is not enough; the employer must prove the facts and that the ground applies.

What if the notice or the pay is disputed?

The statutory path for a labor dispute usually starts with amicable settlement at the Ministry of Human Resources and Social Development, the first stage for bridging the parties' positions. If no settlement is reached, the claim is referred to the Labor Court within 21 working days of the first session. Once the employment relationship ends, Article 88 requires the employer to settle the worker's entitlements within one week when the employer ended the contract, and within no more than two weeks when the worker ended it. More labor topics are in the labor section.

When do you need a licensed lawyer?

The rules above are the general framework, but some situations become fact-specific and turn on each case's documents: a dispute over whether the contract is fixed-term or indefinite, a termination citing Article 80 where the facts are contested, notice pay overlapping with Article 77 compensation and other dues, or contract clauses agreeing to different periods or amounts. In those situations, a licensed lawyer can assess the documents and facts before any step is taken, and the Labor Court hears the dispute where no settlement is reached.