Legal Axis
Employment

What is an employee entitled to at end of service?

2026-05-02

When an employment relationship ends — whether by resignation or termination — Saudi labor law guarantees the employee specific entitlements.

End-of-service gratuity is calculated based on final wage and length of service, and the applicable rate differs depending on whether the employee or employer initiated the termination, and whether certain conditions are met.

Beyond the gratuity, an employee is typically entitled to compensation for unused leave, any outstanding dues, and in specific cases, compensation for unjustified dismissal if established.

It's important that the reason for termination is documented precisely, since that documentation is often decisive in any subsequent claim before the relevant authorities.

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