What the article says
Article 75 governs ending an open-ended (indefinite-term) contract at the will of one party. It requires a legitimate reason and written notice to the other party before the termination date, for a period that depends on how the wage is paid and who ends the contract:
30 days' notice
From the worker to the employer, where the wage is paid monthly.
60 days' notice
From the employer to the worker, where the wage is paid monthly.
30 days' notice
From either party, where the wage is not paid monthly.
These periods are minimums: the text says "at least". Paragraph 1 of the article reads:
"If the contract is for an indefinite term and the wage is paid monthly, either party may terminate it for a legitimate reason, as follows: (a) if the termination is by the worker, the worker must give the employer written notice at least thirty (30) days before the termination date; (b) if the termination is by the employer, the employer must give the worker written notice at least sixty (60) days before the termination date."
Article 75, paragraph 1, Saudi Labor Law, as amended by Royal Decree M/44. Unofficial working translation for awareness only; the official text is the Arabic published by the Bureau of Experts at the Council of Ministers.
What changed in 2025?
The previous text left the notice period to the contract, with a floor of 60 days where the wage was paid monthly and 30 days otherwise, the same for both parties. The current text treats the parties differently where the wage is monthly: 30 days from the worker and 60 days from the employer, and it no longer refers to a period set in the contract.
Is a worker ending the contract with notice a resignation?
The 2025 amendments also added a definition of resignation to Article 2:
"Resignation: the worker's written disclosure, without coercion, of the wish to end a fixed-term employment contract, not made subject to any restriction or condition, and the employer's acceptance of it."
Article 2 (definitions), Saudi Labor Law, as added by Royal Decree M/44. Unofficial working translation for awareness only; the official text is the Arabic published by the Bureau of Experts at the Council of Ministers.
The definition refers to a fixed-term contract. The text does not call a worker ending an open-ended contract with notice under this article a resignation; paragraph 3 of Article 74 lists it as a separate way a contract ends. This matters for the award: the Article 85 shares apply to resignation from a fixed-term contract, while for a worker who ends an open-ended contract with notice the site calculator shows the full Article 84 award, which is what the Qiwa calculator returned in a check on 28 September 2026.
This is a reading of the text, not an express rule in it. To confirm, the official references are the Qiwa end-of-service calculator and the Ministry of Human Resources and Social Development.
Article 76: when the notice period is not observed
If one party ends the open-ended contract without observing the notice period set under Article 75, that party must pay the other party, for the notice period, an amount equal to the worker's wage for the same period, unless the parties agree on more. The wage in the Law is the actual wage, as defined in Article 2.
"If the party who terminated the indefinite-term contract does not observe the notice period set under Article 75 of this Law, that party must pay the other party, for the notice period, an amount equal to the worker's wage for that same period, unless the parties agree on more."
Article 76, Saudi Labor Law, not amended by Royal Decree M/44. Unofficial working translation for awareness only; the official text is the Arabic published by the Bureau of Experts at the Council of Ministers.
Article 78: during the notice period
- Looking for work: where notice comes from the employer, the worker may be absent during the notice period for one full day a week, or eight hours during the week, to look for other work, and is paid for that day or those hours. The worker chooses the day and hours, provided the employer is told at least the day before.
- Release from work: the employer may release the worker from work during the notice period, with the service counted as continuous until the period ends and the worker entitled to the wage for it.
Who it applies to
The Labor Law applies to every employment contract under which a person works for an employer, under the employer's management or supervision, for a wage (Article 5). That covers private-sector employees, men and women, Saudi and non-Saudi.
Article 75 covers open-ended contracts only. A fixed-term contract ends when its term expires and has its own rules in Article 55 and Article 77.
The Law does not cover the groups excluded by Article 7, among them domestic workers and those in a similar position, agricultural workers and private shepherds, and players and coaches of sports clubs and federations; some of these groups have special regulations. This explainer does not cover civil servants or military personnel, who have their own systems.
A hypothetical example with round numbers
The figures below are hypothetical and for illustration only. A worker on an open-ended contract earns an actual wage of SAR 10,000, paid monthly. A month in the Law is thirty days unless the employment contract or the work regulations say otherwise (Article 2).
- The employer ends the contract for a legitimate reason with no notice at all: outside the cases allowed by Article 80, the employer must pay the worker an amount equal to the wage for 60 days, SAR 20,000 (Article 76).
- The worker ends the contract with no notice at all: outside the cases allowed by Article 81, the worker must pay the employer an amount equal to the wage for 30 days, SAR 10,000 (Article 76).
- The employer gives written notice 60 days ahead: during that time the worker may take one paid day a week to look for other work (Article 78).
- Termination for an illegitimate reason: compensation for it is governed by Article 77.
Hypothetical example for illustration only; it does not describe any individual case. To estimate a notice period, use the notice period calculator. It gives a guidance estimate only, not a legal opinion.
Common misconceptions
- "Notice is 60 days for both sides." Before 19 February 2025 the text left the period to the contract, with a floor of 60 days for both parties on a monthly wage. With a monthly wage it is now at least 30 days from the worker and at least 60 days from the employer.
- "Telling the other side verbally is enough." The text requires written notice.
- "Article 75 applies to every contract." It covers open-ended contracts only. To see when a fixed-term contract becomes open-ended, read Article 55.
- "Giving notice removes the need for a legitimate reason." The text frames termination as "for a legitimate reason", and compensation for termination for an illegitimate reason is governed by Article 77.
- "Skipping the notice has no consequence." Article 76 requires the party who skipped it to pay the other an amount equal to the worker's wage for the notice period.
Related articles
- Article 74: the cases in which a contract ends, including the will of either party in an open-ended contract, and resignation with its procedure in Article 79 bis.
- Article 55: the end and renewal of fixed-term contracts.
- Article 77: compensation when a contract ends for an illegitimate reason.
- Article 80: the cases in which the employer may terminate without award, notice or compensation.
- Article 81: the cases in which the worker may leave without notice and keep all statutory rights.
- Articles 84 to 88: the end-of-service award and the deadline to settle entitlements.
Official source
The full text of the Labor Law and its amendments is published on the Bureau of Experts at the Council of Ministers portal. The Arabic text published there is the official reference. Text checked on 28 September 2026.