Mood: 
OLEP4CL Part IV - Termination of Contract (By Employer and By Worker)
Termination of Contract
Q: When is a contract of employment deemed terminated?
A: An employment contract is deemed terminated in the following events:
a) Expiration of the term or period of contract and the worker express his intention not to renew it.
b) Force majeure;
c) Death of the worker;
d) Death of employer in certain cases;
e) When the workers attain the age of retirement;
f) Total disability of worker to perform work; and
g) Pre-termination of contract by either party.
Pre-termination includes the following:
¡ If both parties agree to terminate the contract, provided that the worker's consent be in writing.
¡ Upon the request of one of the two parties in case of contract of unspecified term.
¡ Termination by the employer or worker for authorized causes;
¡ Resignation by worker;
¡ Serious illness of worker resulting in long absence from work;
¡ Bankruptcy, dissolution and authorized shutdown of employer's business, and other cases. (Arts. 74,77, 79 , 80, 81, 82, , 84, ).
I. VALID GROUNDS FOR TERMINATION BY EMPLOYER
Q: When can employer validly and legally terminate the services of the workers?
A: Article 80 enumerates the valid grounds or just causes for the termination of worker's service, namely:
a) Assault by worker against the employer or against the authorized Manager or any of his supervisors;
b) Failure to fulfill the essential obligations of the contract, or obey legitimate orders, or deliberately fails to observe employer’s legitimate instructions despite written warning;
c) When the worker has committed a misconduct or an act infringing on honesty or integrity;
d) Deliberate commission of any act or negligence with intent to cause material loss to the employer, provided that the latter shall report the incident to the appropriate authorities within 24 hours from being aware of such occurrence.
e) If the worker resort to forgery in order to obtain the job;
f) If the worker is hired on probation;
g) Absence by worker without valid reason for more than 20 days in 1 yr. or for more than 10 consecutive days subject to written warning by employer after 10 days of absence in the first case and five days in the second case;
h) If the worker unlawfully takes advantage of his position for personal gain;
i) If the worker discloses work-related industrial or commercial secrets.
Q: What is the effect of termination of worker's service under the above-mentioned grounds?
A: Under the aforementioned provision of the New Saudi labor Law, the employer may affect the forfeiture of the worker's termination award provided that he gives the worker a chance to explain his reasons or defense.
II. VALID GROUNDS FOR TERMINATION BY WORKER
Q: What are the instances or grounds whereby the worker can validly terminate his services from the employer?
A: The worker may leave his work without serving prior notice in the following cases allowed by law:
a) Non-fulfillment of employer's obligations;
b) If it is proved that the employer or his representative had cheated the worker during the time of hiring with regards to the conditions of works.
c) If the employer requires him to perform work essentially different from the nature of work agreed upon and contrary to the Art. 60 of this law.
d) Assault or immoral act committed by employer or representative or the responsible manager against worker or member of his family;
e) If the employer or one of his family member or his representative or responsible manager has maltreated the worker.
f) If there is a serious hazard known to employer which threatens the safety or health of worker an he failed to take necessary action;
g) If the employer or his representative through his actions and unfair treatment, or breach of the terms of contract, has caused worker to appear as the party terminating the contract. (Art. 81, NLL)
Q: By terminating the contract for any of the aforementioned valid grounds, will the worker forfeit his service award or other indemnity entitled him?
A: No. Article 81 states that the worker may leave his work without prior notice without prejudice to his statutory right in the above-mentioned cases allowed by law.
To avail of this right under Article 81, it is advised however that the worker should present his claims or actions to the competent Labor Office or local authorities for appropriate determination.
Category: New Saudi Labor Law
Tags: Saudi Labor Law
accomplished
