Hello I worked for a company for 3 years and 9 months. I had a mutual agreement to waive my notice period. I believe the calculations are incorrect. My Salary total is 8900 Saudi Riyal. I worked for 3 years and 9 months. I was terminated under labor law 77, downsizing of the company.
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In Saudi Arabia, according to the Article 87 of the Labor law, end of service benefits are calculated as follows:
1. For the first five years of work, the worker is entitled to half a month's salary for each of the first five years of employment.
2. After the first five years, the worker is entitled to a full month's salary for each additional year.
Moreover, according to Article 85, the payment is calculated based on the worker's last salary. For instance, if your latest salary was 8900 Saudi Riyal, that would be the amount utilised in the protocols mentioned earlier.
In your case, as you've worked for 3 years and 9 months, this results in:
- Half a month's salary for each of the first 3 years (= half of 8900 Riyal * 3).
- Since you have served for 9 months beyond the completed year(s), the benefits for this period will be prorated. It means you will get 3/4 of the half month's salary (= 3/4 of half of 8900 Riyal).
However, an important clause to consider from Article 77 (on which termination was based), indicates that in case of firm-wide downsizing, the employer is obligated to provide the worker with an additional compensation equivalent to the basic wage for a period not exceeding the remaining term of the contract.
Please bear in mind that these calculations are indicative, it would be wise to contact your HR department to verify them.
[Sources: Saudi Labor Law, Article 87, Article 85, Article 77]
1. For the first five years of work, the worker is entitled to half a month's salary for each of the first five years of employment.
2. After the first five years, the worker is entitled to a full month's salary for each additional year.
Moreover, according to Article 85, the payment is calculated based on the worker's last salary. For instance, if your latest salary was 8900 Saudi Riyal, that would be the amount utilised in the protocols mentioned earlier.
In your case, as you've worked for 3 years and 9 months, this results in:
- Half a month's salary for each of the first 3 years (= half of 8900 Riyal * 3).
- Since you have served for 9 months beyond the completed year(s), the benefits for this period will be prorated. It means you will get 3/4 of the half month's salary (= 3/4 of half of 8900 Riyal).
However, an important clause to consider from Article 77 (on which termination was based), indicates that in case of firm-wide downsizing, the employer is obligated to provide the worker with an additional compensation equivalent to the basic wage for a period not exceeding the remaining term of the contract.
Please bear in mind that these calculations are indicative, it would be wise to contact your HR department to verify them.
[Sources: Saudi Labor Law, Article 87, Article 85, Article 77]
3 months ago
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