What are the rules for employee termination and end-of-service benefits in Saudi Arabia?

Under Saudi labor law compliance, employers must follow proper termination procedures and calculate end-of-service benefits in Saudi Arabia (ESB) based on tenure. Employees with at least two years of service are entitled to ESB, with half a month’s salary per year for the first five years and one full month’s salary per year thereafter. Companies must also consider Saudization (Nitaqat program) requirements when terminating expatriate workers to maintain compliance. HR outsourcing in Saudi Arabia helps businesses manage layoffs while ensuring legal adherence. Employers must also properly handle Iqama processing in Saudi Arabia when terminating foreign employees to avoid penalties. Many companies rely on payroll services in Saudi Arabia and government relations services KSA to ensure smooth offboarding, prevent disputes, and maintain compliance.