Question

Course: introduction to HRM Ahmed resigned from his job after 6 years and 10 months. He is very angry with his company, because he got a lower “End-of-service” benefit than he expected. Explain the Ahmed what his rights are, according to the Saudi labor law?

Answer 1

The “End of Service” (ESB) benefits are applicable for those employees who completes at least two years of service with the organization in Saudi Arabia. The entitlement are different in case like when employer terminates the employee or the employee resigns the job. In case of employee resigning the job , if the years of service is between 2 to 5 years that employee is entitled for 1/3^rd of half salary as ESB award or 16.67 % of the salary. In case between 5 to 10 years of service then then entitlement becomes as two-third of full salary (i.e. for first 5 years is 33.33% and next 5 years as 66.67%) and Above 10 years of salary, it is the full entitlement (i.e. first 5 years as 50% and next 5 years as 100%). In case employer terminates the employee than the entitlement remains full (if years of service is less than 5 years than 50% of the salary and if more than 5 years than for first five years as 50% and after 5 years as 100%). Therefore, Ahmed falls under the category of two third entitlement of the full salary.