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zulfi abdulla wrote:

Thank you for the good work, may Allah bless you.   breif: 2 months prior to expiry of contract email to employer informing wish not to renew  the contract and that due to illness needs to return home. Agreed  to extend 3 months to finish up the work, is the  employer entitled to pay 66.67% or should he pay 100% of end of service.

In your case it will be considered as resignation even its a 2 month before the contract, resignation gives loss for the employee and deduction in EOSB, any how below are 7 cenarios for calculating EOSB as per saudi labor law for your case.

Considering total salary of employee is 10,000 which included (Basic + Housing + Transportation and Mobile allowance )to make the calculation more easy  you can calculate as per your salary and time period spend in your company.

1- Resignation in first 2 years EOSB = Zero

2- Resignation between 2 to 5 years
formula :    (10,000 /2) x 4 x1/3 = 6,667/= SAR

3- Resignation between 5 to 10 years
formula : Calculation for first 5 years will be as
( 10,000 / 2 ) x 5 x ( 2/3 ) = 16,667/- for first 5 years
calculation for 6th and 7th year will be
10,000 x 2 x 2/3 = 13,333/-
Total for 7 years will be  16,667 + 13,333 = 30,000/=

4-Resignation after 10 years (11 years completed)
formula : first five years
( 10,000 x 2) x 5 x ( 1/2 ) = 25,000/=
for rest 6 years
10,000 x 6 = 60,000/=
Total :  25,000 + 60,000 = 85,000/=


5- if employee resign AT contract completion.
full EISB which means for first 5 years (Half salary for each year)
rest of the years (One full salary for year year completion.)

6- this related to article 81 under which you do not come as you are resigning by your own will and company is supporting your decission.

7 - This is related to article 87 you are medically unfit but you did not get any permanent disability and your are still alive so this does not imply on you as well.

According to Article 88 employer is obliged to pay the EOSB with in 1 week in case of termination and 2 weeks in case of resignation. In case of failure to pay in 2 weeks you have right to file a case.


Hope you are clear for everything ...

@saqayyum2000

dear brother, my iqama expiry is 02-Jan-2024 but in qiwa employment contract is for 1 year from Nov21-Nov22 and renews for every 1 year unless renew the contract 60 days before the contract expires.

I have resigned on 08-Aug-2023.

can you please tell me which date (iqama expiry or contract renew) is considered for penalty calculation remaining months

During resignation in qiwa, Sorry, this service is only available to foreigner laborers whose have completed a year from entering the Kingdom