Cancelation of contract

1968AB wrote:

Dear Sir,

My end of contract is on March 20, 2015. My resignation signed by my employer and I will be leaving on first week of April.
I have a job offer from other company and I signed a new contract. The effective date of my contract is on March 21, 2015.
I have a question: If i cancel the new contract from my new employer what will be the legal risk.Can they file a case against  me in Ministry of Labor? My previous employer offered me salary adjustments and asking me to continue my contract with them. What advise can you give to solve this problem?



edmags1968

;

Your query is a bit confusing!

What's clear to me however is this:
1. Most companies, if not all, in Saudi Arabia doesn't allow an employee to work for other companies. hence if you signed a new contract, date inclusive to your existing contract, then there is a violation. This can be a breach of contract.

2. There's a difference between "letter of resignation" and "letter of notice for not renewing your contract".

If you resigned (cancelled your contract), depending on what is written in your contract, the company have the right to ask for payment from you computed on remaining months of your existing contract. Also, mostly your end of service bonus will be forfeited, all fees incurred by the company will be refunded. Again, this is depending on the contract.

If you just, however, just gave your notice letter (two months or a month prior to expiry of contract) then there is no breach of contract.

3. Some companies (according to other forums) are already implementing the two year ban for expats who are filing their final exits. You can try to request for "no objection certificate" from your employer but again I'm not sure how this thing work.

Again, if you are in doubt, you must always refer to your contract.

Good luck.