Employment contract stated “RENEWABLE” after a year with same particulars & conditions. Does it mean an employee need to sign new contract? Or is it automatically extended for period of time after Iqama renewal? Is there Saudi Labor Law instigated on this? Please advise
It's internal contract between employer and employee, it will automatically renewed by sponsor (Company) without sign of employee, regarding Iqama, they will informed you before going to expire. You can submit for renew.
Hi! Regarding contract anyone know of the penalty fees for terminating contract before end of term with ICEAT? Are we talking over 13000 sar???
Thank you
Madbrad7979 wrote:Hi! Regarding contract anyone know of the penalty fees for terminating contract before end of term with ICEAT? Are we talking over 13000 sar???
Thank you
There is nothing called a termination penalty.
In case of an contractual early termination, the employee has to pay back the costs incurred by the employer to bring him/her on-board, if an early termination without legitimate reasons. That will roughly be the visa fees + air tickets and some other expenses. Pls ask for the breakdown of 13,000 SAR and view it against the Article 40 - clause 2 in the labor law.
what if the case is retrenchment, what's instigated in saudi labor law?
Japz88 wrote:what if the case is retrenchment, what's instigated in saudi labor law?
What exactly in retrenchment? If you are afraid of a layoff, you don't have to terminate your contract. I suggest to sit back and watch.
In case you have a finite term contract, they have to pay you for the validity remainder of the contract. For infinite contract, you'll get the end of service (EoS) in full.
Thank you!
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