Contract Termination

Hi Members,
This might have asked many times earlier, but I didn’t find anything when searched. So, asking here:
•    Do an Employer has to terminate an indefinite contract in a haste, because the notice should be before the contract expiry date, in this case Feb 1. Employer thinks so and believe they might have to pay the whole year salary if the termination is after the expiry date, which is not correct in my opinion, please advise if I am right or wrong.
•    An indefinite contract can be terminated by employer giving 60 days’ notice, or employee resign by giving a notice of 60 days, Right?
•    In case notice is given at the end of contract date (Feb 1) with notice pay, will leave will be calculated for the notice period? in this case 2 months? (an extra 5 days based on 30 days annual leave).

Indefinite Contract do not have expiry date. Take note on this.

If 60 days notice is written and stipulated in the employment contract. Both parties must respect it, as employment contract is a BINDING agreement of both parties.

Again, 01-Feb is not the end of contract as this is NOT fixed term contract as mentioned in your post. This is indefinite contract and therefore must refer to your agreed term to terminate the agreement as stipulated in the conditions of your employment contract.

Thanks for the response. Do you know anything on leave pay for notice. Period?

Yep, an indefinite term contract can be terminated at ANY time by giving notice.  There is no impact to the company.

On the leave angle, it really depends on how your company treats it.  Most companies accrue for annual leave on a monthly basis UNTIL the employee is on the payroll.  In this case, it should be part of your EOS when you leave.   Others are not so fair and suspend leave accrual during notice period - and labor court hassle for small amounts is not worth it for the employee in most cases.

Thank you XTang again for your valid input.
You are right labor court hassle is not worth for five days extra pay.
I remember one more thing.
I am entitled return airfare in February for entire family. Now I am leaving only in June 2020. Do I get the return airfare for completed 12 months and one way when I leave in June?
Thanks again man.

You should get one-way fare irrespective if you are leaving on a final exit visa.   That is different from your annual ticket entitlements.  And again, companies deal with annual entitlements as per their fairness meter :).

SalExpat :

I am entitled return airfare in February for entire family. Now I am leaving only in June 2020. Do I get the return airfare for completed 12 months and one way when I leave in June?

It's not set in stone, but it's fairly common that you will be entitled to have one way airfare ticket for your entire family when you leave on June. It is highly unlikely that your company will forfeit your family round trip ticket even you complete 12 months tenure this February.

Thank you XTang and RedTrumpet for your inputs.
Worst case scenario, if I approach labor court, what will be my status in Saudi since labor court hearings take long time (longer nowadays) to come up with a decision. During this time I am entitled for compensation until the judgement is pronounced? Thank you.

Status doesn't change but if judgement is in your favor, it won't matter.

What I meant is if it prolongs I get compensation for the delays as it costs me to live here waiting for the judgement? Basically will I get my salary or any amount from the employer?

You won't get any compensation for delays.  If the judgement is in your favor, you only get back what you claimed for and the overstay on expired Iqama can be rectified.

Don't prolong your agony. Your employer will not give you salary or a percentage of your salary upon filing a case at labor court against your company. You will then bear the cost of living at your own expense during hearing period of your case and this will definitely drain your pocket in addition your resident permit (iqama) might expire along the way of waiting for verdict. If you are lodging a lawsuit just for small amount forget it. Expat always in decrepit position for such scenario.

Thanks. Let me rectify how much is at stake.

Hi, things are not looking good for me. Since my demand for settlement according to labor law is not received well by our new arrogant management.  They are taking it personally. So instead of agreed stay till June due to my daughter's school completion, they might send me immediately.
Is it possible the company to do final exit when my family has exit reentry visa?
Can they cancel my family's reentry visas without me? What about my car payment and bank loans etc. What is the possibility.
Please your valid input is required urgently.
Thanks.

This is horrible. We are all sorry you are going through this. Unfortunately, this can happen anytime with contract companies.

For exit/re-entry visa thing if you are the sponsor of your dependents, you are force to cancel it eventually in the MOI/Absher and send them home ahead of you before you leave KSA.

For car payment and bank loans, this might be paid or settled through your ESB and final settlements.

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