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Article 74 of the Labour Law: when does an employment contract end?

Prepared from the official page

Article 74 of the Labour Law sets the cases in which an employment contract ends, including: agreement of both parties provided the worker consents in writing, expiry of a fixed-term contract, the will of either party in an indefinite contract, resignation, reaching retirement age, force majeure, permanent closure of the establishment, and ending the activity the worker works in.

Steps

  1. Case 1, agreement: the contract ends if both parties agree to end it, provided the worker's consent is in writing.
  2. Case 2, expiry: a fixed-term contract ends when its term expires, unless it has been expressly renewed under the Law, in which case it runs to its new end.
  3. Case 3, indefinite contract: it ends by the will of either party for a legitimate reason with written notice (Article 75). If the wage is paid monthly, notice is at least 30 days from the worker and at least 60 days from the employer; if not monthly, at least 30 days from either party.
  4. Case 3 bis, resignation: it is deemed accepted if 30 days pass after it is submitted without a reply, and the employer may, if the work requires it, postpone acceptance for up to 60 days with a written, reasoned explanation given before the 30 days end. The worker may withdraw it within 7 days unless it was accepted first, and a worker who resigns gets all his statutory rights (Article 79 bis).
  5. Case 4, retirement age: the worker reaches retirement age under the Social Insurance Law, unless both parties agree to continue working after it.
  6. Cases 5, 6 and 7: force majeure, permanent closure of the establishment, and ending the activity the worker works in, unless agreed otherwise.
  7. Case 7 bis and case 8: a final decision or judgment of the competent court ending the worker's contract in bankruptcy proceedings opened under the Bankruptcy Law, and any other case set by another law.
  8. Resignation and bankruptcy were added by the Labour Law amendments in force from 1446/8/20 AH.
  9. After the contract ends: check what you are owed, including the end-of-service award (Dalni end-of-service page) and pay for annual leave days you did not use (Article 111).
  10. If the contract was ended for an illegitimate reason: compensation is on the Dalni Article 77 page.
  11. For a dispute about the end of the contract or what you are owed: file an amicable settlement request for free on the HRSD portal. A claim is not accepted after 12 months from the end of the work relationship, unless the court accepts an excuse or the employer acknowledges the right (Article 234).

Have ready:

  • The employment contract
  • The written termination notice or resignation request, and its date
  • Proof of the date the work relationship ended
Apply on the official website(opens in a new tab)Ministry of Human Resources and Social Development (HRSD)hrsd.gov.sa

Official sources (2)

laws.boe.gov.saLabour Law (Bureau of Experts at the Council of Ministers)Last checked: 29 October 2026(opens in a new tab)hrsd.gov.saAmicable settlement of labour disputes (Ministry of Human Resources and Social Development)Last checked: 29 October 2026(opens in a new tab)

General information from official pages, not legal advice. Dalni is an independent service by O AI, not a government website.

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