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KSA: Few questions regarding the employment contract

KSA: Few questions regarding the employment contract

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Old Apr 10th 2010, 3:48 pm
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Default KSA: Few questions regarding the employment contract

Please excuse my ignorance, but I can't understand a couple of points in my employment contract (sent to me by my Saudi employer).

First it says:

"This contract shall be renewable for a one year period after its expiration or similar period unless a written notice to the contrary is given by either party at least two months before the expiration of such period."

Then it says in a different paragraph:

" If the second party [the employee] terminates this contract without two month notice and before its expiry date or during its renewable period for any reason..." It goes on to state that in such case the employee will be liable to pay damages etc.

Let me put my concerns as questions:

1. Would it be fine if I decided to quit at the end of the year/expiry of the contract without any prior notice?

2. How am I supposed to give a notice if the expiry of the contract is let's say 31 July, and I am already in the middle of June?

By the way, I wonder whether I have to give a notice if I want to quit during the first three months of my term (period of probation), or I can simply terminate the contract. The contract isn't clear about it. It only says that if the employee resigns during the first three months, he will have to pay back all the hiring expenses.

Thanks
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Old Apr 10th 2010, 5:32 pm
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Default Re: KSA: Few questions regarding the employment contract

Originally Posted by creative79
Please excuse my ignorance, but I can't understand a couple of points in my employment contract (sent to me by my Saudi employer).

First it says:

"This contract shall be renewable for a one year period after its expiration or similar period unless a written notice to the contrary is given by either party at least two months before the expiration of such period."

Then it says in a different paragraph:

" If the second party [the employee] terminates this contract without two month notice and before its expiry date or during its renewable period for any reason..." It goes on to state that in such case the employee will be liable to pay damages etc.

Let me put my concerns as questions:

1. Would it be fine if I decided to quit at the end of the year/expiry of the contract without any prior notice?

2. How am I supposed to give a notice if the expiry of the contract is let's say 31 July, and I am already in the middle of June?

By the way, I wonder whether I have to give a notice if I want to quit during the first three months of my term (period of probation), or I can simply terminate the contract. The contract isn't clear about it. It only says that if the employee resigns during the first three months, he will have to pay back all the hiring expenses.

Thanks
Sounds to me like they want you to tell them 2 months prior to contract expiry if you don't want to renew, otherwise the contract will renew automatically.

Most contracts in Saudi are completely ridiculous in terms of giving the employee an option of leaving when they want. Basically they believe you are hurting them by leaving and therefore try to charge you damages. This is obviously a ridiculous way to operate, but what can you do..

These kind of terms are the main reason why a lot of people will not give notice, but just wait until they have been paid one month and then leave quietly through the backdoor (ie run away). Yes, you will forfeit the end of service benefit but this is not really a lot of money unless you've done quite a few years and it is also cut in half (I think) if you resign during a contract term...

Your contract is better than mine in terms of recouping recruitment and startup costs though as it only covers the probation period. My contract states that they will charge me for recruitment costs (ie agents fees, phone costs for interviews, visa costs, hotel the first 14 days and god knows what else) if I resign the first 12 months. Unfortunately you don't have much of a choice when it comes to these things...
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