Nov 29 2011

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Saudi Labour Law – Probation Rules

What are the probation rules in regard to a new employee in Saudi Arabia as per the labour law? Under what circumstances I can terminate contract in probation period? In that circumstance I will be entitled for compensation and end service benefit?

Saudi labour law provides a provision for probation of new employees subject to some terms and conditions.

As per Article 53 of Saudi Labour Law,If the employee is subject to a probation period, that should be expressly mentioned and clearly indicated in the work contract. Such probation period shall not exceed 90 days, exclusive of Eid al-Fitr and Eid al-Adha holidays and sick leaves. If the contract embodies a clause giving the right to terminate the contract to only one of the parties, each party shall have the right to terminate the contract during this period.

Article 54 of Saudi Labour Law says, an employee may not be put on probation more than once by the same employer. As an exception to this, the employee may, with the approval of the contract parties, be subjected to another probation period of not more than 90 days on the condition that this period involves another profession or work. If the contract is terminated during the probation period, neither party shall be entitled to compensation nor shall the employee be entitled to an end-of-service award.

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