I have entered in to a contract with my employer three years ago and I did not renew it after the date of its expiry. I would not like to go renew my contract but want to go by exit visa. What is the expiry date of my contract?
After implementation of new Saudi Labor Law, vital change has been made in the expiry date of contract renewal. This provision is most important but unfortunately most of the expatriates not aware about it. As per the new labour law reforms, open ended contracts has been eliminated. Now if any employee renewed his work contract twice, or worked at least three years in Saudi Arabia, the expiry date of his work contract is same as the expiry date of his work permit.
As per Article 55 (1)of the Saudi Labour Law,The fixed-term contract shall terminate upon expiration of its term. If the two parties continue to implement it, it shall be deemed renewed for an indefinite period of time, subject to the provisions of Article (37) of this Law for non-Saudi employees. As per Article 37, the work contract of non-Saudis shall be written and of a specific period. If the contract does not specify the duration, the duration of the work permit shall be deemed as the duration of the contract.
If the contract involves performance of a specific work, it shall terminate with the completion of the work agreed upon.
Article 55 (2)of the Saudi Labour Law says that,If the fixed-term contract incorporates a clause providing for its renewal for a similar term or a specified term, the contract shall be renewed for the period agreed upon. If the contract is renewed for two consecutive terms or if the original contract term and the renewal period amount to three years, whichever is less, and the two parties continue to implement it, the contract shall become an indefinite term contract. Then it will be considered as per the provisions of Article 37. Also as per Article 56,in all cases where the contract term is renewed for a specific period of time, the contract renewal period shall be an extension of the original term in determining the worker’s rights which takes into account the worker’s period of service.
