Sunday, November 23, 2008

End of Service Benefits



The best thing for expatriates working in Saudi Arabia, apart from a tax-free salary, is the provision of End of Service Benefits (ESB) in the Saudi Labor Law :) I have been getting frequent requests for clarifications on this, and hence decided to write an exclusive post on the same.


Nothing more can cause a bigger worry for an expatriate who has decided to leave for good, than the thought of financial insecurity, atleast in the short run. Unless people have a job ready for them as soon as they leave the kingdom, the prospect of being unemployed is truly frightening, particularly in this age of global recession. For those expatriates who have worked in Saudi Arabia for quite a long time, the biggest question before them is: What Next? End of Service Benefits offers some kind of comfort to expatriates, once they have completed their term in the kingdom.


Article 84 of the Labor Law has explicitly stated the benefits to be paid for the expatriates. It is proportional to the number of years he or she has stayed with a particular sponsor. So, for the first five years of service, an expatriate is entitled to receive half a month's pay for each year of service, and one month's pay for each subsequent year of service. Note that this is in case of completion of the contract by the expatriate. Calculation of ESB is based on the last wage a person has earned and includes all allowances. However, these allowances do not include wage components such as sales commissions, sales percentages, etc., because they cannot be accurately determined :-B


There are certain exceptions, though. If an expatriate has resigned within the first two years of service, he is not entitled to any ESB. If he has resigned between two to five years of continuous service, he is entitled to one third of the salary. If he has resigned between five years upto ten years of continuous service, he is entitled to two thirds of the salary and to a full salary, beyond 10 years of continuous service. Again, the definition of "salary" here includes basic pay plus all the allowances, excluding of course, certain exceptions such as sales commissions, etc., as mentioned earlier. In all cases, the last salary drawn is the basis for calculations.


In case the expatriate has to leave due to Force Majeure conditions, he is entitled to a full salary. Force Majeure has been well-defined and in short, it relates to uncontrollable situations such as War, Earthquake, etc.


In case of female workers, Article 87 of the labor law has given some additional benefits. If a female worker leaves the job within six months after her marriage or within three months after she gives birth to a child, she is entitled for full salary benefits.
Hope you found the above information useful. Ignorance isn't bliss, sometimes it could be dangerous not to know your entitlements :)




84 comments:

Basheer said...

Very use full article.

Basheer
Riyadh

Expatguru said...

Thanks, Basheer.

Anonymous said...

Hi Expatguru,

I've been following yr blog since a year ago, very informative indeed. Thanks for your effort to all newcomers like us.

Just like to share with you that I've secured an offer from a good reputed company in KSA as a site manager with SR35,000/mth (all in), plus 21 days wages as ESB, I'm not sure if its the top end of the market, but it certainly paid higher than my home country :)

Grateful if you'd kind enough to clear my uncertainity:
1. I've been writtenly promised in the contract a fixed regular monthly bonus, would that be counted into the ESB?
2. as I'll be traveling here on a single status, whether SR2,000/mth sufficient for a furnished one bed room apartment in Jeddah?
3. the contract I've signed is in English only, and I understand KSA only recongized Arabia text as legally binding document, should I ask for a Arabia contract (I'll use a translation service locally) to be signed in my home country before heading to KSA?

Many thanks for your time.

Cheers

Expatguru said...

Anonymous,

Glad to know that my blog has been of use to you.

1. Bonus is not counted for ESB calculations.

2.I do not know the current rent existing in Jeddah (as I do not live there), I would not be able to answer your question about the prevailing rent there.

3. Yes, only the Arabic contract is considered a legal document by the courts here. Usually after you land in the kingdom, you will be made to sign an Arabic contract. However, please note that even if you take the extra precaution of getting your contract translated in Arabic in your home country and making your sponsor sign the same, there is nothing much you can do if your sponsor refuses to honor the same. Remember, your passport will be in his possession and unless he signs in the exit form, you cannot get out of the kingdom. The best way to get out of this mess is to enquire well about the reputation of your employer before coming here rather than straightaway accepting an offer, however attractive it may seem. Hope this helps.

Anonymous said...

Many thanks for your advise. I shall exercise triple care in exploring the reputation of the company I'm going to join.

Have a nice day

Cheers.

Siraj said...

Glad to see the blog and above comments.
Here in Jeddah, the house rent is around 15,000 p.a. for 2 bedrooms.
Besh wishes for your new job.
Welcome to Jeddah..!

Micper said...

Dear ExpatGURU,
I completed almost 4 years in the present company. In my monthly salary, apart from basic, they are giving other allowance as well as some "Additional Amount" and orally told us that there will be no ESB.
Am I eligible for ESB or not?

Expatguru said...

Siraj,

Thanks for the valuable input.

Expatguru said...

Micper,

You are definitely entitled for an ESB. This includes your basic plus your allowances. However, if those "additional allowances" are unpredictable ones, eg., sales commissions, bonus, etc., these are not included.

Anonymous said...

Hello,
I work in international payroll and we would need some information asked by a saudi client. Could you please help us? I am writing from Hungary-Budapest.
Thanks in advance,
Kata

Expatguru said...

Kata,

I would be glad to help you.

Anonymous said...

Thanks, therefore here it is the question:
I have a query regarding paying employees on the Saudi Arabia payroll who have not yet been issued with their Iqama.

I have been informed that the company faces a tax charge on all salaries paid during the time that an Iqama has not been in place - can you confirm if this is correct? If this is correct, can the employee be paid outside the payroll and then all payments processed through the Saudi payroll once the Iqama has been issued. Will there be an issue with processing backdated payments all through one month?

Also, when an Iqama is issued, is the effective date backdated to the date the request for an Iqama is completed or is it issued with effect from date is is given to the employee?

Thank you in advance,
Kata :)

Expatguru said...

Kata,

For companies registered in Saudi Arabia, there is no tax of any kind on salaries paid. However, there is something called 'Zakat', which is 2.5% of the total profits a company makes in a particular year. This, however, is not applicable to companies not registered in the kingdom.

The iqama date is with effect from the date of stamping the iqama by the passport office.

Hope the above information was of some use.

Anonymous said...

Dear Expat Guru,
I am a newcomer to your blog,i must say that it is quite helpful in resolvong some of the questions everyone coming to ksa has in his mind.

I have a question for which i need your advice.I will be coming to KSA in January and i plan to invite my parents to stay with me.I wanted to know what needs to be done to secure a famiy visa for them ,i was told that the normal visit visa only allows one to stay for a maximum of fourteen days.

I will be grateful for your advice.

Thanks

Best Regards

Expatguru said...

Anonymous,

Glad to know that my blog has been of use to you. First of all, you need a residence permit (iqama) before you can sponsor your parents. This would normally take about 3 months from the date of your arrival. Secondly, do check up the profession mentioned in your visa. It would be in Arabic, so you will have to get it translated. If it is a non-supervisory category, eg., labor, plumber, carpenter, etc., you will not be eligible to bring your parents or your family. Read this link
http://workinginsaudiarabia.blogspot.com/2007/12/family-visit-visa.html

I would also advise you to go through each one of my posts before coming to the kingdom. Choose a particular month from the dropdown calendar on the right hand side and select a topic which I have written in that month. Good luck!

Anonymous said...

hi expat guru please coould u help me and tell me that can a busiiness visa be changed into a permant employment visa while in the country and is it possible to travle from jeddah to riyadh on abussinees visa please can u help me and the info u are providing is excellent thanksssssssssss

Expatguru said...

Anonymous,

No, you have to go out of the kingdom and come back on a fresh employment visa. There is no travel restriction within the kingdom unlike earlier days when a travel permit was required.

Anonymous said...

thasnks so much expat guru ure site is very very helpful God bless u and keep u happy /,...

Dr.Karnam said...

Great work!
I am Doctor in Dammam and have resigned my job from the National Guards nest year Jan 2009. I own a Honda Accord 2006 bought in November 2006 and have the car in my name as well all the documents. I would like to take my car to India.
1. Is it a good idea?
2. Any agents that would help me ?
3. How much in total would it cost me? I bought it at a cost price of SR 78,000

Please help and advice
Thank you

Expatguru said...

Doctor,

Note that unless you sell the car to someone else and get the name transferred to his name, exit visa will not be stamped in your passport. This is a legal requirement.

Anonymous said...

I have been workin in a company since 2000 Jan. I received My ESB till 2005 Jan. i going to finish my service in the company end of this year. how can i calculate my ESB(from 2005 Jan to end of 2009 or calculate my ESB from January 2000 and subtract from that what my employer paid you in 2005)because every year i got salary increment
By Shams

Expatguru said...

Shams,

It is easier if you calculate the total ESB from 2000 and then deduct what was already paid to you.

Anonymous said...

First off, I'de like to thank you for your posts. I found them quite helpful as did everyone else I'm sure. I'de like to ask you a question about ESB in 3 different scenarios..

A) If an employee has been working for a company for 3 years and within the past few months was absent a total of say 4 days without informing his employer (not consecutively, average of 1 absent/month, 2 in 2008 and 2 in 2009) and is placed on company probation based on that.. Would he be entitled to ESB if he decided to resign?

B) If an employee decides to resign and gives a one month notice but a few weeks after the 1 month date before his yearly contract renewal date.. Would that employee be entitled to ESB?

C) If the employee's contract is terminated due to a total of 5 unexcused absences (however still falling beneath the limit of absences that would cause legal reason for termination based on Saudi Labor law).. Would that employee be entitled to ESB?

Thanks..

Expatguru said...

Anonymous,

Your questions are quite interesting. Unfortunately, I am not in a position to answer them and I would suggest that a legal professional handle these.

Expatguru said...

Anonymous,

Your questions are quite interesting. Unfortunately, I am not in a position to answer them and I would suggest that a legal professional handle these.

kuted said...

hi expatguru, i'd been here for 2 months n working for reputed company in KSA n signed contract term for 2years,before leaving to KSA i did medical check-up in my home country n found nothing wrong with me,i follow all required test and vaccine injection, but when arrived here in KSA i'd to do medical check-up again but failed,company wanna to terminate my contract n send me home,i lost my income,job n my career now.i'm not false my medical report to be here, so my question -what should i get from the company as compensation for terminated my contract.

thanks

Expatguru said...

Kuted,

Unfortunately, there is no way you can claim compensation for this. I feel sorry for you, but in a way it is a blessing in disguise. Do have one more medical test in your home country for your own health's sake and try some other country. Good luck!

Anonymous said...

Hi expatguru,

I find your posts very helpful.
I would like to ask you some question regarding changing of sponsorship here in KSA.

I am working in a reputed company for 2years now, my company granted me a release w/ NOC, question : will I be entitled to an ESB? if my salary is 2300SAR how much you think i can get? Can i also claim my plane ticker for i have not made any vacation trip since i came to KSA?

Thanks,
Kenneth

kenneth said...

Hi Expatguru,

I have been working with a reputed company for 2 years now, then the compay granted me a release with NOC, am I still entitled to my ESB and vacation benefits from my previous company? can I convert my supposedly plane ticket to cash because they gave me the release before my scheduled vacation?

Thanks and regards,

Kenneth

Anonymous said...

hello sir,
thanks for all info. given above and guidence. I have a question about ESB. if one is working in a firm for more than 10 years and still both parties the employer and the employee wishes to continue thier work relation, is it possibke for the employee/worker to ask his employer for setteling his previous end of service benifits? or one should leave the job to get this?
thanks.

Expatguru said...

Anonymous,

ESB is applicable only when a person's employment comes to an end, not prior to it.

Anonymous said...

Thanks for answering. regards,,,

Anonymous said...

Hi Guru,

Please kindly help me to calculate my ESB, I am working in a reputed organization for 6yrs and 2months, my salary package is 8500sr/mth. as my transfer procedure is completed, my last company wants me to sign on the final acknowledgment before they issue the calculation sheet to me. according to them, i have earned 111 (ESB) days from my 6yrs and 2 months of service, and they will be paying 2/3rd of this, which is 74days. i dont not understand thier method at all. please help.

Thank you.

Expatguru said...

Anonymous,

It's simple. First calculate your total last-drawn salary, i.e., basic salary plus all allowances (excluding bonus). Call this amount X. For the first five years, your ESB will be 2.5 times X. For every subsequent year, it would be X. For less than a year, it would be on prorata basis. Hope this is clear.

Anonymous said...

Hi friend,
Thanks for your soon reply, as you said i calculated, so got an amount of 29750SAR, but at present they are giving me 20000sar.is there any reason for my company to deduct certain amount as they have given me a local release,or by any other reason? Thanks.

Expatguru said...

The best way is to ask them why they are not giving you the full amount. The calculation I have given is your dueful right.

Anonymous said...

Hi friend,

Thanks for the info, If it is my right, then I have to check with them.

Thanks again,

Anonymous said...

Hi friend,

Please confirm me the following calculation for ESB given by my company is correct.
(I have resigned from a position of site manager after 6yrs and 2 months service).
Their calculation as follows:
For 5yrs - 15days x 5 = 75Days
for last 1 yr - 30 x 1 = 30Days
For last 2mnths - 6Days
Total Earned ESB - 111Days slary
Now due to my resignation they said they will pay only 2/3 of 111 = 74days salary.

I hope my question is clear for you, please tell me whether their calculation is correct.

Regards,
Shiraz

Expatguru said...

Shiraz,

It depends on the duration of your contract. Any unfinished portion of your contract will not be paid any ESB. For example, let's say your contract was of 2 years which got extended twice, each extension of 2 years each. This makes it 6 years. If you are now in a fresh contract upto 8 years, and you resign in the 7th year, you will not be paid for the 7th year because you are breaking the contract. But you will be paid for the first 6 years - 15 days salary for each of the first five years and 30 days salary for the sixth year.

Anonymous said...

Hi,

Thank you very much for your prompt reply.
as per your advice, for 6yrs it comes 105 days, but company is paying me only 2/3rd of 105 which is around 70days. can i go for any legal action? what is you advice?

Regards,
Shiraz

Expatguru said...

Shiraz,

First tell them that their calculation is wrong. If they still insist on giving you a lower amount, straightaway go to the labour court. In any case, DO NOT sign any paper under duress. Good luck!

Anonymous said...

Thanks for your advice,

Shiraz

Anonymous said...

hi ,i have only one question..is it not wired that Saudi Embassy wants NOC for visa ...but there is no rule for sponsors to give NOC .....if any sponsor wants to create problem they will just not give NOC...its upto them only !!!!!!!!!!!!!!!!!!!!!
dont u think NOC should b a ESB
(end service benefits) or RIGHTS of employee

Borkan said...

Hi Sir,
It is impossible to send a query through your payment system, i always get invalid querry error.

I will be very happy if you send your email so i can pay through paypal. Or if you can rpely from here it will be great.

My question is, i am working as an expatriate on a contract basis, renewed every 6 months. After 3 years of work, my employee wants me to sing a T&C paper including that the employee will not be liable to pay any End of Service Indemnity.

I heard that even i sign this, it means nothing depending on Saudi Laws, and i can still get my End of Service payment. Is it true? Do the companies have right to make us sign that we will not be paid.?

Expatguru said...

Hello Borkan,

I have tested the form just now and it works fine. You must take care to fill in all the required fields, particularly the verification code after the terms and conditions. This is to avoid spammers from flooding my Inbox. Alternatively, please logon to Paypal, register yourself (it is free and is a secure site) and make a payment to expatguru@gmail.com. Once I get an intimation from Paypal, you will get a reply in your Inbox within 1 working day.

Anonymous said...

Your postings on ESB is very informative. I am in KSA for 11 years, we were offered a package including 10% ESB which will be deducted from monthly pay and paid end of every year. At the end of every year company promptly paid retained 10%.

So in my case also, am I eligible for the ESB? Please let me know.

Expatguru said...

Anonymous,

I didn't quite understand your query. What I understand is that your company is deducting a certain sum from your salary every month and then returning it to you at the end of the year. If this is right, what your company is doing is nothing but cheating. An employee is not supposed to contribute anything towards ESB. It is a legal requirement of the company to pay without deducting anything from the employee.

Anonymous said...

Sorry, I was not clear. In my contract it is written as "Your compensation package is SAR 120,000per year, which includes 10% End of Service Bonus, it will deducted from your monthly pay @ 10% and will be paid at the end of one year contract". I was paid SAR 9000 every month and in pay slip it is shown as 1000 deduction as ESB. After completion of 1 year I was paid SAR 12,000 and asked us to sign on a statement showing your ESB is paid. I signed for the last 4 years, before they did not take any signature.
When I asked my company, they say there is a clause in Saudi Labor law, if 10% is paid every year, then I am not eligible for ESB.
Would you please guide me what to do in this situation.

Your help is appreciated..I am ready to pay your fee if your guidance help me to get my ESB. Pl drop your email ID, I can contact you.

Expatguru said...

Anonymous,

Please fill in the form through the link given in the top right corner of this blog. You need to have a Paypal account. If you do not have one, registering with Paypal is free and easy. Paypal is a secure site.

Renz... said...

Dear Expatguru,

First and foremost I would like to greet you pleasant good day, hope you are in good condition upon reading my comment and I would like to thanks for all information that you have been written into your blog.

I have a question to you regarding to my mother visit visa if it's possible to permanent her visa. I have my baby which is already attached in my iqama and my wife she's working in a private hospital here in Eastern Province.

I already prepared all the requirements that you have been mentioned to your previous post excluding my Diploma & School's Credentials. does Passport Office can able to permanent my mother visit visa eventhough I could not provide the Diploma or School's Credentials?

Here are the following requirements I had:

Oginial Married Certificate with Arabic Translation and Stamp from Saudi Embassy in Philippines, Married Certificate of My Mother (to be translated in Arabic), Comapany Letter stated my salary/allowance and with Chamber of Commerce Stamp, Medical Certificate to prove that my wife is pregnant...

anything else to be provide in Passport Office? please advise...

I need to permanent my mother visit visa because my wife she will deliver our second baby in mid of January 2010.

Thank you very much to your favorable response...


Regards,

Renz.

Expatguru said...

Renz,


Please fill in the form through the link given in the top right corner of this blog. You need to have a Paypal account. If you do not have one, registering with Paypal is free and easy. Paypal is a secure site. I charge a nominal fee for this. This helps me segregate spam from genuine requests and also ensures that you get a personalized reply.

Anonymous said...

Does it applies to locals as well?

Expatguru said...

Yes, it applies to locals as well.

Anonymous said...

thanks for your blog expat guru,Hope you can give me advice & answer my queries as follows;(1)I've been 4years working in my company & they give me 20days on my ESB is this reasonable computation? (2)I'm planning to come back w/other sponsor after 1 month,is this possible? (3) if they give me a visit-visa is it sure i can go back again in the KINGDOM? hope you can give me an advice.thanks a lot for your time & help..God speed & may god bless us all.

Expatguru said...

Anonymous,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed, personalized and confidential reply by email.

Hameed said...

Dear Yasir, Assalamu aliakkum,I am working in a transport co., and I have completed 15 years here. Now I required some money and ask my company for a personal loan. But they refuce to give a loan and advice me to calculate my ESB and will give that. But according thier calculation they said upon my requiest they are calculating the ESB, so its considerd as I resign. so the ESB can calculate accordingly which is as follows;
for the first 5 years – 1/3 of full salary,
Next 5 years – 2/3 of full salary
then full salary per year.
Is that correct ? I’m not signed any written contract with my company. I’m getting basic salary and SR.6000 per year for housing., my GM said my basic salary only can calculate for ESB and the housing which is paying is only a help from his side.
So please help me about this matter is thier calcutation is correct or mine ? ( I insist I wanna get half of salary for first five years and full salary for the each subsequent year of service.)
Thanking you,
Abdul Hameed (freshenter@gmail.com)

Expatguru said...

Hameed,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed and personalized reply by email.

sami sami said...

dear Expat guru

nice to see u here. i am new on this blog and i want some information hope you will help me.
I have sucessfully completed my 2 yr and 4 months in saudi arabia. now i am planning to go after 2 months. am i entitled for 1/3 of my salary or full.
and other question is that my company dosent gives exit, instead exit re entry.. and my iqama is valid up to ramazan next yr.. if i want to come saudi arabia again i have to wait till or i am permitted to came after 3 months.

Expatguru said...

Sami Sami,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed and personalized reply by email.

A.U.ahmad said...

I worked with company for 4 years , 10 months and 15 days. My Basic Salary was SR 14310.00/month. My Housing Allowance was SR 4770.00. Please note that i resigned. My Company has calculated in a very strange way. They first took my basic+housing/month then divide it by 2 and count the payment as 4Y+10Months+15Days which came around SR 46,502. then they applied 1/3 and my ESB is SR 15,500.68. Can you advise if its correct or wrong

Expatguru said...

Ahmad,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed, personalized reply by email.

Afraz said...

i am working in saudi arabia since 4th august 2008 with al khodari company and my contract was 1 year renewable. and i was told that renewable means it will renew automatically on 04th august every year. and now on 04 august 2012 i want to leave the company and going for exit. and before that i have given one official letter to my company with subject end of contract in that letter stating that i am not going to renew my contract from 04th august 2012. so my last working day or contract expiration date will be 03rd of august 2012. so i want to confirm from you that how they are going to calculate my end service benefit because as i discussed in my company personal dept. they said that i am entitled for 1/3 of total days it means for 4 years total days is equal to 60 but as per 1/3 it will be become 20 days so please clarify me for the same. because in saudi labor article no 84 it is clearly mentioned that upon expiration of contract the employer have to pay half month rate up to 5 year and full month rate after 5th year and onward. so why they are cheating me by this way. even i am not violating the contract also. same date 04th august 2008 i came to ksa and i want leave same date 04th august 2012 i am leaving. so why they applying 1/3 or 2/3 rule with me, when it is clearly mentioned in Saudi labor law article 85 that if the relationship is terminated because of resignation then 1/3 or 2/3 rule will be applicable. please justify regading my above mentioned querry

Expatguru said...

Afraz,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed, personalized reply by email.

Anonymous said...

lady with the green scarf..

I found your article so helpful. thank you for the informationn about article 84. Now, story is, I fully served 4 years serving my sponsor straight no vacation at all. I will go for exit now but they are not giving my ESB. They will just give me the paid vacation that i am entitled but for my end service benefit is out of the scene. Is there any possibility I can get it legally? I will be waiting for your response. Thank you

Expatguru said...

Anonymous,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed, pesonalized reply by email.

Waheeda Fatma said...

dear guru,iam working in saudi private clinic since 7yrs but 2yrs contract basis.due to some personal reason this yr want to resign.but iam affraid maybe company will ask me pay something due to not completing 4th contract.what is your idea?

Expatguru said...

Waheeda,

You will get your ESB only for 6 years as per law. Nobody can prevent you from resigning and there is no need for you to pay anything. Give 30 days written notice. That's all. All the best.

Waheeda Fatma said...

dear guru,thank u somuch for the prompt reply.so proud to say that iam also tamilian.continue the good work&takecare.

Anonymous said...

Dear guru

I have been working in a company since August 2002. I received My ESB till July 2006. I made a new employment contract from August 2006 and continues unitl now . i planned to resign by end of this month and transfer sponsorship to another party. how can i calculate my ESB (As a new contract shud i calculate from Aug 2006 to end of Oct 2012 - 6 years (fist five year will be half wages and the remaing 1 year full salary)

OR
shud I calculate my ESB from Aug 2002 and subtract from that what my employer paid me in 2006)

Is transportation allowance will be included in the calculaton?

by sg

Expatguru said...

SG,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed, personalized reply by email.

Anonymous said...

hi Guru, I was working at a company in Saudi Arabia from February 2010. After completed 2 years I went vacation to India with 5 months period on March 2012. My exit reentry visa expiry date was August 2012. But,due to my family issue I could not return to work on time. Now my exit reentry visa is expired, But still my iqama is valid and expiry date is April 2013. Hence, now i'm in India... my questions are:

1. Is there chance to me go back to same company in saudi?
2. If not possible to go back then Can I get End of service benefits from my company? am I eligible to get it?
3. looking for few advice for this situation.

Please reply to this... thanks in advance.

by vincent

Expatguru said...

Vincent,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed, personalized reply by email.

Elmero Libunao said...

Dear Sir:

I am Pilipino working in my present company in Jubail Saudi Arabia for more than 4 years now (Dec 2008 to present) and already tendered my resignation effective this March 2013. I check with our HR department regarding my ESB and informed me that I am entitled to 5 days only for every year of service which is contradictory to Article 85 of the Saudi labor law.

Is this true or should I get 10 days for every year of service? Is there anywhere or way I can complain about this issue?

Expatguru said...

Elmero,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed, personalized reply by email.

Mohammed WaseeUddin said...

Hi Expatguru,

I work in a very remote place and get vacation in every 12 weeks and 2 weeks off. My company say's that as I am taking vacation 3 or 4 times in a year therefore I am not eligible for end of service benefit. Could you please advice if this is true according to Saudi labor law and if I am entitled for end of service benefit what should be my course of action if my company refuse to give?

Thanks in advance.
Mohammed

Expatguru said...

Mohammed,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed, personalized and confidential reply by email.

elsies said...

Good day Sir, I just want to clarify regarding my ESB, I join the company last 19 April 2008 up to present, actually i tender my final exit 1 month before my contract end, then my boss requested to stay for another 2 years contract, then I agree as long as they're going to give me my EBS for 2008 till 2014, then they computed my ESB as follows: 60 days X 1.25 X 5,700+950 over 30 = 16,625, then 7.4 months X 2.5 X 5,700+950 = 4,100.83,which is total of 67 months only instead of 72 months for 6 years, there explanation is because they increase my salary last December into 7,500/M. they did not include the month from Dec. till April, Is it correct, because as per Article 84 of Labor Law the ESB calculation is base on last wage, So they should calculate mine on 7,500 not on 5,700. Am I correct and what can I do, Please advice thanks a lot...

Expatguru said...

Elsies,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed, personalized and confidential reply by email.

Anonymous said...

Is there a requirement to request the ESB from your employer if they reassign you out of Saudi and you remain employed by them? I spent 4 years in Saudi working for a US company, then was reassigned to the US and worked for the same company an additional 10+ years. I recently resigned and I asked about my ESB for my first 4 years. They told me I should have asked for it within 1 year of leaving Saudi. In reading the Saudi Labor Law I can only find "at the end of the work relations" as when the ESB is paid. To me, the 'work relations' does not end until you leave the company. I think it is important for everyone to know if they are required to ask for the ESB within a year of leaving Saudi - even though someone may continued the 'work relation' with the same company in a different country?

Expatguru said...

Anonymous,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed, personalized and confidential reply by email.

Anonymous said...

Dear,

Thanks in advance; my question i have worked for company since April 20 2005 in yearly contracts, i'm on my 10th contract and plan to resign on January 19, 2015, if my last salary is X would i get 2.5x5X + 4x + (.66x.75x for the 10th year 2/3 as per article 85). my company claiming i would be entitled to 2/3 of total benefit if i resign for the 10th year is completed. please advice. Thanks again

Expatguru said...

Anonymous,

Please fill in your query in the form using the link in the top right corner of this blog. I charge a nominal fee for my consultancy, which would get you a detailed, personalized and confidential reply by email.

Unknown said...

Hello Dears,
My story is that in 2006 I had to claim my ESB whilst I’m on the Job for an urgent financial need. In fact, the company could not support me with my requirement that time but rather I was told to take my ESB by resigning and rejoining with same employment terms which I did and took the ESB for the period from 14/11/1992 to 15/05/2006
Now, it is being total of 22years plus for my career and now I feel that it will be a big loss for me by the time I take my ESB for the remainders.
I am planning to go for good by 2015 and would like to know the right provision which entitles me to have my ESB calculated retroactively from my ‘DoJ’ and the ESB amount which I claimed in 2006 be deducted from my full ESB.
Pls., advice on the above with the correct article # of Saudi Labor Law …
Thanks a lot, Mohamed

Expatguru said...

Mohamed,

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