Contracts and termination · Saudi Arabia

Final settlement

Also known as: المخالصة النهائية · full and final settlement · F&F settlement

The short answer

A final settlement settles everything owed between worker and employer when employment ends: pay to the last working day, unused annual leave, the end-of-service award and any notice pay or compensation due, less advances and lawful deductions. The worker signs it on receiving payment.

What goes into it

  1. Pay up to the last day actually worked.
  2. Unused leave: Article 111 pays every day due and not taken.
  3. The end-of-service award under Articles 84 and 85.
  4. Notice pay if the notice period was not observed, and Article 77 compensation if the contract was ended without a valid reason.
  5. Deductions: advances and unreturned company property, within what the law allows.

When it is due

Article 88 requires wages and entitlements to be paid within a week of the end of employment when the employer ends it, and within two weeks when the worker does.

Work out the award with the end-of-service calculator and leave with the leave calculator.

Official sources

This is general information to help you understand the topic. It is not legal advice. Rules and rates change: always check the official text on the relevant authority’s platform and consult a qualified adviser before acting.

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