KSA Labour Law amendments series: Part 1 - resignations

On 23 August 2024, Royal Decree M/44 was published in the Official Gazette, introducing significant amendments to the Kingdom of Saudi Arabia (KSA) Labour Law, which took effect on 19 February 2025. To support their implementation, Ministerial Decision No. 115921/1446 was published on the same day, updating the Implementing Regulations to the KSA Labour Law (together the 2025 Amendments) and providing further clarification and practical guidance.

In this article, the first of a three-part series exploring the key amendments shaping employment in the Kingdom, we explore the key changes to resignation procedures, shedding light on the new structured process, employer obligations and the role of the Qiwa portal in handling resignations. 

The new definition of resignation

Recent updates to Article 2 of the KSA Labour Law now provide a definition of resignation as:

 “A written declaration by the employee expressing their desire to terminate, without coercion, a fixed-term employment contract, without any reservations or conditions, and the employer’s acceptance thereof.’’

Previously, resignation under a fixed-term contract was a grey area, with ongoing debate regarding whether an employee could resign at all, given the principle that such contracts could only end upon expiry. This uncertainty has now been resolved, as the recent 2025 Amendments formally recognise resignation as a valid reason to terminate a fixed-term contract under Article 74. Additionally, the 2025 Amendments introduce a structured resignation process and establish a clear timeline for handling resignations under Article 79.

Employee’s obligations

• Employees must submit their resignation without specifying a deferred date, meaning resignations take immediate effect. Future-dated resignations are not valid under the KSA Labour Law.
• Employees must wait thirty days for a response from their employer regarding the resignation request. During this period, they should remain at work.
• Employees have the right to withdraw their resignation within seven days of submission unless the employer has already accepted it.
• Resignations must be submitted through the government’s Qiwa portal.

Employers’ obligations

• The 2025 Amendments provide the employer with three options: (1) accepting the resignation; (2) delaying acceptance; or (3) rejecting the resignation.
• Employers must respond to a resignation request within thirty days. If they fail to do so, the resignation is automatically deemed accepted at the end of the thirty-day period.
• However, employers may delay acceptance for up to sixty days if necessary for work interests. This delay must be accompanied by a written and reasoned explanation provided to the employee before the end of the initial thirty-day period. The delayed acceptance period starts from the date the explanation is given to the employee.

It is particularly important for employers to record their decision on the Qiwa portal.

When is the contract terminated?

A contract will be considered terminated either:

• On the date the employer accepts the resignation;
• After 30 days from the resignation request, if the employer has not responded; or 
• After the period of delayed acceptance, as determined by the employer.

Next steps for employers

These changes will require employers to assess their current resignation policies and consider whether a new, clear policy is required. Employers should also educate senior management on handling resignation requests, and ensure that decisions are applied consistently. If you require any assistance, or clarifications please contact Sara Khoja, Elodie Chalhoub, or Jassar Al Johani. 

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