{"id":7072,"date":"2026-10-04T14:53:05","date_gmt":"2026-10-04T11:53:05","guid":{"rendered":"https:\/\/ususlawfirm.com\/article-74-saudi-labor-law\/"},"modified":"2026-10-05T11:36:50","modified_gmt":"2026-10-05T08:36:50","slug":"article-74-saudi-labor-law","status":"publish","type":"post","link":"https:\/\/ususlawfirm.com\/en\/article-74-saudi-labor-law\/","title":{"rendered":"Article 74 Saudi Labor Law: How an Employment Contract Ends"},"content":{"rendered":"<style>.usus-tbl{border-collapse:collapse;width:100%;max-width:760px;margin:12px 0 20px;font-size:15px}.usus-tbl th{background:#f4eff9;color:#2A124A;font-weight:700;text-align:right;padding:9px 12px;border-bottom:2px solid #C9A227}.usus-tbl td{padding:9px 12px;border-bottom:1px solid #e5ddec;vertical-align:top}<\/style>\n<div dir=\"ltr\" style=\"text-align: left;\">\n<p><strong>Article 74 of the Saudi Labor Law<\/strong> (\u0627\u0644\u0645\u0627\u062f\u0629 74 \u0645\u0646 \u0646\u0638\u0627\u0645 \u0627\u0644\u0639\u0645\u0644) sets out the ways an employment contract ends. Knowing which one ended your contract is not a technicality: it decides whether you are owed the full end-of-service award or only part of it, whether you are owed compensation, and whether the other party had to give you notice first.<\/p>\n<h2>Ways an employment contract ends under Article 74<\/h2>\n<table class=\"usus-tbl\">\n<thead>\n<tr>\n<th>#<\/th>\n<th>Case<\/th>\n<th>What matters<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1<\/td>\n<td>Both parties agree to end the contract<\/td>\n<td>The employee&#8217;s consent must be in writing.<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>The fixed term in the contract expires<\/td>\n<td>Unless the contract was renewed under the law, in which case it continues to its new end date.<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>The will of either party in an open-ended contract<\/td>\n<td>Under the conditions of Article 75, including written notice and a legitimate reason.<\/td>\n<\/tr>\n<tr>\n<td>4<\/td>\n<td>The employee reaches retirement age<\/td>\n<td>As set by the regulations, unless the parties agree to continue.<\/td>\n<\/tr>\n<tr>\n<td>5<\/td>\n<td>Force majeure<\/td>\n<td>An event beyond both parties&#8217; control that makes performing the contract impossible.<\/td>\n<\/tr>\n<tr>\n<td>6<\/td>\n<td>Permanent closure of the establishment<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>7<\/td>\n<td>Ending the activity in which the employee works<\/td>\n<td>Unless otherwise agreed.<\/td>\n<\/tr>\n<tr>\n<td>8<\/td>\n<td>Any other case provided for by another law<\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The table summarizes the text. Check the current official text of the Labor Law before taking any action, as the law has been amended more than once.<\/p>\n<h2>What are you owed in each case?<\/h2>\n<ul>\n<li><strong>A fixed-term contract expires:<\/strong> the employee is usually owed the full end-of-service award under Article 84, because the relationship ended when its term ran out, not by resignation.<\/li>\n<li><strong>The employer ends the contract:<\/strong> the employee is owed the full award, and if the termination was for an illegitimate reason, also compensation under <a href=\"https:\/\/ususlawfirm.com\/en\/article-77-saudi-labor-law\/\">Article 77<\/a>.<\/li>\n<li><strong>The employee resigns:<\/strong> they are owed part of the award depending on length of service under Article 85, except in cases where the full award is due.<\/li>\n<li><strong>Termination by agreement:<\/strong> what the employee is owed depends on how the agreement is worded and who initiated the termination, so read any final settlement (clearance) carefully before signing it.<\/li>\n<li><strong>Closure of the establishment or end of the activity:<\/strong> the employee did not end the contract by choice, so they keep their right to the award and any wages due.<\/li>\n<\/ul>\n<p>Work out the award for your situation with the <a href=\"https:\/\/ususlawfirm.com\/en\/end-of-service-calculator-saudi-arabia\/\">end-of-service calculator<\/a>.<\/p>\n<h2>Written consent when ending by agreement<\/h2>\n<p>The article requires the employee&#8217;s consent to end the contract by agreement to be <strong>in writing<\/strong>. If an employer claims the contract ended by mutual consent but cannot produce the employee&#8217;s written agreement, its position is weak, and the termination may be treated as one made by the employer. On the other side, do not sign a &#8220;termination by mutual consent&#8221; document if you were in fact dismissed, without first understanding its effect on your rights. If the document is in Arabic and you do not read Arabic, have it explained before you sign.<\/p>\n<h2>Fixed-term contracts and renewal<\/h2>\n<p>If the parties keep performing the contract after its term ends, or the contract is renewed, the provisions of the law apply to the renewal and its length. Renewing a fixed-term contract more than once may change its nature in some cases, so keep a copy of every contract and every renewal.<\/p>\n<h2>How Article 74 differs from Articles 80 and 81<\/h2>\n<p>Article 74 lists the ordinary ways a contract ends. <a href=\"https:\/\/ususlawfirm.com\/en\/article-80-saudi-labor-law\/\">Article 80<\/a> covers the employer terminating the contract for the employee&#8217;s misconduct without an award, and <a href=\"https:\/\/ususlawfirm.com\/en\/article-81-saudi-labor-law\/\">Article 81<\/a> covers the employee leaving because of the employer&#8217;s breach while keeping their rights.<\/p>\n<h2>Frequently asked questions<\/h2>\n<h3>Is an employee owed an award if their fixed-term contract ended and was not renewed?<\/h3>\n<p>Yes, as a rule. The end of the term is not a resignation, and the award is due under Article 84.<\/p>\n<h3>Can an open-ended contract be ended without a reason?<\/h3>\n<p>The law requires a legitimate reason and written notice under Article 75. Ending the contract without a legitimate reason entitles the other party to compensation.<\/p>\n<h3>The company I work for has closed. What are my rights?<\/h3>\n<p>You are owed your overdue wages, the end-of-service award and any leave balance due. If these are not paid, the route is a labor complaint and then the Labor Court.<\/p>\n<h2>Has your contract ended and you want to know your rights?<\/h2>\n<p>The <strong>Usus Law Firm<\/strong> team handles <a href=\"https:\/\/ususlawfirm.com\/en\/service\/labor-cases\/\">labor cases<\/a> in <a href=\"https:\/\/ususlawfirm.com\/en\/lawyer-in-riyadh\/\">Riyadh<\/a> and <a href=\"https:\/\/ususlawfirm.com\/en\/lawyer-in-tabuk\/\">Tabuk<\/a>, and can advise you in English. See also our <a href=\"https:\/\/ususlawfirm.com\/en\/saudi-labor-law-guide\/\">guide to the Saudi Labor Law<\/a>.<\/p>\n<p style=\"font-size:12.5px;color:#6a6178;border-top:1px solid #e6ddd0;padding-top:10px;margin-top:16px\"><em>This article is general legal information and is not a substitute for advice on your specific case. Court proceedings in Saudi Arabia are in Arabic; the official Arabic text of each law prevails.<\/em><\/p>\n<div class=\"usus-qbox\">\n<h2>Request a quick consultation<\/h2>\n<p>Leave your name and mobile number, and a lawyer from our Riyadh or Tabuk office will call you during working hours. We advise in English.<\/p>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f6963-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"6963\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/7072#wpcf7-f6963-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"6963\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.2\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f6963-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<span id=\"wpcf7-6aca55ea08cdd-wrapper\" class=\"wpcf7-form-control-wrap cf7apps-honeypot-wrap honeypot-qf-wrap\" style=\"position:absolute;width:1px;height:1px;padding:0;margin:-1px;overflow:hidden;clip:rect(0,0,0,0);white-space:nowrap;border:0;\"><label for=\"wpcf7-6aca55ea08cdd-field\" class=\"hp-message\">Please leave this field empty.<\/label><input id=\"wpcf7-6aca55ea08cdd-field\"  class=\"wpcf7-form-control wpcf7-text\" type=\"text\" name=\"honeypot-qf\" value=\"\" autocomplete=\"new-password\" tabindex=\"1000\" data-cf7apps-tabindex=\"1000\" \/><\/span>\n<div class=\"usus-qf\">\n<div class=\"f\"><label for=\"q-name\">Name<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"q-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" id=\"q-name\" autocomplete=\"name\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Your name\" value=\"\" type=\"text\" name=\"q-name\" \/><\/span><\/div>\n<div class=\"f\"><label for=\"q-phone\">Mobile<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"q-phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-tel\" id=\"q-phone\" autocomplete=\"tel\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"05xxxxxxxx\" value=\"\" type=\"tel\" name=\"q-phone\" \/><\/span><\/div>\n<div class=\"f\"><label for=\"q-city\">City<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"q-city\"><select class=\"wpcf7-form-control wpcf7-select wpcf7-validates-as-required\" id=\"q-city\" aria-required=\"true\" aria-invalid=\"false\" name=\"q-city\"><option value=\"Riyadh\">Riyadh<\/option><option value=\"Tabuk\">Tabuk<\/option><option value=\"Other city\">Other city<\/option><\/select><\/span><\/div>\n<div class=\"f w\"><label for=\"q-msg\">Your case in brief (optional)<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"q-msg\"><textarea cols=\"40\" rows=\"2\" maxlength=\"600\" class=\"wpcf7-form-control wpcf7-textarea\" id=\"q-msg\" aria-invalid=\"false\" placeholder=\"One or two lines are enough\" name=\"q-msg\"><\/textarea><\/span><\/div>\n<div class=\"s\"><input class=\"wpcf7-form-control wpcf7-submit has-spinner\" type=\"submit\" value=\"Request a call from a lawyer\" \/><\/div>\n<\/div><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Article 74 of the Saudi Labor Law (\u0627\u0644\u0645\u0627\u062f\u0629 74 \u0645\u0646 \u0646\u0638\u0627\u0645 \u0627\u0644\u0639\u0645\u0644) sets out the ways an employment contract ends. Knowing which one ended your contract is not a technicality: it decides whether you are owed the full end-of-service award or only part of it, whether you are owed compensation, and whether the other party [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7292,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[85],"tags":[],"class_list":["post-7072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-labor-law"],"acf":[],"featured_image_src":{"landsacpe":["https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/01\/labor-lawyer-riyadh-tabuk-1140x445.jpg?wsr",1140,445,true],"list":["https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/01\/labor-lawyer-riyadh-tabuk-463x348.jpg?wsr",463,348,true],"medium":["https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/01\/labor-lawyer-riyadh-tabuk-300x300.jpg?wsr",300,300,true],"full":["https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/01\/labor-lawyer-riyadh-tabuk.jpg?wsr",1200,1200,false]},"_links":{"self":[{"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/posts\/7072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/comments?post=7072"}],"version-history":[{"count":0,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/posts\/7072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/media\/7292"}],"wp:attachment":[{"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/media?parent=7072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/categories?post=7072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/tags?post=7072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}