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Publication date: 14 November 2019 - 17 Rabi' al-awwal 1441

The employment contract expires in any of the following cases:

· If the two parties agree to terminate it, provided that the worker's consent is in writing.

· If the term specified in the contract expires - unless the contract is expressly renewed according to the provisions of the labor law - then it will remain valid for its term.

· Based on the will of one of the parties in contracts of indefinite term, according to what was mentioned in Article (75) of the labor law.

· The worker has reached the retirement age according to the provisions of the social insurance law, unless the two parties agree to continue working after this age.

· Majeure force.

· Shutting down the establishment entirely.

· Ending the activity that the worker is employed in, unless otherwise agreed.

· Any other situation stated by another law.

· If the contract is for the performance of a specific work, it ends with the completion of such work as agreed.

· If the contract is for an indefinite term, any of the two parties may terminate it on the basis of a legitimate reason that shall be indicated by a notice addressed to the other party in writing before the termination of the term specified in the contract, provided that it is not less than sixty days if the worker’s wages are paid monthly, and not less than thirty days for others.

• If the party who terminated the contract of an indefinite term does not observe the time limit set for the notice in accordance with Article (75) of the Labor Law, then he shall pay the other party on the notice period an amount equal to the wage of the worker for the same period unless the parties agree to more than that.

• Unless the contract includes specific compensation in exchange for its termination by one of the parties for an unlawful reason, the party affected by the termination of the contract shall deserve compensation as follows:

1- Wages of fifteen days for each year of the worker’s service if the contract is for an indefinite term.

2- Wage of the remaining term of the contract if the contract is of a limited term.

3- The compensation referred to in paragraphs (1,2) above should not be less than the worker's wages for a period of two months.

• If the notice is on the part of the employer, the worker shall be entitled to be absent during the notice period for one full day of the week or eight hours during the week in order to search for another job with his entitlement to the wage of this day or hours of absence, and the worker may determine the day of the absence and hours provided that the worker notifies the employer of the day prior to the absence, at least, the employer may exempt the worker from work during the notice period, while considering his continuous service period until the expiry of that period, and the employer’s commitment to the consequences that entail, especially the employee's entitlement to his wage for the notice period.

• The contract of employment shall not expire upon the death of the employer unless his person has been taken into account when concluding the contract. However, it expires with the death of the worker or his inability to perform his work, according to a medical certificate approved by the authorized health authorities or the authorized doctor designated by the employer.

• If the contract is for the performance of a specific work, it expires with the completion of the work agreed upon.

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