Anyone submitting a resignation asks the same question: how much am I owed? Article 85 answers it, and it applies to resignation alone; other ways of ending a contract leave the gratuity intact.
The scale qualifies Article 84 rather than replacing it. The gratuity is first computed in full under Article 84, then a third, two thirds or the whole of it is paid according to length of service.
The text of the article
Where the employment relationship ends because the worker resigns, the worker is entitled to one third of the award after service of not less than two consecutive years and not more than five years; to two thirds if service exceeds five consecutive years but is less than ten; and to the full award if service reaches ten years or more.
Status of the text: This article has not been amended; the text below is the original operative text.
The Arabic text published by the Bureau of Experts at the Council of Ministers is the reference; the English above is a working translation.
What the article means in practice
The scale in figures
Under two years: nothing. Two to five years: one third. More than five and under ten: two thirds. Ten years or more: the full award.
For example, a final wage of 8,000 riyals and six years of service on resignation: the Article 84 gratuity is 20,400, and because service falls between five and ten years, two thirds are payable, that is 13,600 riyals.
Resignation only
The scale does not apply to expiry of a fixed term, to termination by the employer, to reaching retirement age, or to permanent closure. Those are Article 74 grounds and the gratuity remains payable in full.
Cases paid in full although the worker ended the contract
Article 87 excepts leaving because of force majeure beyond the worker's control, and a female worker ending her contract within six months of her marriage or three months of giving birth; in both, the full award is payable.
Likewise a worker who leaves under Article 81, because of the employer's breach, keeps all statutory entitlements including the full gratuity, so the resignation scale does not apply.
Before computing a resigning worker's gratuity
- 1Confirm the ending really was a resignation, not an employer termination dressed as one.
- 2Compute the full Article 84 gratuity first, then apply the fraction.
- 3Measure service precisely: four years and eleven months versus five years changes a third into two thirds.
- 4Check the Article 87 exceptions before applying the scale.
- 5Add payment for untaken leave, which is a separate entitlement unaffected by resignation.
Mistakes that recur in practice
Applying the scale to every ending
The text confines it to resignation; expiry or employer termination leaves the gratuity whole.
Denying everything before two years
No gratuity is due, but wages, untaken leave and other dues remain payable.
Overlooking Article 87
Force majeure, marriage or childbirth within the stated periods restore the full award.
Rounding service
At the boundaries the fraction flips, so service is counted by the day.
How Barez applies this article
The fraction is applied automatically
Selecting resignation as the ground makes Barez apply the fraction matching the length of service.
Service counted by the day
The period runs from start date to end date in days, so weeks near a boundary are not lost.
Resignation has its own trail
The request and its approval are timestamped, evidencing that the ending was a resignation.
Sources
- Saudi Labour Law, Bureau of Experts at the Council of Ministers
- Ministry of Human Resources and Social Development
This page is explanatory guidance, not legal advice. In a dispute, rely on the official text and consult the Ministry of Human Resources and Social Development or a licensed lawyer.