The End of Service Benefits for Household Workers

According to the Saudi labor law, the end of service benefits for household workers must be paid. But what are these benefits? And what if the contract was terminated by the worker or due to some unfortunate events? Let’s figure out.

Different Cases for End of Service Benefits for Household Workers

1. End of Service Benefits for Household Workers Upon Contract Expiration

• A household worker is entitled to a one-month salary as an end-of-service reward after completing four consecutive years with the same employer. And with each additional period of 4 continued working years, there must be another one-month salary as an end of service benefit for the household worker. 
• The household worker also receives payment of leave allowance if did not benefit from his leave.
• The end of service benefits shall be paid to the household worker within one week from the end of the contract date.
  

2. End of Service Benefits for Household Workers Upon Contract Termination 

A contract termination may take place before expiration for many reasons:

1. Both contract parties agreed to terminate the contract upon written consent.
2. The death of one of the contract parties.
3. The inability of the household worker to perform the required upon proven medical condition.
4. Majeure circumstances that forced one or both parties to terminate the contract. 
5. If one of the parties lost legibility under a reliable report.
6. If the household worker reaches 60 years of age unless both parties agree to continue on the contract.

The household worker also has the right to terminate their employment contracts while retaining their regular rights in each of the following cases:

1. If the employer breaches the basic obligations set forth in the contract or stipulated in the Saudi labor law.
2. If it is proven that the employer used any fraud related to the working terms or/and conditions in the contract.
3. If the household employer or any of their family members assault the household worker with violence or engage in some unethical behavior.
4. If the household worker was assigned hazardous work that poses a threat to his health and body.
5. If the service of the household worker was leased by the employer to others.

The end of service benefits for household workers upon contract termination are as follows:

• Paying the worker’s wages and settling their entitlements within a maximum of one week from the date of the contract’s termination.
• Settling the household worker’s entitlements within two weeks in case they have terminated the contract.
• Providing an end-of-service reward equivalent to one month’s salary for every four consecutive working years with the same employer.
• Paying compensation for unused leave days if the worker has not taken all their entitled leaves.
• The employer also covers the back home tickets for the household worker in case the termination is made by the employer for some illegal reason, or by the household worker for some legal reason.

Legal Conditions that Must be Observed in the End of Service Benefits for The Household Workers:

• If the working period performed by a household worker exceeds four years, the remuneration will be calculated on a monthly basis for each 4 working years.
• If the working period is less than 4 years, the agreed amount in the contract will be paid to the household worker.
• If there is an agreement that the employer will assume all health care rights of the household worker, this amount shall not be deducted from the worker’s bonus.
• Vacation days are not to be deducted from the monthly salary of the household worker.

Written Confirmation for the End of Service Benefits for The Household Worker

It’s always better for the employer to have a written receipt that confirms receiving the end of service benefits for the household workers, signed by them. This official document ensures receiving their full rights, financial benefits, and compensation as preserved by Saudi law; in order to exonerate the employer by fulfilling the financial obligations arising therefrom.

Ensuring fair end of service benefits for household workers is key to a transparent and compliant employment relationship, and a clear reputation for the employer. Let Raha handle everything for you—download the app today for a hassle-free experience! Click here.