Direct Answer / Quick Summary:

Under Saudi Labor Law and Ministry of Human Resources and Social Development (MHRSD) regulations, an employee or employer can legally reduce or waive an active notice period in Qiwa through three distinct mechanisms:

1. Mutual Digital Agreement (Article 74): The resigning party submits a requested earlier termination date during the Qiwa resignation flow. If the employer approves the earlier date via the Qiwa Business dashboard, the system automatically adjusts the contract end date without financial penalties.

2. Pay-in-Lieu of Notice (Article 76 Buyout): Either party can terminate the contract immediately by paying the other party financial compensation equal to the employee's wage for the unserved portion of the notice period (calculated on gross wage, including housing and transportation).

3. Statutory Exemption Without Notice (Article 81): If the establishment commits specific legal violations—such as non-payment of wages for 3 consecutive months, failing to authenticate the digital contract, or workplace safety breaches—the employee is legally entitled to exit immediately with zero notice, zero buyout penalty, and full End of Service Benefits.


The Legal Baseline: Notice Period Rules Under Article 75

Before attempting to reduce or waive a notice period, it is essential to understand the statutory defaults enforced by the Saudi Labor Law (Royal Decree No. M/51 as amended) and hard-coded into the Qiwa Contract Management System:

1Indefinite Contracts (Unspecified Term):

- For employees paid on a monthly basis, the statutory notice period is at least 60 days (Article 75, Paragraph 1).

- For non-monthly employees (daily, weekly, or piece-rate), the statutory notice is at least 30 days.

- Employment contracts can stipulate a longer notice period (e.g., 90 days), but they cannot legally reduce it below the 60-day statutory threshold unless mutually agreed upon at the time of termination.

2Fixed-Term Contracts (Specified Term):

- Fixed-term contracts expire naturally on their stated end date without requiring an Article 75 notice period, provided non-renewal notices are served according to the contractual terms (typically 30 to 60 days prior to expiry).

- Unilateral early termination of a fixed-term contract outside statutory exceptions exposes the terminating party to damages under Article 77 (wages for the remaining contract duration or minimum 2 months' wage).

When a worker submits a resignation via Qiwa Individuals, the platform automatically calculates the remaining notice period based on the authenticated contract terms and displays a live countdown timer.


Method 1: Mutual Agreement on Qiwa (Electronic Handshake)

The cleanest and most common way to shorten a notice period without monetary claims is mutual written consent executed through the Qiwa portal.

Step-by-Step Portal Workflow

Step 1Day 1

Employee Proposes Earlier Date

Select "Request Reduced Notice" in Qiwa Individuals

Step 210-Day Window

Employer Qiwa Business Review

GRO/HR receives electronic alert to accept or reject

Step 3Rejected: 60-day notice continues

Automated MHRSD Execution

Approved: End date shortened

Step 1: Employee Initiates Resignation with Modified Date

1Log in to Qiwa Individuals using your National ID / Iqama and Nafath authentication.
2Navigate to Services → Contract Management (إدارة العقود).
3Select your active authenticated contract and click Terminate Contract / Resign.
4Choose the statutory reason (e.g., Resignation under Article 75).
5In the Notice Period Options, select Request Reduced Notice Period.
6Input the proposed Last Working Day (e.g., 15 days from today instead of 60 days) and specify the operational handover handover plan in the comments box.
7Submit the request.

Step 2: Employer Review in Qiwa Business

1The company's Government Relations Officer (GRO) or HR Manager receives an instant alert in the Qiwa Business dashboard.
2Under Contract Termination Requests, the establishment reviews the requested last working day.
3The employer has two options:

- Accept Reduced Date: Qiwa immediately re-calculates the contract expiry date to the agreed date. The employee's sponsorship transfer or Final Exit eligibility unlocks on that exact date.

- Reject / Maintain Default: The request defaults back to the original statutory 60-day notice period. The employee remains contractually required to serve the balance.

Statutory Compliance Note

Important Compliance Note: A verbal agreement, text message, or signed internal company paper is not sufficient on its own. If the HR department does not approve the date adjustment directly on Qiwa, the MHRSD system will continue running the 60-day countdown. Leaving before the Qiwa countdown expires without electronic approval exposes the worker to an "Absence from Work" (Inqita' an al-Amal) report.


Method 2: Pay-in-Lieu of Notice (Article 76 Buyout)

If either party refuses to wait out the 60-day notice period and no mutual agreement is reached, Saudi Labor Law provides a financial settlement mechanism under Article 76:

Statutory Compliance Note

"If the party terminating the contract fails to observe the notice period, it shall pay the other party compensation equal to the worker's wage for the duration of the notice period or the remaining part thereof, unless both parties agree otherwise."

How Buyout Compensation Is Calculated

A frequent point of dispute between HR departments and exiting employees is whether the notice buyout is calculated on the Basic Salary or the Gross (Total) Salary.

Under Article 2 of the Saudi Labor Law, the legal definition of "Wage" (Al-Ajr) includes the basic salary plus all allowances, increments, and recurring benefits (housing, transportation, food, and guaranteed production bonuses). Therefore:

Daily Wage = (Gross Monthly Salary ÷ 30)
Buyout Compensation = Daily Wage × Unserved Notice Days

Worked Calculation Scenarios

Compensation ElementScenario A: Expat EngineerScenario B: Finance ManagerScenario C: Admin Specialist
Basic SalarySAR 7,000SAR 14,000SAR 4,000
Housing AllowanceSAR 1,750SAR 3,500SAR 1,000
Transport AllowanceSAR 750SAR 1,500SAR 500
Gross Monthly WageSAR 9,500SAR 19,000SAR 5,500
Daily Wage (Gross / 30)SAR 316.67SAR 633.33SAR 183.33
Statutory Notice60 Days60 Days60 Days
Days Served20 Days0 Days (Immediate Exit)45 Days
Unserved Notice Days40 Days60 Days15 Days
Pay-in-Lieu Owed (Article 76)SAR 12,666.80SAR 38,000.00SAR 2,749.95

Who Pays Whom?

1If the Employee Requests Immediate Release:

The employee must pay the company the calculated Article 76 compensation, or authorize the company in writing to deduct this amount from their accrued annual leave balance or End of Service Benefits (Article 84).

2If the Employer Demands Immediate Departure:

If an employee resigns with 60 days' notice, but the company tells the employee to stop working immediately for confidentiality or handover reasons, the company must pay the employee their full salary for the entire 60 days as notice compensation, in addition to their complete End of Service settlement.


Method 3: Immediate Exit Without Notice Under Article 81

If your employer has breached their fundamental statutory obligations, you are not legally required to serve a notice period or pay buyout compensation. You can resign immediately under Article 81 of the Saudi Labor Law and retain 100% of your End of Service gratuity.

The 7 Statutory Exceptions Under Article 81

1Failure to Pay Wages: The establishment fails to pay your monthly salary for three consecutive months or violates Mudad Wage Protection System (WPS) compliance rules.
2Unauthenticated Digital Contract: The employer has failed to authenticate your employment contract on Qiwa within 90 days of employment or work permit issuance.
3Fraudulent Contractual Inducement: The employer committed fraud regarding work conditions or terms at the time of recruitment.
4Substantial Unilateral Change of Work: The employer assigns tasks substantially different from those agreed upon without written consent (violating Article 60).
5Assault or Morally Objectionable Acts: The employer, direct manager, or establishment representative commits physical assault, defamation, or immoral acts against the worker or their family.
6Severe Health and Safety Hazards: The workplace poses grave danger to the worker's life or safety, and the employer failed to take required remedial action despite being officially notified.
7Constructive Dismissal (Coercion): The employer behaves unfairly or imposes hostile conditions specifically designed to coerce the employee into resigning.

For full step-by-step procedures on executing an Article 81 exit without employer consent, refer to our comprehensive guide on How to Resign in Qiwa Without Kafeel Consent.


Comparison Matrix: Notice Period Reduction Routes

ParameterMutual Qiwa HandshakeEmployee Notice BuyoutEmployer Notice WaiverArticle 81 Breach Exit
Governing LawArticle 74 (Agreement)Article 76 (Compensation)Article 76 (Pay-in-Lieu)Article 81 (Statutory Fault)
Notice Days ServedAgreed amount (e.g. 15–30)0 to Partial0 (Immediate release)0 (Immediate release)
Financial SettlementZero penalty; wages for days workedEmployee pays unserved daysEmployer pays full notice wageEmployer pays all dues + ESB
End of Service ImpactStandard Article 85 scaleStandard Article 85 scaleStandard Article 85 scaleFull Article 84 (No reduction)
Employer Consent Required?Yes (Via Qiwa Business)No (If paid in full)N/A (Employer initiated)No (MHRSD / Labor Court)
Sponsorship Transfer TimeImmediate upon agreed end dateUpon financial clearanceImmediateImmediate upon MHRSD approval

Critical Traps to Avoid When Shortening Notice

1. The Verbal Agreement Trap

Never stop reporting to work based solely on a verbal commitment from your HR manager or division head. If the company fails to record the reduced date in the Qiwa Business portal, the MHRSD system treats your absence as an unexcused absence. If unexcused absence exceeds 15 consecutive days or 30 intermittent days in a year, the employer can legally terminate you under Article 80 without End of Service Benefits and without notice.

2. Offsetting Annual Leave Against Notice

Under Saudi labor jurisprudence, an employer cannot force an employee to substitute their remaining statutory notice period with accrued annual leave without mutual written agreement. Similarly, an employee cannot unilaterally decide to take 30 days of leave during a 60-day notice period unless approved by the employer. Any untaken leave balance must be liquidated as cash in the final settlement under Article 111.

3. The Basic vs. Gross Salary Deduction Error

When HR drafts a separation agreement with a notice buyout, ensure the deduction formula matches Article 76. Some employers attempt to deduct more than the gross daily wage or assess arbitrary "recruitment replacement fees." Such deductions are unlawful and invalid before the MHRSD Amicable Settlement (Waddi) committees.


Statutory Timelines for Final Settlement (Article 88)

Once the agreed reduced notice period concludes on Qiwa, strict financial settlement deadlines apply under Article 88:

If Employer Initiates Termination or Buyout: The establishment must disburse all remaining wages, leave encashment, and End of Service Benefits within one week (7 days).
If Employee Initiates Resignation: The establishment must disburse all entitlements within two weeks (15 days).

Failure to settle within these statutory timeframes exposes the employer to administrative fines and penalties under the MHRSD compliance schedule.


Frequently Asked Questions (FAQ)

Can an employer reject my notice period reduction request on Qiwa?

Yes. Under Saudi Labor Law Article 75, both parties are legally bound by the contractual notice period. If you request a reduction via Qiwa and the employer declines or ignores the request, you must complete the full statutory notice period (typically 60 days) to avoid financial liability under Article 76.

Does the notice period still count if my contract has already expired?

No. If your fixed-term contract has expired and was not renewed on Qiwa, you are not subject to a notice period. You are free to transfer your sponsorship to a new employer immediately or request a Final Exit visa without serving notice.

How is a notice period buyout deducted from End of Service Benefits (ESB)?

If you reach an agreement with your employer to leave immediately under Article 76, the gross wage for the unserved days is legally deducted from your accrued final entitlements (accrued salary + annual leave balance + End of Service Benefits). If your total entitlements are insufficient to cover the buyout, you must pay the remaining balance directly to the establishment.

Can I look for another job during the notice period?

Yes. Under Article 78 of the Saudi Labor Law, if the employer gave notice of termination, the worker has the legal right to take one full day off per week or eight hours during the workweek with full pay to search for another job or attend interviews.

What should I do if my employer agrees in writing to shorten the notice but refuses to update Qiwa?

If you have written evidence (such as an email from an authorized HR representative, an official memo on company letterhead, or a signed separation agreement) and the employer refuses to approve the date on Qiwa, file an electronic grievance immediately through the MHRSD portal under the Amicable Settlement (Waddi) service. The labor conciliator will enforce the written agreement and compel the establishment to update Qiwa.


Need Expert Assistance with Qiwa & Labor Disputes?

For corporate compliance assessments, sponsorship transfer facilitation, or labor dispute resolution before MHRSD Amicable Settlement committees, explore our dedicated Qiwa Platform Compliance Hub or contact our compliance specialists for tailored legal guidance.