One decision can change your Saudi end-of-service award by tens of thousands of riyals: whether you resign or are terminated. The statutory formula is the same in both cases, but resignation triggers a reduction tied to how long you have worked.
Here is how the two outcomes compare, and the service milestones that matter most.
Termination pays the full award
If your employer ends the contract, you receive the full award — half a month per year for the first five years, then a full month per year. No reduction applies.
Resignation reduces it on a sliding scale
Resign with under two years of service and you receive nothing. Between two and five years you keep one-third; between five and ten years you keep two-thirds; and once you reach ten years you receive the full amount, the same as termination.
The milestones worth waiting for
Because the scale steps up at two, five and ten years, a few extra weeks of service can move you into a higher band. If you are close to one of those thresholds, it is worth calculating both scenarios before you hand in your notice.