Director of Labor Relations Department in the Public Authority for Manpower (PAM) Dr Madlol Al-Thuraifi confirmed the issuance of an administrative circular requiring employees with indefinite contracts, who intend to resign, to work for three months (notice period) from the date of submitting their resignation letter or pay the cash equivalent.
Al-Thuraifi explained the notice period is given for the resigning employee and the employer to have enough time to complete procedures or settle differences, if any. He said this step was taken in a bid to ensure that the employers and employees maintain good relations.
For workers under fixed-term employment contracts, they have to complete the period stipulated in the contract; otherwise, they will be required to pay the cash equivalent for the remaining period, Al-Thurafi added.
In both cases, the employer has the right to deduct the amount from the indemnity or end-of-service pay of the employee. If the employer rejects the cash compensation, the employee should prove it in the Labor Relations Department or the unit in charge of the company’s file, Al-Thuraifi concluded
Source: Arab Times