OLEP4CL Part IV (Termination of Contract)


OLEP4CL Part  IV – Termination of Contract (By Employer and By Worker)  

 

1St Batch

1St Batch

Termination of Contract

 

Q:       When is a contract of employment deemed terminated?

A:         An employment contract is deemed terminated in the following events:

a)      Expiration of the term or period of contract and the worker express his intention not to renew it. b)     Force majeure;  c)      Death of the worker;  d)     Death of employer in certain cases;  e)      When the workers attain the age of retirement; f)       Total disability of worker to perform work; and  g) Pre-termination of contract by either party.

Pre-termination includes the following:

1.   If  both parties agree to terminate the contract, provided that the worker’s consent be in writing.

2.  Upon the request of one of the two parties in case of contract of unspecified term.

3. Termination by the employer or worker for authorized causes;

4. Resignation by worker;

5. Serious illness of worker resulting in long  absence from  work;

6. Bankruptcy, dissolution and authorized shutdown of employer’s business, and other cases. (Arts. 74,77, 79 , 80, 81, 82, , 84, ).

I. VALID GROUNDS FOR TERMINATION BY EMPLOYER

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109 thoughts on “OLEP4CL Part IV (Termination of Contract)

  1. Sir,

    I would like to refer to you the statement below in which my Department insisting me to sign. I’m in doubt, it might jeopardized my ESB claims and all legal dues from my company. I’ve been working with my company (STC) for Eleven (11) years.
    Please shed some light on this for me. Thank You…..

    = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =

    Declaration of acceptance of the termination of the employment contract of
    Specified period prior its expiration

    I, the employee xxxxxx bearing STC ID No: xxxxxxx of FILIPINO nationality declare my interest to terminate the employment contract which actually expires on 31 DEC. 2010 G. So that, it will end on 30/11/2010. After the approval of the company in accordance with the provisions of Article 74/1 of the labor code which stipulates that in case the two parties agree on its termination provided that the employee approval shall be made in writing. I cordially request my employer to settle my ESB (End of Service Benefits) and the current pending vacation balance. I fully understand by signing this agreement that, my employer is no longer held any responsibilities of mine in all respects from the date 01/12/2010 onwards.

    Declared person name:
    Date:
    Signature: ________________________

    Attested by the Human Resource / personnel department

    = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =

    • Hi Lar,

      Are all those going exit sign this note? If the answer is yes – then this note is required prior settlement of ESB as per interpretation of Saudi Labor Law Article 74/1 which says: “If both parties agree to terminate it, provided that the worker’s consent be in writing.”

      In my own understanding the said letter is a letter request from the employee asking his employer to settle all monetary obligations (ESB) as precribed in Article 84 of SLL.

      In other companies, a worker must signed a “Release, Waiver and Quitclaim” upon or after the worker receive all his entitlements. In STC case, a request and quitclaim are required prior settlement of of entitlements.

      Kung nakasanayan na ng STC ang ganitong kaparaanan then there’s nothing to worry. But try to ask a second opinion.

      Regards.

      Bong

      • Sir Bong, Salamat po sa pag-reply niyo.
        Pito (7) lang kami sa Department namin ang nabigyan ng ganito para malipat sa contractor ng STC, others pinauwi na sila noong October pa. Ang pinagtataka lang namin ay kung bakit hindi yung HR or Personnel Department ang mag-terminate sa contract namin sa STC, ok lang sana kung yung computation ng ESB is 100 percent na ibibgay sa amin, natatakot kami baka 2/3 lang ang ibibgay nila. Ang sabi ng Department namin ginawa daw nilang ganito para makalipat kami sa contractor nila at sinabi nila na nag-usap na daw sila sa HR na all our claims will be settled accordingly.

        Thanks again Sir…
        lhar/

        • Lar,

          We hope for the best na lang. Pero kung makakuha ka ng computation na hindi mo pa napirmahan or i mean baka makahanap ka ng source para makakuha ng kopya ng computation, bring the copy to POLO and show to them if the computation is right.

          Regards.

          Bong

  2. sir,

    nagstart po ako sa companya sept 9, 2008, natapos yung contrata ko sept 9 2010, now hindi ko po pnarenew yung iqama ko na mag expire nov16 2010, extend po ako ng 2months. ma i consider po nov 16 as end of contract na unspecified period of contract? ano po yung basehan na yung expiration of iqama as end of contract if unspecified period ung contrata? kasi po nag file ako ng exit a month before expired yung iqama ko. salamat po

    ojay

    • Jay,

      Malinaw na nagtatapos ang iyong kontrata last september 9, 2010. Nasa specified period ka at hindi unspecified period dapat nag submit ka ng notice of non-renewal of contract 1 month or 2 months before sept. 9, 2010. In your case, extension na ang pamamalagi mo sa kompanya dahil wala kang sinabi na may kontrata kayong bagong pinirmahan or sumang-ayon ka na automatically ma-renew ang iyong kontrata.

      Sa mga ganitong scenario dapat lamang alamin mo ang iyong employment status kung gusto mong ma-renew ito or ayaw mo na. Ayaw mo man o hindi dapat lang na ma-renew ang iyong iqama dahil kailangan ito as one of the requirement for the issaunce of exit or re-entry visa.

      Kung sakali na mag desisyon ka na hindi i-renew ang kontrata at mag extend lang muna, be sure that you have an agreement with your employer on this matter before you renew your iqama.

      Regards.

      Bong

  3. may reklamo po bayaw ko na sa ngayon ay nasa riyadh siya tapos napo contrata nya gusto nya na mag exit visa pero panapasa sya sa jeddah office ang sabi naman nila pangit ang patakaran kaya gusto nya sa riyadh mag exit sino po ba ang pwedeng lapitan pqara makauwi sya

    • Fred,

      Walang magawa ang employer kung gusto ng umuwi ang isang worker pagkatapos ng kontrata not unless there is a probable reason that the employer still needs the services of his worker or kailangan ng kapalit muna bago ito makauwi. Sabihin mo sa bayaw mo na kausapin ng masinsinan ang kanyang employer na gusto na niyang umuwi dahil tapos na ang knayang kontrata at wala na siyang balak i-renew ito. Kung sakaling ayaw pumayag at walang sapat na dahilan upang hindi siya pauwiin, dumulog na sa ating Philippine Overseas Labor Office at hanapin ang aking kaibigan na si Labor Attache Atty. Chavez.

      Bong

  4. Sir 1 year po ang bago kong iqama ngayon magtatapos po ito sa june… so hindi po pala ko pwedeng mag resign ngayong october para maka uwe ng november kahit po ayoko na…. at kung ituloy ko ang termnation of contract ko at lumagpas na ng isang buwan at d na ko pumasok may maitutulong po ba sakin ang polo labor office d2 sa al khobar? ano ano po ang pwedeng maging problema sa gagawin kong ito? maraming salamat po
    sa lahat ng payo at tulong…

    God Bless po !!!!

    • Mer,

      Malinaw na unspecified period na ang iyong employment status sa kompanya. So kung gusto mong umuwi, walang makakapigil sa iyo ngunit sayang ang mga benipisyo mo na dapat makuha kung taposin mo ang 4 na taong paninilbihan sa iyong employer. Kung sakaling on the go kana talaga at ma aprobahan ng iyong amo ang iyong request, ito ay hindi completion of contract kundi resignation ang kalabasan mo na maaring maging dahilan pa ng problema. Ngunit, gaya ng sabi ko sa iyo kung ayaw mo na talaga, walang magagawa ang iyong kompanya, huwag ka lang di papasok habang inaantay mo ang kanilang sagot dahil baka maging dahilan pa sa karagdagang problema. Nasa iyo ang desisyon. Kung gusto mong humingi ng tama at eksaktong payo, dumulog sa POLO, hanapin ang ating kaibigan na may “word of honor”” at “aksyon agad na labor attache” si Sir Labor Attache Des Dicang.
      Good luck!

      bong

      • Salamat po ng marame Sir Bong… may nag hi hire po kasi sakin na bagong company d2 din sa ksa kaya po gusto kong malaman ang mga repercusions bago ako sumubo… sa totoo po pinirmahan ko na po ang employment offer nila.. doble po ang sahod kumpara sa present employer ko ngayon…tawagan ko na lang po si Sir Des sa mga karagdagang tanong ko maraming maraming salamat po ulit sa tulong at payo.

        Mabuhay po kayo & God Bless !!!!

  5. Dear Sir Bong,

    Nakabakasyon na po ako at nakabalik na ko d2 sa KSA pero wala pa din po akong pinipirmahan na bagong kontrata… ano po ang direct email address nyo sir bong para maipadala k po ung contract k d2 sa present employer ko at mapayuhan nyo ko sa pag reresign ko…

    Maraming maraming salamat po sir & God Bless !!!

    • Mer,

      Pareho ang sagot ko sa inquiry ninyo ni JB.

      Kung ikaw ay magbabakasyon at wala kayong bagong pinirmahan na kontrata between you and the employer bago ka nagbakasyon or sa iyong pagdating galing sa bakasyon, ang iyong kontrata ay maging unspecified period. Therefore, your contract will end or magtatapos sa petsa na kung saan ma expire ang iyong iqama.

      Paki check mo nga ang iyong iqama kung 1 year ba or 2 years. Kung sakaling 1 year ito, sumulat sa iyong employer na ayaw mo ng mag renew ng kontrata “notice non-renewal of contract /non renewal of work permit.” Do not use the term or the word – resign. Your notice must be at least 1 month pior to the expiration date of your iqama. It is better if you give the notice at least 2 months para sila makahanap ng iyong kapalit. Ang kalkulasyon ng ESB ay 1/3 dahil sa serbisyo ng worker sa kompanya na hindi bababa ng 2 taon at hindi lalagpas ng 5 taon (SLL: Art. 85).

      Tama ka, mas maganda kung naka registered mail para may pruweba na ikaw ay nagbigay ng notice sa kompanya.

      Pero kung two years validity ang iyong work permit, may karapatan ang employer na tumangi sa iyong kahilingan.

      Regards.

      Bong

  6. HI Sir Bong,

    I had found a new job and I am planning to terminate my contract on my pressent employer. My question is if the 1 month notice that i filled had elapsed and there’s no action on the part of the employer shall I contact the POLO office after tending my resignation or after the 1 month allowable time frame?

    If and when I was given an exit and comes back again without NOC am I still allowed to enter the kingdom?

    Looking forward to hear from you soon.

    Thanks and God Bless !!!

    • Mer,

      1st question: There is a provision in SLL that the employer have the right to extend the vacation or exit period if the worker terminate the contract if it is needed. Valid reasons such as: looking for replacement or when the replacement arrive, worker services is badly needed, etc. Ngunit ang employer ay binibigyan lamang ng 90 days na extension period para sa paalis na worker. After 90 days, if ever there is another extension, then it must be in writing with the consent of the worker.

      2nd question: Please check the Saudi Royal Embassy in our country about your status or you can ask your recruitment agency to inquire on your behalf. By the way, apply for a new passport if you wish to come back to KSA.

      Sorry for late reply.

      Regards.

      Bong

      • Thank you Sir Bong!

        Papano po kung after ng 1 month na grace period na binigay ko at ayaw ko ng pumasok pwede bang maging grounds to ng employer para kasuhan ako kase bse sa provision ng SSL may 90 days kamo cla…I got also the format letter from POLO regarding sa termination of unspecified contract .. tama po ba ung term na ginamit ko or the right wod na gagamitin is resignation ito po ung format ng ginawa ko pwede p bang paki check kung pwede to…

        October 8th 2010,

        Mr. Badrudeen Mousa
        Branch Manager
        Four Winds S.A. Ltd.
        P.O. Box 5921 Dammam 31432
        Kingdom of Saudi Arabia

        Thru: Mr. Jose Papachan

        Dear Sir:

        In accordance with my contract and Article 75 of the new Saudi Labor Law, I would like to advise the Management that I have decided to terminate my unspecified contract effective October 12th 2010. Please note that I have already completed 2 years of service since you hired me on March 18th 2010.

        I am also anticipating the payments of my final benefits on accordance with Articles 84 or 85 whichever is applicable, as well as my unused vacation days as per Article 111. I would also like to have a copy of my service certificate in accordance with Article 64.1. Also as per article 40, the company shall bear the cost of my return to my point of origin. Therefore, please communicate to me your arrangements on my repatriation under this article.

        May I personally thank you as well as the staff and co-employees for the exposure and experience I gained during my employment. My best wishes to the entire management

        Very respectfully yours,

        Elmer Cunanan Canlas
        Administrative Officer

        NOTE:

        Original of this letter was sent by registered mail and a copy hand delivered to you to ensure you receive this early notice so you may now search for my replacement.

        maraming salamat po sa tulong at payo

        mabuhay po kayo & GOD BLESS !!!

        • Mer,

          Nag extend ka ba kasi March 18, 2010 nakompleto mo ang 2 yrs. contract tapos October 12, 2010 ipa terminate mo ang kontrata. Please note that end of contract for unspecified period is the expiry date of your work permit or iqama.

          Bong

  7. Hi po.. I had filed my exit to my current company last August 2010. My employer agreed in my intension. Now my co worker also applied for final exit but my employer refuses to agree with him. ” Puros lahat daw ng mga pinoy ngsisipag exitan..” He threatened him to ban him in the kingdom for 2 years if he insist on his intension. The sad part he told that all people in his company going on final exit will be monitored monthly in the saudi immigration if someone will try to go to another company.

    My flight to the Philippines will be on Oct. 6 and I have already applied for a new job in another company. I am afraid this threat will create problem for me in the future.

    R_dlan

    • Mr R.

      May exit visa ka na at huwag kang matakot. Kung ikaw at ang mga kasamahan mo ay walang nagawang pagkakamali sa inyong trabaho na maging dahilan upang kayo ay ma ban, bakit kayo matakot? Payo ko, just keep on working, magpakumbaba at gawin ang trabaho ng mahusay at huwag magpa apekto sa mga pinagsasabi ng inyong amo.

      Kung sakaling totohanin niya ang kanyang banta na hindi kayo pauwiin na walang sapat na dahilan, tumawag sa Saudi Labor Office na malapit sa inyong area. You can find the numbers here in our blog, just click POLO Worldwide page at the top of our blog, once you’re there scroll down, tel. numbers and areas/location are found at the part of the mentioned page.

      Regards.

      Bong

  8. waiter ako sa isang palace and 2 years contract ko. 7 months pa lng ako dito pero gusto ko na magresign kase di sila sumusunod kung anu yung nasa kontrata. wala kame day off. overtime without pay pa ang nangyayari. napapagod na ang katawan ko sa trabaho. anu ba magandang gawin? ang ikinakatakot ko lang pag nag file ako ng resignation eh di ako payagan kase di pa tapos contract ko. i nid some advice. thanx!

    • Art,

      hindi lang ikaw ang may ganitong problema. hindi ka talaga papayagan kung mag resign ka. mas nakakabuti dumolog ka sa POLO OWWA inside diplomatic quarter at hanapin mo si Atty. Cesar Chavez at idetalye mo lahat sa kanya ang iyong problema.

      bong

  9. my contract will finished this coming April 16, 2010 and I dont want to sign a new contract, in other words i want to go for exit, because i want to transfer in other company, here also in KSA, but im afraid they make delay my paper for exit, becase one of my co employee he submit his exit paper, they aproved his exit paper after 3 months he will not received any money or salary starting he submit his exit paper he bring only his plane ticket. I dont want to experience same like this problem.

    Ad also I want to know how many months or years if you want to come back here in KSA after you go for exit?

    Thank You and Best Regards,

    • Dear MArlon,

      You need to have an exit visa before you can come back to KSA with new employer. You must submit your notice letter not to renew your contract as early as possible so that they can find a replacement sa post or position you are currently occupying with your employer. Try to talk with your employer professionaly and with humility that you dont want or no desire to renew your contract.

      As for NOC, there are many OFWs who filed exit and was able to return in KSA with new employer. Just note you must obtain an “EXIT VISA”. Pagdating sa Pinas, mandatory na palitan ang iyong pasaporte. Pero humingi muna ng payo sa Agency mo kung wala ba itong problema.

      Huwag padalos dalos magdesisyon na sa tingin mo alanganin.

      Bong

      Note: Kung andito ka sa Riyadh, inanyayahan kitang dumalo sa OFW FOrum ngayong 22 ng Enero sa 2nd Industrial ARea, New Islamic Center, malapit sa Saudi Ceeramics Employees accomodation.

  10. I wa a victim of signing an Arabic paper saying that is my Ramadan Eid, extra off but actually found later that it is already requesting to end my contract. i am a nurse in King Saud Chest Hospital under Ministry of Health. As of this moment,my chief nurse Azza Mohd Abdulhadi is harassing me to go to exit. Threatening me to leave the kingdom with force and hiring police to pick me up. I am staying because i am waiting for my graduatee, my exit visa expires on october 11, 2009 but i dont know why she hurrirdly wants me to go as if she is hiding something that if ill stay long, she will be in trouble, I am very helpless i hope POLO will help me.

    • Dear Luz,

      Sad to know that you signed an Arabic document without asking the English translation. I advice you to visit our Embassy/POLO/OWWA about your problem asap. Magpalaam ka sa hospital na may bisitahin ka and instead go to our Embassy/Polo/Owwa to seek advice.

      Regards,

      Bong

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