Employment · Legal glossary
Release and dischargeIn Arabic: المخالصة
Definition
A release and discharge is a signed acknowledgement that a party has received what was due and discharges the other party from it. It is used when employment ends, and also when two parties settle a commercial account.
How it varies across the GCC
In Saudi Arabia any release or settlement of the worker’s rights under the employment contract is void while the contract is in force, unless it is more beneficial to the worker (Labour Law, article 8). The employer pays the worker’s rights within one week of the end of the contract, or within two weeks if the worker ended it (article 88). In the UAE the end-of-service award is calculated under article 51 of Federal Decree-Law No. 33 of 2021. The release records that it was received. It does not create a new right.
The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.
Sources
Official texts for the points on this page. General information, not legal advice. An article number is cited only where it was verified.
- Saudi Labour Law, art. 8, 88https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/08381293-6388-48e2-8ad2-a9a700f2aa94/1
- UAE Federal Decree-Law No. 33 of 2021, art. 51https://uaelegislation.gov.ae/ar/legislations/1541