FAQs

• No provisions included in the Law, deeming the restructure or the financial conditions of the establishment itself to be among the cases, in which the contract is terminated, unless the contract is terminated in accordance with any of the other cases mentioned in Article (74) of the Saudi Labor Law, or is terminated by either party under Articles (80) and (81), as the case may be. If the termination is not made in accordance with any of the above-mentioned articles, the party affected by termination shall be entitled to compensation for the termination of the contract for illegal reason.
• In accordance with Article (77) of the Saudi Labor Law, stipulating that unless the contract includes specific compensation for the termination by either party for an invalid reason, the party affected by termination shall be entitled to compensation as follows:

1. For non-fixed term contracts: an amount equivalent to fifteen-day wage for each year of the worker’s employment.
2. For fixed-term contracts: the wage for the remainder of the contract term.
3. The compensation referred to in paragraphs (1) and (2) of this Article shall not be less than the worker’s wage for two months. Furthermore, the worker is entitled to end of service reward in accordance with Article (84) and to a wage for the unused leaves in accordance with Article (111) of the Saudi Labor Law.

Expressing the desire not to renew the contract may not be deemed a resignation. It is a right guaranteed to both parties. If the employment contract stipulates that a notice of desire not to renew shall be served a specified period before the end of the contract, the notice shall then be served. Otherwise, if the party, who desire not to renew, violates such specified period to notify the other party, the affected party is entitled to adhere to renew the contract.

The fixed-term contract may be terminated in the following cases:

1- If both parties agree to terminate it, provided that the worker’s consent is in writing.

2- If the term specified in the contract expires, without having the contract been explicitly renewed in accordance with the provisions of this Law, the contract shall remain valid until the expiry of its term.

4- When the worker reaches the age of retirement.

5-Force majeure.

6- Permanent closure of the firm.

7- Termination of the line of business for which the worker is employed, unless agreed otherwise.

8-Any other case provided for by any other law.

If the termination is not made in accordance with any of the above-mentioned Articles, the termination is deemed invalid. Therefore, the party affected by termination shall be entitled to compensation for the termination of the fixed- term contract before its expiry for illegal reason.

The purpose of the service is to preserve the rights of the relevant parties (employer and employee), to provide a work environment that helps the employees stability and raise their productivity, to ensure that the establishments comply with the laws and provisions of the Labor Law, to verify the validity of contract data, and to reduce the labor disputes and claims.

Link of Qiwa for Contract Authentication: https://www.qiwa.sa/ar/qiwa-services

Pursuant to Article (51) of the Labor Law: The employment contract shall be executed in duplicate, one copy to be retained by each party. However, a contract shall be deemed to exist even if not written. In this case, the worker alone may establish the contract and his entitlements arising therefrom by all methods of proof. Either party may, at any time, require to write the contract. As for workers of the government and public corporations, the appointment decision or order issued by the competent authority shall serve as the contract.

The non- Saudi employment contract shall be fixed and in writing. If the term is not specified in the contract, the term of the work permit shall be deemed the term of the contract.

1. A fixed-term employment contract shall be terminated upon expiration of its term. If both parties continue to implement it, the contract shall be deemed to have been renewed for a non-fixed period of time, subject to the provisions of Article 37 of this Law for non-Saudi workers.
2. If a fixed-term contract contains a clause providing for its renewal for a similar term or a specified term, the contract shall be renewed for the agreed upon period. If the contract is renewed for three consecutive terms, or if the original contract term and the renewal period amount to four years, whichever is less, and the parties continue to implement it, the contract shall become a non-fixed term contract.

• In the case of temporary disability arising from a work injury, the injured party shall be entitled to financial aid equal to his full wage for 60 days, then 75% of the wage for the entire duration of the worker's treatment. If one year elapses, or it is medically determined that the injured party’s chances of recovery are improbable or that the worker is not physically fit to work, the worker's injury shall be deemed a total disability. In such case, the contract shall be terminated and the worker shall be compensated for the injury. The employer shall not be entitled to recover payments made to the injured worker during that year.
• If an injury results in a total permanent disability or the death of the injured person, the injured person or his/her eligible beneficiaries shall be entitled to a compensation equal to the injured person's wages for three years, with a minimum of 54,000 riyals. If the injury results in a partial permanent disability, the injured person shall be entitled to a compensation equal to the percentage of the estimated disability in accordance with the approved Disability Percentage Guide schedule multiplied by the amount of compensation for total permanent disability.

In accordance with Article (91) of the Saudi Labor Law:

1- If a worker, as a result of his own fault or the worker's violation of the employer’s instructions and not as a result of a third party’s fault or a force majeure, causes loss, damage, or destruction to machinery or products owned by the employer while in the worker's custody, the employer may deduct from the worker’s wage the amount necessary for repair or restoration to the original condition, provided that such deductions do not exceed an amount equivalent to five-day wage per month. The employer may file a grievance, if necessary, demanding more deductions if the worker has other properties, from which collections may be made. The worker may file a grievance with the Commission for the Settlement of Labor Disputes regarding the allegations attributed to the worker or the employer’s estimation of the damages. If the Commission for the Settlement of Labor Disputes rules that the employer is not entitled to claim such deductions or if it awards the employer a lower amount, the employer shall return to the worker the amounts unjustifiably deducted, within seven days from the date of the award.

2-Either party shall file its grievance within 15 working days; otherwise, their right to do so shall be forfeited. For the employer, the date of filing the grievance shall be as of the date the incident is discovered, while for the worker, it shall be as of the date of being notified of the same by the employer.

No amount shall be deducted from a worker’s wages against private rights without the worker's written consent, except in the following cases:

1. Refund of loans extended by the employer, provided that such deductions do not exceed 10% of the worker's wage.

2. Social insurance or any other contributions due from workers as provided for by law.

3. Worker’s contributions to thrift funds or loans due to such funds.

4. Installments of any scheme undertaken by the employer involving home ownership programs or any other privilege.

5. Fines imposed on the worker due to the violations the worker commits, as well as deductions made for damage the worker causes.

6. Any debt collected in implementation of a judicial judgment, provided that the monthly deduction shall not exceed one quarter of the worker's wage, unless the judgment provides otherwise.

First to be collected is alimony, followed by food, clothing and accommodation debts, before other debts.

In all cases, deductions made may not exceed half the worker’s due wage, unless the Commission for the Settlement of Labor Disputes determines that further deductions can be made or that the worker is in need of more than half of the worker's wage. In the latter case, the worker may not be given more than three quarters of the worker's wage.

The customer shall refer to the labor office, at which the employee works, and file the complaint to the direct manager. Thus, the customer can follow the complaint and be notified. If the direct manager does not provide the statement, the customer shall refer to the Ministry of Human Resources and Social Development and submit a written statement about the issue, as well as an acknowledgment of information validity, attached with their full data.

The customer shall follow up with the Complaints Office at the Ministry of Human Resources and Social Development through the call center, or go in person to the Ministry and show the number of the lodged complaint to ensure its validity and follow-up through the Ministry of Human Resources. Then, the customer will be contacted for information. For following the complaint, the customer shall show the following:

• Civil registry No.
• Establishment No.
• Telephone number
• The number of the complaint lodged with the labor office

• Visit Wadi platform provided by the Ministry of Human Resources and Social Development via the following link:
• https://www.mol.gov.sa/securessl/login.aspx
• Attach the employment contract, if any, or the evidence the labor relationships.
• Documents required by the type of dispute.
• The complainant’s identity and capacity. In the event that the applicant is an agent, the power of attorney shall be attached, provided that it stipulates that the applicant is entitled to reconcile, acquit and waive.