Prepared from the official page
Under Article 77 of the Labour Law: if a contract is ended for a reason that is not legitimate, and the contract sets no compensation for this, the harmed party gets 15 days' wage for each year of service (open-ended contract) or the wage for the rest of the term (fixed-term contract), and never less than 2 months' wage.
Steps
- Check your contract: is it fixed-term or open-ended?
- The Article 77 calculation applies if your contract sets no compensation for ending it without a legitimate reason.
- Open-ended contract: 15 days' wage for each year of your service.
- Fixed-term contract: the wage for the rest of the contract term.
- In both cases it is not less than 2 months' wage. The article gives it to the party harmed by the ending, worker or employer.
- If the employer ends an open-ended contract for a legitimate reason, he must give you written notice at least 60 days before if you are paid monthly, or 30 days if not (Article 75). If he does not keep to it, he pays you an amount equal to your wage for that period (Article 76).
- Article 77 was last amended by Royal Decree M/46 of 1436 AH; the 1446 AH amendments did not include it, per the Bureau of Experts at the Council of Ministers website.
- If you and your employer disagree, file a free “amicable settlement” request on the Ministry's e-services portal: choose “Amicable Settlement”, then “File a case”, choose the case topic, and attach your contract and papers.
- Attend the session on time. If there is no settlement, a record is issued, and then you can file a case at the labour court.
Have ready:
- Your work contract, or proof of your work with the employer
- Your start date, the date the contract ended, and your last wage
- The papers needed for your type of case
- A legal power of attorney if someone files for you
