Compensation for termination of the employment contract in Saudi Arabia
As we mentioned earlier, the Saudi labor system identifies a number of legitimate reasons for terminating an employment contract, but what if the contract is terminated for another illegitimate reason?
The Saudi Labor Law recognized the right to compensation by the party who terminated the employment contract for an illegal reason to the other party. عقوبة القتل العمد في القانون السعودي
The value of compensation and the method of payment is determined according to the type of employment contract. Compensation for termination of the employment contract for an illegal reason is as follows:
Fixed-term employment contract
If the work contract is terminated by one of the parties for an illegal reason, and the contract is for a fixed term, the due compensation is calculated at the value of the wage for the remaining period of the contract.
In the event that there is a clause in the employment contract that stipulates that an amount of money be paid upon the termination of the employment contract for illegal reasons, that agreed amount must be paid.
The employment contract is for an indefinite period
As for cases of indefinite-term employment contracts, the value of compensation becomes equal to fifteen days’ wages for each year of service.
Bearing in mind that the amount of compensation payable may not be less than the wage of two months of work for the worker. لائحة اعتراض على حكم
If you are looking for a compensation lawyer in Riyadh and the Kingdom, contact us at a lawyer in Riyadh.
A topic related to our article, termination of the work contract by the worker: the penalty for wife beating in the Saudi system
