Court Orders SR275,000 Compensation to Woman for Arbitrary Dismissal

The Court of Appeal in Riyadh ruled in favor of awarding a female employee SR275,000 in compensation for her arbitrary dismissal from service before the completion of her contract period. The ruling, which is final and enforceable, also grants her a certificate of experience in accordance with the provisions of the Labor Law to prevent any harm to the worker’s reputation or reduction in job opportunities.

The woman was fired from a private company due to her absence from work, which resulted from her salary being delayed for two months and from being subjected to verbal abuse. This prompted her to seek compensation for arbitrary dismissal at the labor office.

A representative of the company responded with a memorandum stating that the plaintiff had stopped working, and therefore, the company had the right to dismiss her. However, the Court found that the plaintiff had the right to be absent from work due to non-payment, based on Article 81 of the Labor Law. This article grants workers the right to leave work without notice under certain circumstances, while maintaining all their legal rights.

Based on Article 77 of the Labor Law, the Court ruled that her employer was in breach of the contract, which had 18 months and 15 days remaining. Therefore, the employer was liable to pay compensation for the wages for the notice period, leave balance, and the end-of-service allowance.