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Cairo: A Saudi court has ordered a Riyadh-based company to pay SR275,000 in compensation to an ex-employee who was dismissed following a dispute over overdue pay.
A labour circuit at the appeals court in Riyadh ruled that the female employee was entitled to compensation after she was arbitrarily fired for her absence from work, which was due to the company’s failure to pay her salary for two months, according to Okaz newspaper.
The woman filed a lawsuit, claiming that the privately owned firm had unjustly dismissed her and imposed penalties and fines without cause. In response, a representative of the employer argued that the claimant had stopped reporting to work, insisting that the company had acted legally and requesting that the suit be dismissed.
However, the court found that the woman had been absent due to the employer’s failure to pay her for two months. The court ruled that her absence was justified under labor law, and that she was entitled to compensation for her arbitrary dismissal.
The compensation covers damages for the legal notification period, her leave balance, and her end-of-service gratuity. Additionally, the court ordered the company to provide the ex-employee with a certificate of experience in accordance with Saudi labour law. The ruling is final.
Saudi Arabia is home to a large community of expatriate workers. In the first quarter of the year, a total of 31,655 labor lawsuits were filed in the Kingdom, according to official figures.
Riyadh accounted for the largest share of these cases with 10,000 suits, followed by Mecca with 7,700, and the Eastern Province with 4,590.
Saudi Arabia has introduced a mechanism to facilitate the amicable settlement of disputes between employees and employers, aiming to ensure stable relationships between contractual parties.
Efforts to reach a friendly settlement are the first phase in handling labour disputes, during which mediation is used to bring the parties closer together in hopes of reaching a mutually acceptable compromise. If no agreement is reached, the suit is referred to a labor court within 21 days of the first settlement session.
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