What is the Article 77 of the labor law?
Asked by: scraper | Last update: September 21, 2026Score: 0/5 (0 votes)
Article 77 of the Saudi Labor Law governs financial compensation when either an employer or an employee terminates an employment contract without a valid, lawful reason. It applies if the contract does not already stipulate a specific termination compensation.
What is article 77 of the labor law?
Article 77. 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 indefinite term contracts: an amount equivalent to fifteen-day wage for each year of the worker's employment. 2 ...
Can I refuse to change my contract?
If you are unhappy with the change, you can usually refuse. But there are some exceptions – for instance, if your contract allows your employer to make the specific change and the change is reasonable. You need to let your employer know if you are not happy with the change they are trying to make.
How does article 77 affect businesses?
For employers, Article 77 carries significant financial and legal risks if mishandled. Common risks include: Paying excessive compensation due to poorly drafted contracts. Misclassifying lawful and unlawful termination.
What is a valid reason for resignation in Saudi Arabia?
Significant Changes to Employment Terms: Employees can resign if there are substantial and unfavorable changes to their employment terms. Failure by the Employer to Adhere to Contract Conditions: If an employer does not fulfill their contractual obligations, it constitutes a valid reason for resignation.
After termination of contract how much penalty Saudi labor law article 77 - It is about penalty
Can a company terminate an employee without notice in Saudi Arabia?
Article 80 allows employers to terminate an employee without notice in cases of serious misconduct, subject to strict legal conditions. Can an employer terminate immediately under Article 80? Only when serious misconduct is proven and proper legal procedures are followed.
What is a strong reason to resign?
Wanting more growth or challenge. Relocating for personal or family reasons. Looking for a better work-life balance. Recovering from layoffs or company restructuring.
Who does article 77 apply to?
Article 77 eliminates the common law distinctions between principal in the first degree (“perpetrator”); principal in the second degree (one who aids, counsels, commands, or encourages the commission of an offense and who is present at the scene of the crime— commonly known as an “aider and abettor”); and accessory ...
How to calculate final settlement in Saudi Arabia?
It's calculated based on your last salary and years of service: half a month's wage for each of the first five years and one month's wage for each subsequent year. Partial years are calculated proportionally.
What is Section 77 3 of the Labour Relations Act?
Section 77(3) provides that the Labour Court has concurrent jurisdiction with the civil courts to hear and determine “any matter concerning a contract of employment, irrespective of whether any basic condition of employment constitutes a term of that contract.”
What not to disclose to HR?
The general rule is don't bring your everyday complaints to HR. They're not there to make your job better or easier and they might fire you simply because they don't want to hear it. This is usually legal.
What are 6 things that void a contract?
We'll cover these terms in more detail later.
- Understanding Void Contracts. ...
- Uncertainty or Ambiguity. ...
- Lack of Legal Capacity. ...
- Incomplete Terms. ...
- Misrepresentation or Fraud. ...
- Common Mistake. ...
- Duress or Undue Influence. ...
- Public Policy or Illegal Activity.
What is revenge resignation?
Revenge resignation (or "revenge quitting") is the act of abruptly leaving a job, often with little to no notice, to intentionally cause disruption or make a statement against an employer, typically in response to toxic work environments, burnout, or perceived unfair treatment. It is a calculated move designed to disrupt company operations, such as leaving during a peak season or key project.
What is the compensation for termination of employment?
When you are dismissed from work, you are legally entitled to receive all earned and unpaid wages immediately, including pay for any unused PTO or vacation days. You may also be eligible for severance pay, payment in lieu of notice, and government unemployment benefits depending on your location and employment contract.
What are the main rights of employees under US labor laws?
Employees in the United States have the legal right to fair compensation (minimum wage and overtime), a workplace free from discrimination and harassment, safe working conditions, the ability to collectively organize, and unpaid, job-protected medical or family leave if eligible.
What is Article 75 of the labor law?
Article 75:
If the contract is of indefinite duration and the salary is paid monthly, either party may terminate it for a legitimate reason, as follows: a. If the termination is initiated by the employee, they must provide written notice to the employer at least thirty (30) days prior to the termination date.
How many days to get final settlement?
It is a common practice to finalise the process within 30-45 days from the employee's last working day. If the employer fails to fulfil the FnF settlement requirements, the employee can contest it legally, and the employer will be liable to pay interest on all the dues as a penalty.
What is Article 77 of the Saudi Labour law?
Article 77 of the Saudi Labor Law governs the financial compensation awarded to either party (employer or employee) when an employment contract is terminated without a valid legal reason.
How to calculate gratuity for 2 years?
2. UAE Gratuity Calculation (Federal Decree-Law No. 33 of 2021)
- First 5 years: Gratuity = Daily Wage × 21 × Years of Service.
- Beyond 5 years: Gratuity = (Daily Wage × 21 × 5) + (Daily Wage × 30 × (Years of Service - 5))
- Cap: Total gratuity cannot exceed 2 years' basic salary (24 × Monthly Basic Salary)
What is rule 77?
Rule 77— District Courts and Clerks. (a) District Courts Always Open. The district courts shall be deemed always open for the purpose of filing any pleading or other proper paper, of issuing and returning mesne and final process, and of making and directing all interlocutory motions, orders, and rules.
What are the 7 stages of a case?
Stages of a Criminal Case
- Arrest. Criminal cases usually begin with the defendant's arrest by police. ...
- Bail. Making Bail. ...
- Arraignment. A defendant's first court appearance is known as the arraignment. ...
- Indictment or Information. ...
- Preliminary Hearings and Pre-Trial Motions. ...
- Trial. ...
- Sentencing. ...
- Appeal.
What happens if a country doesn't cooperate with the ICC?
Without cooperation, ICC investigations and prosecutions can be severely delayed or rendered impossible.
What not to say when leaving a job?
What not to say in a resignation letter
- Criticism. If you've hated the job, hated your colleagues, or hated the company culture, it can be tempting to let rip with your reasons for quitting. ...
- Oversharing. ...
- Your joy at leaving. ...
- Inappropriate language. ...
- Should resignation letters include a reason for leaving?
What is your 3 weaknesses' best answer?
The best answer to "what are your 3 weaknesses?" avoids cliché responses like "I'm a perfectionist". Instead, provide genuine, non-critical skills you are actively improving. Use this formula: State the weakness, explain the impact, and share the active steps you are taking to improve.
What is silent firing?
"Silent firing" (also known as "quiet firing") is a workplace phenomenon where an employer deliberately neglects or mistreats an employee to pressure them into quitting, rather than formally terminating them. Managers often do this to avoid severance pay, unemployment claims, or the legal hurdles of a formal dismissal.