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I was suddenly dismissed from my job for no clear reason. Am I entitled to compensation?

A common question prepared by our teamWrongful Termination & End-of-Service Benefits 2

Translated from Arabic.

I have worked at a private company in Riyadh for six years on an indefinite-term contract, paid monthly. Two weeks ago the HR manager called me in and told me my services were terminated with immediate effect, without prior notice and without citing any violation I had committed, saying the decision was purely administrative. I had never received any warning or been investigated during my entire employment. My question: is this unfair dismissal? What compensation am I entitled to in addition to end-of-service benefits? Which authority do I complain to, and is there a set period within which I must file my claim?

Lawyers' answers (1)

KSA Lawyers editorial team

A general editorial answer prepared by our team

Translated from Arabic.

Thank you for contacting the KSA Lawyers platform. What you describe raises the possibility that the contract was terminated without a valid reason. The Labour Law sets out specific cases in which the employer may terminate the contract without an award or compensation; these relate to serious misconduct by the worker and usually require that the worker be given an opportunity to state his objections. Termination by a mere administrative decision without lawful justification may be considered unlawful termination.

In that case, under the Labour Law the worker is entitled to compensation for unlawful termination. If the contract does not specify an agreed amount, the rule for an indefinite-term contract is that compensation is calculated at fifteen days' wage for each year of service, with a minimum of two months' wage, and the court assesses this according to the facts.

In addition, there are end-of-service benefits, calculated at half a month's wage for each of the first five years and a full month's wage for each year thereafter, based on the last wage. You may also be entitled to compensation for the notice period you were not given, which for an indefinite-term contract for a monthly-paid worker is sixty days, plus pay for the days you worked and your balance of unused leave.

As for the practical steps, we advise the following:

1. Gather your documents: the contract, payroll records or bank statements, the dismissal letter or any message proving the termination, and your social insurance (GOSI) record. 2. Submit an amicable settlement request through the Wudi platform of the Ministry of Human Resources and Social Development (MHRSD). 3. If settlement fails, the case is referred or filed to the labour court through the Najiz platform.

Please note that the Labour Law sets a period for hearing labour claims, generally twelve months from the date the employment relationship ends, so it is advisable to act without delay.

The outcome of the case cannot be guaranteed, as it depends on the evidence and the details of the contract. We therefore recommend consulting a lawyer who specialises in labour cases to review your documents and assess your entitlements accurately.

KSA Lawyers team

Answers are general legal information based on what the asker described. They aren't binding legal advice and don't replace a licensed lawyer who has reviewed the documents.