In a new victory for workers' rights and a reinforcement of the principles of effective justice in the Kingdom of Saudi Arabia, the Labor Court of Appeal upheld a lower court ruling affirming a worker's right to leave their job immediately without prior notice or the required notice period, if the employer is found to be late in paying their financial dues. The court considered wages to be the cornerstone and backbone of the contractual relationship, and any breach of this right to constitute a violation of the essence of the contract.
Details of the ruling and the basis of the legal position
The court ruling was based directly and decisively on Article 81, Paragraph 1 of the Saudi Labor Law , which serves as a lifeline for employees in such cases. This article grants the employee the right to terminate the contract and leave work while retaining all their legal rights (including end-of-service benefits) if the employer breaches their essential contractual or legal obligations. During the proceedings, the court considered the establishment's admission of delayed payment of a portion of the wages as conclusive and unequivocal evidence of negligence, thus legally justifying the employee's decision to unilaterally terminate the contractual relationship without incurring any penalties or compensation payable to the employer.
Article 81: The legal protection of the worker
This ruling highlights the importance of Article 81 of the Labor Law, which addresses what is legally known as "arbitrary dismissal" or "lawful termination by the employee." Historically, labor disputes revolved around proving harm, but with recent amendments and judicial applications, simply proving a delay in wages (through the Wage Protection System or an acknowledgment) is now sufficient to invoke this article. This trend reflects a significant development in the Saudi legislative environment, which aims to create a fair balance between the two parties in production.
Economic and social dimensions of governance
The impact of this ruling extends beyond the parties involved in the case, setting a significant legal precedent that affects the Saudi labor market as a whole. The importance of this ruling lies in the following points:
- Enhancing financial security: The ruling establishes the employee’s right to financial security, emphasizing that the salary is not a grant but a right in exchange for work, and that delaying it threatens the living stability of the worker and his family.
- Discipline of establishments: The ruling represents a strong deterrent to defaulting establishments, as it sends a clear message that leniency in paying wages will lead to the loss of human talent without the ability to compel them to stay or demand compensation from them.
- Improving the work environment: This contributes to raising the attractiveness of the Saudi labor market by guaranteeing rights, which is in line with the Kingdom’s Vision 2030 goals of improving the quality of life and the business environment.
Conclusion: A victory for swift justice
The Court of Appeal rejected all the employer's attempts to overturn the ruling, accepting the appeal in form but rejecting it on its merits, thus affirming the validity of the initial judgment and its complete conformity with legal regulations. The judicial panel concluded that the core of the dispute lay in the "reason for leaving employment," and the court found the reason legitimate based on evidence. This brought the case to a close with a clear victory for workers' rights, confirming that the employment relationship is based on mutual obligations and that failure to pay wages releases the worker from the constraints of the contract.
