Delayed salaries justify leaving work without notice, according to Saudi law
In a new victory for labor rights and a consolidation of the principles of effective justice in the Kingdom of Saudi Arabia, the Labor Court of Appeal upheld a preliminary judicial ruling that recognizes the worker’s right to leave work immediately and without the need to provide a notice period, in the event that the establishment is proven to be late in paying his financial dues and wages on their specified dates.
Details of the court ruling
The court based its ruling on the principle that wages are a fundamental and essential element of the contractual relationship between the employee and the employer. The court considered the establishment's delay in paying salaries a serious breach of contractual obligations, thus granting the employee the full right to unilaterally terminate the contract while retaining all their legal rights and end-of-service benefits, without incurring any penalties or compensation payable to the employer for the failure to complete the notice period.
Legal basis: Article 81 of the Labor Law
This ruling is an implementation of the provisions of the Saudi Labor Law , specifically Article 81 , which serves as a lifeline for employees in specific circumstances. This article stipulates the employee's right to leave work without notice while retaining all their legal rights in certain situations, most notably if the employer fails to fulfill their essential contractual or legal obligations towards the employee. The court interpreted the delay in salary payments as one of the clearest examples of such a fundamental breach.
Context of Saudi labor market reforms
This ruling cannot be viewed in isolation from the broader context of legislative developments in the Kingdom's labor market. In recent years, the Ministry of Human Resources and Social Development has launched several initiatives, such as the Wage Protection Program , which aims to monitor salary payments for all private sector employees (both Saudi and expatriate). This judicial ruling reinforces the strength of these systems, emphasizing that the judiciary is vigilant against any infringement on employees' financial rights.
Legal and economic impact of the ruling
This ruling is of paramount importance on both legal and economic levels; it reinforces the principle of financial security for employees, thereby enhancing the attractiveness of the private sector work environment. It also sends a strong message to defaulting establishments that adhering to payroll schedules is not an administrative option but a strict legal obligation. The Court of Appeal rejected all the employer's attempts to overturn the ruling, affirming that the establishment's admission of delaying a portion of the wages constitutes sufficient evidence of guilt to justify the employee's immediate resignation.
In conclusion, this ruling sets an important legal precedent that lawyers and legal advisors can rely on in similar cases, reducing the duration of litigation in the future, saving court time, and ensuring that affected workers receive their rights quickly and effectively.
