Labor disputes lawyer in Riyadh — Nova Legal, Al-Ishbiliyah district, Al Sahaba Road: comprehensive representation in unfair dismissal, end-of-service benefits, and labor disputes before the labor courts, from amicable settlement to attending hearings and enforcing judgments.
If your employment was suddenly terminated without justification, or your employer delayed paying your end-of-service benefits, you're facing one of the most common labor disputes in Saudi Arabia: unfair dismissal and claiming your entitlements. The golden rule here is simple: don't wait — statutory deadlines under labor law cause rights to lapse.
In this guide, a labor claims lawyer in Riyadh explains everything you need to know: the definition of unfair dismissal and when it applies, how to calculate your end-of-service award under the 2026 rules, the steps to file an unfair dismissal case in Saudi Arabia before the labor court, and the documents you'll need to prove your claim.
What Is Unfair Dismissal, and When Does It Occur Under Saudi Labor Law?
The Labor Law doesn't define unfair dismissal in a single phrase, but it's understood in practice as an employer terminating an employee's contract for an unlawful reason, or outside the cases and procedures the law permits, or on a pretextual or trivial ground. This contrasts with the cases where the law allows termination without compensation — most notably those set out in Article 80 of the Labor Law; any dismissal falling outside those grounds remains unfair.
Another important benchmark: for indefinite-term contracts, termination must be for a lawful reason and preceded by notice — 60 days if the wage is paid monthly, and 30 days otherwise, when termination is initiated by the employer, under Article 75. Termination that violates the lawful-reason requirement constitutes unfair dismissal and entitles the employee to compensation under Article 77.
- Termination with no lawful reason, or for a pretextual one.
- Termination in response to an employee's complaint or their exercise of a statutory right (such as taking leave or joining a union).
- Termination without prior notice in cases where the law requires it.
- Termination that bypasses the employee's statutory right to grievance and internal investigation.
There's a fundamental distinction between unlawful dismissal and merely failing to observe the notice period: a notice-period violation alone entitles the employee to an amount equal to their wage for the remaining notice period (Article 76), while dismissal without a lawful reason is subject to compensation under Article 77. Reviewing each case on its own facts is exactly what our law firm specialized in labor law does.
How Much Is Unfair Dismissal Compensation? Article 77 and Its Components
Entitlement to compensation for unfair dismissal is governed by Article 77: if the employment contract doesn't include a specified amount of compensation for termination without a lawful reason, the aggrieved party is entitled to compensation assessed by the competent authority, taking into account the circumstances of the termination and the material and moral damage suffered. Compensation is calculated under two rules that preserve a minimum floor:
| Contract Type | Compensation Calculation Rule | Minimum |
|---|---|---|
| Indefinite-term contract | 15 days' wage for each year of service | Not less than two months' wage |
| Fixed-term contract | Wage for the remaining contract period | Not less than two months' wage |
A worked example: an employee on an indefinite-term contract who served 8 years, with a monthly wage of SAR 10,000, is entitled to preliminary compensation of 15 days' wage × 8 years — roughly four months' wage (approximately SAR 40,000), without affecting the minimum floor. An employee on a fixed-term contract with 6 months remaining is entitled to the wage for that remaining period. These are illustrative approximate figures — the final assessment depends on the contract and the court's judgment based on the evidence and circumstances of termination.
Alongside Article 77 compensation, the employee retains their full entitlements: end-of-service award, unpaid wages, unused leave compensation, and an experience certificate. Some of these are paid in full upon unfair dismissal, which is why calculating the full "entitlements package" needs an expert before signing any release.
Calculating the End-of-Service Award Under Articles 84 and 85 for 2026
The end-of-service award is the best-known component of end-of-service benefits, and the law sets out explicit rules for it: it's calculated based on the employee's last wage, and equals half a month's wage for each of the first five years, and a full month's wage for each year thereafter, with a pro-rated entitlement for partial years (Article 84).
A key distinction arises when the employment relationship ends through the employee's resignation (Article 85), where entitlement scales according to length of service, as follows:
| Length of Service at Resignation | Entitlement Percentage |
|---|---|
| Less than 2 consecutive years | No entitlement |
| 2 years up to less than 5 years | One-third of the award |
| 5 years up to less than 10 years | Two-thirds of the award |
| 10 years or more | The full award |
When the relationship ends by the employer's decision (statutory termination outside the Article 80 cases, or non-renewal without a lawful reason), the full award is due without the graduated scale that applies to resignation. This is why how the reason for termination is recorded with the General Organization for Social Insurance and in official documents genuinely changes the value of what's owed.
How to File an Unfair Dismissal Case in Saudi Arabia: Practical Steps
Before taking any action, keep one critical fact in mind: a labor claim lapses after 12 months from the date the employment relationship ends or the right arises, as determined by law, and employees aren't required to pay significant labor case fees — the intent behind this is to encourage workers to claim their rights. Engaging a lawyer isn't mandatory, but it improves your chances of a favorable outcome in complex cases.
- File an amicable settlement request with the competent labor office (under the Ministry of Human Resources and Social Development) covering the workplace location, which invites both parties within a period not exceeding 21 days. If settlement fails, your rights are preserved through referral to the labor court.
- Gather and document your evidence: the employment contract, payroll records and salary certificate, the termination or resignation letter, email and text message correspondence, internal work instructions, and the experience certificate.
- File the statement of claim before the competent labor court (workplace location or the defendant's place of residence), specifying your claims precisely: unfair dismissal compensation, end-of-service award, unpaid wages, leave compensation.
- Attend hearings and plead your case before the court, submitting evidence and questioning witnesses where needed, and pursuing the correct legal characterization of the reason for termination.
- Appeal and enforcement: appealing the judgment before the labor appellate court if necessary, then enforcing the final judgment through the enforcement court, with expedited enforcement available for certain judgments such as wages and fixed entitlements.
The full litigation mechanism — from the statement of claim through to enforcement, and the effect of amicable settlement and mediation — is documented in detail in our comprehensive guide to litigation procedures before the labor courts, your reference for procedural deadlines and types of judgments. To track the effect of recent amendments on both parties' rights in the employment relationship and contracts, see our article on Labor Law amendments and employee and employer rights.
If your case is already filed with hearings scheduled, the fastest way to protect your interests is engaging a lawyer to attend and plead on your behalf; Nova Legal offers a labor court hearing attendance service covering defense and representation in matters involving employee and company rights, which you can request directly on WhatsApp.
Why a Labor Disputes Lawyer in Riyadh? Steps Taken Before Court Save You Time
A labor dispute that starts with an error in drafting the statement of claim, or overlooking the reason for termination in the paperwork, can turn from a guaranteed win into a procedural loss. That's why Nova Legal for Law and Legal Consultancy in Riyadh handles the full file, starting with:
- An initial legal consultation: a realistic assessment of your case's prospects and the value of your entitlements before taking any action.
- Representing you in amicable settlement before the labor office, negotiating a settlement that protects your entitlements without prolonging litigation.
- Drafting the statement of claim with precise, provable claims (compensation, award, wages, leave).
- Attending hearings and pleading before the labor courts in Riyadh and the appellate courts.
- Following through on enforcement via the enforcement court until your entitlements reach your account.
- Day to day, we also draft and review employment contracts and internal bylaws for employers to prevent disputes from arising in the first place, through our labor and personnel law compliance service.
Getting started is simple: send your documents via WhatsApp at +966 54 767 5050 or through our "Contact Us" page, get an initial assessment within hours, and have your hearings followed with a dedicated representative through our labor court hearing service.
Frequently Asked Questions
What is unfair dismissal, and how do I prove it in Saudi Arabia?
Unfair dismissal is an employer terminating an employee's contract for an unlawful reason, on a pretextual ground, or outside the statutory termination procedures. It's proven by gathering evidence: the termination letter, payroll records, work correspondence, and the absence of a justified reason or failure to follow required investigation and warning procedures. The labor court assesses compensation based on the circumstances of each case.
How is the end-of-service award calculated in Saudi Arabia?
It's calculated based on the last wage: half a month's wage for each of the first five years, and a full month's wage for each year thereafter, with pro-rated entitlement for partial years. If the relationship ends through the employee's resignation, they're entitled to one-third (after 2 years and up to 5 years), two-thirds (5 years up to 10 years), or the full award (after 10 years), while it's paid in full when termination isn't based on Article 80 and comes from the employer.
What's the statutory deadline for filing a labor court case?
A claim arising from an employment relationship must be filed within 12 months of the date the relationship ended or the right arose, and for unfair dismissal claims specifically, within 12 months of the date of dismissal. If this period passes without a claim being filed, the right lapses — which is why delaying any action isn't advisable.
Can I engage a lawyer for unfair dismissal cases without high fees?
Yes — the law doesn't require filing through a lawyer, and court fees for labor claims are reduced to encourage workers to come forward. That said, professional representation saves time and improves your odds of a favorable outcome. Nova Legal offers transparently priced representation for labor court hearing attendance, bookable via WhatsApp, with a free initial review of your documents.
What's the difference between the end-of-service award and unfair dismissal compensation?
The end-of-service award is a vested right earned over your total years of service under Articles 84 and 85, regardless of the reason for termination, while unfair dismissal compensation under Article 77 specifically redresses the harm caused by unlawful termination. In an unfair dismissal, the employee is entitled to both the award and the compensation, alongside their other entitlements.
Conclusion: Your Rights Don't Lapse Through Giving Up — They Lapse Through Missing the Deadline
Unfair dismissal and end-of-service benefits aren't a legal minefield, but waiting is their biggest enemy. The 12-month limitation period, the 21-day amicable settlement window, and the notice requirements for indefinite-term contracts — these are all deadlines that favor whoever acts, and show no mercy to whoever waits.
Nova Legal in Riyadh gets you an initial assessment within hours, and stays with your file from the first settlement record through to enforcement of the judgment. Two comprehensive guides are also at your disposal: Litigation Procedures Before the Labor Courts and Labor Law Amendments and Both Parties' Rights. Send your documents now on WhatsApp at +966 54 767 5050 and start where guesswork ends.
Official Sources and References
- Saudi Labor Law — Bureau of Experts at the Council of Ministers (Articles 74-88)
- Rights Upon Termination of the Employment Contract — Ministry of Human Resources and Social Development (Articles 84 and 85)
- End-of-Service Award Regulations — HRSD
- Labor Judiciary and Procedural Regulations — Saudi Ministry of Justice
