Barber Ordered to Pay SR40,866 for Contract Breach

A labor court has ordered an Arab barber to pay SAR 40,866 in compensation to his employer after he left work and interrupted his employment without following legal termination procedures, breaching a fixed-term contract.

The court did not impose a fixed statutory fine. Instead, the SAR 40,866 was calculated as case-specific compensation based on the 621 days remaining on the worker's fixed-term contract. Under Saudi Labor Law, courts may calculate breach compensation subject to judicial discretion.

How labor disputes are handled

Employment termination disputes are first addressed through the labor dispute channels of the Ministry of Human Resources and Social Development, where conciliation is attempted. If conciliation fails, cases are escalated electronically to the labor courts through the ناجز portal. Claims are filed via the ministry's online labor disputes system and then transferred to the competent court. Employees must generally file within 12 months of the termination or violation.

Employees are exempt from labor court fees. Employers pay fees if they initiate a case and lose, or if they lose as defendants — with court fees set at 5% of the claim value, capped at SAR 1,000,000.

Once a final judgment is issued it is binding. If the ordered compensation is not paid, enforcement measures are applied through ناجز enforcement services, which can include asset seizure and travel bans.

The case is a reminder to workers and employers alike that fixed-term contracts carry real obligations. Leaving a job before the term ends without following proper legal steps can expose an employee to significant compensation claims. End-of-service benefits remain a separate entitlement calculated under the Labor Law.

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