Labor Court Orders Barber to Pay SAR 40,866 in Jeddah

A labor court in Jeddah has ordered an Arab barber to pay SAR 40,866 in compensation to his employer after he was found to have breached a fixed-term, three-year employment contract by leaving his job without following the legal termination procedures required under Saudi Labor Law.

The compensation was not a fixed statutory fine. Instead, the court calculated the amount based on the 621 days remaining on the fixed-term contract, which had been officially documented with the Ministry of Human Resources and Social Development as a fixed-term agreement. In fixed-term contracts, either the employer or the employee may be ordered to pay compensation equal to wages for the remaining contract period when one side breaches without a legitimate reason, subject to the court's assessment of fault, harm, and causation.

the worker failed to attend several court hearings despite being formally notified. The judgment became final and enforceable after he did not appear.

Why it matters

The ruling is a reminder for both workers and employers in the Kingdom that fixed-term contracts carry real financial obligations, and that leaving a job without following proper notice and termination steps can result in significant compensation claims. The SAR 40,866 figure is case-specific judicial compensation, not a standard or published penalty; there is no fixed SAR amount in Saudi Labor Law for breaching an employment contract.

Labor disputes over employment contracts and compensation are filed in the Labor Courts under the Ministry of Justice, with the ناجز platform serving as the official e-channel for submitting and following up on cases. Under the law, such claims must be filed within one year from the date the contractual relationship ends. Typical remedies include continuation of the contract where appropriate, or monetary compensation covering direct damages, remaining contract wages, notice-period pay, leave balance, and end-of-service benefits.

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