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April 21, 2024 - BY Sultan Alqahtani

Settling Accounts in Employment Relations: Article 88 of the Saudi Labor Law

Article 88 of the Saudi Labor Law encompasses rights and duties related to the termination of employment contracts between employers and employees. This article highlights the importance of providing justice and protection for both parties at the end of the employment relationship.

When an employment contract ends, whether due to the expiration of its term or because both parties decide to terminate it, this article regulates the process of settling accounts between the two parties. If it is the company that ends the contract, it is obliged to pay the employee's wages and settle their rights within a maximum of one week from the date of the contractual relationship's end. This reflects the Saudi system's commitment to ensuring workers' rights and providing them with security after the end of employment.

In cases where the employee terminates the contract, the system requires the employer to settle the employee’s full rights within a period not exceeding two weeks. This maintains workers' stability and ensures they receive their rights quickly and effectively.

The role of the employer is not limited to paying wages and settling rights but also includes deducting any debt owed to the company due to the employment from the amounts due to the employee. This reflects the employer’s responsibility towards the company and the necessity of ensuring its financial stability.

In summary, Article 88 of the Saudi Labor Law is an important legal framework that defines the rights of workers and the duties of employers at the end of the employment relationship. It emphasizes the importance of providing justice and protection for both parties, contributing to enhancing trust and stability in the Saudi labor market.