Delayed wages justify leaving work without notice: Final court ruling

In a new victory for workers' rights and a reinforcement of the principles of effective justice in the Saudi labor market, the Labor Court of Appeal upheld a lower court ruling affirming a worker's right to leave their job immediately without the need for the usual notice period, if the employer is found to be late in paying their financial dues. The court considered wages to be the cornerstone and backbone of the contractual relationship, and any breach of this right to constitute a violation of the essence of the contract.

Details of the ruling and legal basis

The court ruling was based directly and explicitly on Article 81, Paragraph 1 of the Saudi Labor Law , which serves as a safeguard for employees. This article grants workers the full right to terminate their contracts and leave their jobs while retaining all their legal rights (including end-of-service benefits) if the employer breaches their fundamental obligations. The Court of Appeal rejected all the employer's attempts to overturn the ruling, accepting the appeal in form but rejecting it on its merits, thus affirming the soundness of the initial ruling and its complete conformity with the applicable regulations in the Kingdom.

Reasoning behind the decision: Wages are a fundamental obligation

During the proceedings, the court considered the establishment's admission of delayed payment of a portion of the wages as conclusive evidence of negligence, thus legally justifying the employee's decision to unilaterally terminate the employment contract without any penalties or compensation due to the employer. The court established a crucial principle: that the timely payment of wages is a fundamental obligation that cannot be disregarded, and that any unjustified delay entails immediate legal consequences for the affected employee, thereby concluding the case with a clear victory for workers' rights.

General context and importance of governance for the labor market

This ruling is consistent with the general direction of the Kingdom of Saudi Arabia in regulating the labor market and protecting the rights of all parties, as the Ministry of Human Resources and Social Development pays great attention to the issue of wages through the “Wage Protection System”, which aims to monitor disbursement operations and ensure the compliance of establishments.

This ruling is of paramount importance on several levels:

• Enhancing job security: The ruling sends a reassuring message to employees that the judiciary stands as a bulwark against any infringement on their financial rights.
• Deterring defaulting establishments: The ruling serves as a warning bell for employers that delaying salaries is not merely an administrative violation, but a fundamental breach of contract that entitles the employee to leave immediately.
• Market stability: Clarity in the application of Article 81 contributes to reducing long-term labor disputes, as the rules become clear to both parties, thus enhancing the attractiveness of the work environment in the Kingdom.

In conclusion, this final judicial ruling confirms that the employment relationship is based on mutual obligations, and that the failure to pay wages releases the worker from the constraints of the contract and the notice conditions, thus restoring balance to the relationship between the worker and the employer.