Article 77 Compensation After Unfair Termination
Foreign workers often worry about what happens if a contract ends unfairly. Article 77 is one of the most reassuring parts of the Saudi Labor Law because it gives a compensation framework when termination happens for an invalid reason. In the appendix amendments in the uploaded file, Article 77 says that unless the contract includes specific compensation for invalid termination, the affected party is entitled to compensation. For indefinite term contracts, that compensation is fifteen days’ wage for each year of employment. For fixed term contracts, it is the wage for the remainder of the contract term. In both cases, the compensation may not be less than two months’ wage. This matters because it turns a vague fear into something measurable and understandable.
For foreigners, that kind of clarity is more than a legal detail. It can influence how safe you feel accepting a position, relocating to a new city, or supporting family members through your income. An expat dismissed unfairly may already be dealing with rent, transport, school fees, or the cost of finding another role. Article 77 helps by creating a known starting point for compensation after unfair termination in Saudi Arabia. It also encourages employers to think carefully before ending a contract without a valid legal reason. From an SEO point of view, this topic matches strong user intent around Saudi labor law article 77, unfair dismissal Saudi Arabia, termination compensation Saudi Arabia, and employee rights Saudi Arabia. For readers, the takeaway is simple: your service has value, and the law recognizes that an invalid termination can cause real financial harm. Knowing Article 77 helps foreigners ask better questions, keep better records, and respond more confidently if a work relationship ends in a way that does not seem fair. It also supports better negotiation before problems start. If a worker understands Article 77 early, he can pay attention to contract wording, notice provisions, and any clause about compensation. That makes it easier to spot weak contract terms and easier to seek advice if termination happens unexpectedly.
If you ever need legal advice in Saudi Arabia, do not hesitate to contact us. We would be happy to support you and help guide you in the right direction!
