Saudi Labor Court Orders Barber to Pay SAR 40,866 for Contract Breach

A Saudi labor court has ordered an Arab barber to pay SAR 40,866 in compensation to his employer after ruling that he breached his fixed-term employment contract by leaving his job without following the legal procedures required to terminate the agreement.

The ruling, reported by Okaz newspaper, calculated the compensation based on the remaining 621 days of the worker’s three-year employment contract.

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Left Job Before Contract Ended

According to court documents, the barber arrived in Saudi Arabia to work in Jeddah under a three-year employment contract that was officially documented with the Ministry of Human Resources and Social Development. He began work on September 19, 2024.

In early 2026, he received a job offer for the same profession in Madinah and left his employer without notifying the company or completing the required legal procedures.

Transfer Request Rejected

The worker later attempted to transfer his employment services to the new employer. However, the existing employer rejected the request and sought reimbursement of the statutory fees it had incurred.

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After the transfer process failed, the worker traveled to his home country on leave.

Court Ruled in Employer’s Favor

The employer subsequently filed a lawsuit before the labor court, seeking compensation for breach of contract.

Court records show that the worker failed to attend several hearings despite being formally notified. The court ruled in favor of the employer, and the judgment has since become final and enforceable.

Lawyer Highlights Labor Law Provisions

Commenting on the case, lawyer Rayan Abdulrahman Al-Juhani said both employees and employers should seek legal advice before taking actions that could have contractual consequences.

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He explained that Saudi Labor Law provides specific circumstances under which employees may leave their jobs under Article 81 and employers may terminate employment under Article 80. Meanwhile, Article 77 governs compensation when either party unlawfully terminates an employment contract without a legitimate reason.

Al-Juhani said the case highlights the importance of understanding labor regulations to protect the rights and obligations of both workers and employers.

Contract Documentation Mandatory

The case also highlights the importance of properly documented employment contracts in Saudi Arabia.

Since 2022, the Ministry of Human Resources and Social Development has required employers to document employment contracts through the Qiwa platform. The system records contract registration, updates to occupations, wages and qualifications, and the termination of employment relationships, helping improve transparency and protect the rights of both employers and workers.

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