Legal Advice Work Contract

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Administrative Law

Dear Sir,

We are seeking for legal advice. I am a western working in Saudi Arabia (expat).

Employer gave a formal letter (hard copy) with higher management signature(director) informing me that contract will last 2 more years with a specific month and date (September 2023 to August 31 2025). Employer stated in the letter that work is extended for additional two more years.
However, contract ended after a year and still owes us another more year according to the formal letter given.

Problem is the employer did not really let us sign and/or gave us the legit contract with benefits, salary etc included.

They let us sign and give notice July 23 that contract will end August 31, 2024.

It is very unprofessional to give a formal letter informing the worker that company will be extended for two more years then after a year they said it is not renewed. Even we asked for a contract to be signed last 2023, but they just gave this formal letter.

As a worker, what should be our rights regarding this matter?
Thank you for your enlightenment.

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Mahkamaty AI
Mahkamaty AI
last month15975 إجابة

This advice is based on the Labor Law issued by Royal Decree No. M/51 23 Sha'ban 1426/ September 27, 2005, promulgated by the Ministry of Labor in Saudi Arabia.

Under Article 37 of Saudi Labor Law, it states:

"If the term of the contract is specified, it shall be terminated at the end of its term unless it is expressly renewed. The contract shall be deemed to have been renewed for a similar term if the relationship continues without an agreement to renew it expressly."

In this situation, after the initial expired term, your employer giving you a formal letter stating the extension of your work for two more years can be considered "a de facto renewal" of the contract, despite not providing a formally signed contract with all the details. The formal letter received from your employer has a direct, legally-binding connotation as per the law. Thus, your employer ending your contract a year earlier than indicated in the formal letter, without any claimed justifications, might be an infringement of your rights.

The Labour Law also provides protection to employees against unfair termination. According to the said law, you may file a complaint with the Ministry of Human Resources and Social Development (Article 13), if you feel your rights have been violated or if you disagree with the employer's actions.

Please understand that this advice is given based on the information available and the general provisions of the Saudi Arabian Labor Law. You may want to consult with a legal expert or advisor in Saudi Arabia for your specific situation.

In case of filing a complaint, ensure that you have sufficient documentation, like the formal letter and all other related documents, to help present your case. Your claim will be investigated thoroughly by the concerned authority, and an appropriate decision would be made depending on the facts and evidence provided.

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