Can an employer prevent an employee from working for competitors?

Yes, this is permissible provided there is a written "Non-Competition Clause" in the employment contract. The restriction must be specific in terms of time (not exceeding two years), place, and type of work, to protect the entity's secrets. If the clause is overly broad or vague, the court may invalidate it.

How much is the compensation for arbitrary dismissal in Saudi Arabia?

According to Article 77 of the Labor Law, if the contract does not specify compensation, the aggrieved party is entitled to a compensation of 15 days' wages for each year of service (for indefinite contracts), or the wages for the remaining period of the contract (for fixed-term contracts), provided that the compensation is not less than two months' wages in all cases.

When does the employee's right to file a labor lawsuit expire?

A labor lawsuit is barred by the statute of limitations if the plaintiff does not file it within 12 months (one year) from the date the employment relationship ends. Therefore, we always advise initiating the lawsuit immediately upon the dispute arising to ensure its formal acceptance.

Saudi Labor Court 2026: Comprehensive Guide to Filing Lawsuits & End of Service Benefits

The relationship between employer and employee is the cornerstone of any successful organization. However, when things reach a deadlock, the Labor Court becomes the final arbiter. With recent amendments to the Saudi Labor Law, it is crucial for every party (company or employee) to know their rights and obligations to avoid financial losses.

Whether you are an employer looking to protect your business by drafting professional employment contracts, or an employee seeking end-of-service benefits, this guide clarifies everything.

First: Jurisdiction of the Labor Court

The Labor Court specifically handles:

Disputes related to employment contracts, wages, and financial rights.
Cases of arbitrary dismissal and unlawful contract termination.
Workplace injuries and compensation.
Disputes regarding disciplinary penalties imposed on employees.
Lawsuits against GOSI regarding registration and subscription.

Second: "Amicable Settlement" is Mandatory

Pay attention to this crucial point: You cannot file a lawsuit directly to the Labor Court. The law requires you to first go through the "Amicable Settlement" phase via the Ministry of Human Resources platform. The period for reconciliation is 21 days; if attempts fail, the case is electronically transferred to the court.

Third: The Importance of Drafting Solid Employment Contracts

Most disputes we see in courts are caused by "weak contracts" downloaded from the internet! To protect your entity, the contract must include clear clauses on:

Probation Period: Clearly defined (not exceeding 90 days unless agreed in writing).
Confidentiality & Non-Compete: To protect your business secrets.
Termination Mechanism: Notice periods and compensation.

You can rely on our team in the Contracts & Consulting department to review or draft your employees' contracts in compliance with the latest regulations.

Fourth: How to File a Labor Lawsuit via "Najiz"?

Procedures are now fully digital:

Log in to "Najiz" portal.
Select "Judiciary" > "Statement of Claim".
Classification: "Labor".
Attach the "Non-Reconciliation Report" (Mandatory).
Fill in the defendant's details and your claims precisely.

⚠️ Legal Advice: Drafting "Lawsuit Claims" is the most critical stage. Any claim not written clearly (e.g., compensation for unused leave, end-of-service benefits, attorney fees) will not be awarded by the judge, even if you are entitled to it. This is where an expert in Litigation & Arbitration comes in.

Facing a dispute with an employee or employer?

Do not gamble with your rights. Contact Alshangiti Law Firm to represent you before the Labor Courts.

⚖️ Request a Labor Consultation Now