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Thursday, 2 October 2014

Redundancy Law in Saudi Arabia

Does UK Redundancy Law apply in Saudi Arabia? If my employer is a multinational company?

Question by Visitor
If I am terminated by my UK company (based in Saudi Arabia) due to a transfer of business (to a Saudi Company), because I do not accept the terms and conditions of transfer can you tell me in your opinion:
  • Would this be termed as a valid or invalid reason - Redundancy. Take into account my contract is to be read under English Law, and that under English Law this would not be a reason for dismissal and would be considered to be unfair dismissal.
  • Article 8 of the Saudi Labor Law states that "Any condition that contradicts the provisions of this law (Saudi Labor Law) shall be deemed null and void. The same applies to any release or settlement of the workers’ rights arising from this law during the validity of the work contract, unless the same is more beneficial to the worker. - Would this mean that as my contract states that it is to be read under English Law then the matter of redundancy could be referred back to the UK Employment Court rather than the Saudi Labour Court as this would be more beneficial to the Employee?





  • Answer by Steve
    • You have asked two questions, one is related to English Law and the other one is related to Saudi Labor Law. I was a student of English Law and I will answer your question as per my understanding and knowledge.

  • If they have offered you a reasonable employment upon same terms and conditions, you don’t qualify for redundancy payment. Moreover, I am not sure that the UK redundancy law applies on the contracts executed, performed and terminated in Saudi Arabia.
  • Related Articles
    1. Probation Rules under Saudi Labor Law
    2. Termination without Notice Period under Saudi Labor Law
    3. Resignation without Notice Period under Saudi Labor Law
    4. Notice Period under Saudi Labor Law
    5. Retirement Age in Saudi Arabia
    6. Rights of Expatriates in Saudi Arabia

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