Wednesday, 3 December 2014

Compensation in case of Work Injury as per Saudi Labor Law

The employer has the full responsibility to bear all the expenses related to treatment of work injury as per Saudi Labor Law. The employer is responsible by Article 133 of the Saudi Labor to treat the employee until he gets fit and bear all necessary expenses directly or indirectly related to the treatment of work injury including expenses related to hospitalization, medical examination, medical tests, radiology, prosthetic devices and transportation expenses to medical centers.

What is work injury?
However, here it is important to clarify what does work injury really mean; an injury is work injury if it meets the definition of work injury as per GOSI. Occupational diseases shall also be considered work injury as per Article 134 of the Saudi Labor Law. Any complication arising from the work injury shall also be treated as work injury. The employer is fully responsible to bear all the costs related to this additional medical complication as per Article 135 of the Saudi Labor Law.

Wages / Salary during the treatment of Work Injury
  1. The employer is bound to pay the salary to the employees affected due to work injury as per Article 137 of the Saudi Labor Law. 
  2. Employee affected by the work injury will be compensated with his full salary for the first 60 days of treatment. Changes in Saudi Labor Law effective from 01/01/1437 are taken into account.
    • It is important to mention here that even if employee gets sick due to any other reason apart from work injury; he is still entitled to get paid medical leave for 3 months. I have explained it in detail in this link. Recommended: Entitled Leaves for employees as per Saudi Labor Law
  3. Employee affected by the work injury will be compensated with 75% of his salary for the next 10 months of treatment.
  • After one year (60 days + 10 months), if it is determined that the chances of recovery of the patient are very few, the disease or work injury will be treated as permanent disability and contract will be terminated at that date.
  • Employer does not have any right to recover the payment already made to the employees affected by the work injury.

  • Compensation in case of Death, partial or permanent disability
    1. In case of death, partial or permanent disability, the employee or the legal heirs of the employee are compensated with two benefits. In this article, we have explained about the payments which need to be made to the injured person or his legal heirs by the employer. There is another payment which needs to be made by the General Organization for Social Insurance (GOSI) to the employee or his legal heir as the case may be, we have covered it in this link “Benefits from GOSI to employees
    2. If work injury results in death or total permanent disability, the employee or the legal heirs of the employees as the case may be; would be entitled to get compensation from the employer equivalent to his wages or salaries of 36 months. However, this amount should not be less than SR 54,000 as per Article 138 of the Saudi Labor Law.
  • If work injury results in partial permanent disability, the employee will be entitled to get the compensation on proportional basis.
  • He will also be entitled to these benefits as per different sections of the Saudi Labor Law;

  • No Compensation for the Employees of Work Injury if

    Employee is not liable to pay any amount of compensation as a result of work injury in following cases as per Article 139 of the Saudi Labor Law.
    1. If an employee injures himself deliberately
    2. If the work injury is caused by the intentional misconduct on the part of the employee
    3. If employee refuses to take the treatment of the physician assigned by the employer or refuses to act upon his instructions.


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