The Labor Court in Saudi Arabia: Jurisdiction, Amicable Settlement, Filing a Lawsuit, the Limitation Period, Appeal, and Enforcement

Calculate your labor-claim deadlines

A labor claim is not heard twelve months after employment ends; calculate it with the limitation period calculator, and after judgment use the judgment challenge deadline calculator.

What is the Labor Court and where is it located?

Labor courts are specialized courts within the judiciary under the Ministry of Justice. They began operating in 1440H (2018) with seven independent courts in Riyadh, Makkah, Jeddah, Abha, Dammam, Buraidah and Madinah, in addition to labor circuits in the General Courts in other cities and governorates, and labor circuits in the Courts of Appeal.

Before their establishment, labor disputes were heard by the labor dispute settlement bodies affiliated with the Ministry of Labor. Today, the Ministry of Human Resources handles the settlement stage alone, and the court handles judicial adjudication. Litigation in the labor courts is conducted electronically in most stages through Najiz, including video hearings and the exchange of memoranda.

What is the jurisdiction of the Labor Court?

The Labor Court has jurisdiction over disputes arising from the application of the Labor Law and the Social Insurance Law, pursuant to Article 34 of the Law of Sharia Procedure issued by Royal Decree No. (M/1) dated 22/1/1435H. The main matters it hears include:

• Disputes relating to employment contracts, wages and entitlements, and work injuries and compensation for them.
• Disputes arising from dismissal from work, such as claims for compensation under Article 77.
• Disputes relating to disciplinary penalties imposed by the employer, or requests for exemption from them.
• Claims filed to impose the penalties provided for in the Labor Law.
• Objections by workers and employers to decisions of the General Organization for Social Insurance on registration, contributions and compensation after their objection has been rejected.
• Disputes relating to workers subject to the Labor Law, including government workers who are subject to it.

Among the most recent additions to this track, since 3 October 2024 domestic worker disputes go through amicable settlement at the Ministry of Human Resources and are then referred to the labor courts if settlement proves impossible. On the other hand, the Labor Court has no jurisdiction over a dispute in which no employment relationship exists at all, such as an independent contracting agreement or a partnership, nor over the rights of state employees subject to civil service regulations, which go before the administrative courts.

Must a labor complaint be filed for amicable settlement before going to court?

Yes. The Labor Court does not hear a dispute before the amicable settlement stage at the Ministry of Human Resources and Social Development has been completed, as confirmed by the Ministry of Justice in its published answers to labor questions. A labor complaint begins electronically through the Ministry’s e-services portal, through the service known as “Wadi.”

According to the Ministry’s service page, the complaint goes through the following stages:

• Submitting the request electronically to the settlement office in the city where the worker works.
• Legal review of the request and its supporting documents.
• A negotiation period between the two parties, followed by notices of the settlement session dates.
• Settlement sessions in which the specialist attempts to bring the parties’ positions closer.
• The stage concludes with an agreement, or with the claim being referred electronically to the Labor Court if no settlement is reached within twenty-one working days.

The service is free of charge, and if submitted by an agent, the power of attorney must authorize attendance and settlement. If the settlement ends in an agreement, the settlement record is an enforceable instrument that can be submitted directly to the Enforcement Court if it is not complied with. For details of this stage, read the guide to amicable settlement of labor disputes.

What is the limitation period for a labor claim?

A labor claim is not heard after twelve months have passed from the date the employment relationship ended, pursuant to Article 222 of the Labor Law issued by Royal Decree No. (M/51) dated 23/8/1426H. This period covers claims for any right provided for in the law or arising from the employment contract, such as overdue wages, end-of-service awards, leave pay and compensation for termination.

This period is among the things workers most often overlook, especially when negotiations with the employer drag on after the contract ends. It is therefore advisable to submit the amicable settlement request early, not in the final weeks of the period. To calculate the date on which the period expires in your case, use the statutory deadlines calculator.

The rule differs if the relationship is ongoing; for a claim for overdue wages while the contract is in force, the period does not begin from the end of the relationship because it has not yet ended, but delay in claiming weakens the position in practice and makes proof more difficult.

How is a claim filed before the Labor Court after referral?

The claim is referred to the Labor Court electronically by the amicable settlement department when settlement proves impossible, so the worker usually does not need to register it again. The worker receives a notice with the case number and hearing date, and then follows it through Najiz. From this point, a judicial stage begins with requirements different from the settlement sessions:

• Specifying the claims precisely: each amount separately, with its method of calculation and its basis in the contract or the law.
• Attaching the employment contract, payroll records or bank statement, and the social insurance certificate.
• Attaching proof of how the relationship ended: the dismissal letter, the resignation and its acceptance, or correspondence.
• Preparing any document proving the rights claimed, such as overtime, commissions or allowances.
• Following hearing dates and memoranda on Najiz and not missing them.

It is advisable to calculate each amount before the first hearing, such as the award, compensation and overdue wages, stating the wage on which the calculation is based. For a detailed list of what to prepare before a dispute, read how to prepare for a labor dispute.

What happens at Labor Court hearings?

The labor circuit hears the claim in a video or in-person hearing or through the exchange of memoranda, usually beginning by hearing the plaintiff’s claims and then the defendant’s response. Either party may submit an incidental claim while the case is being heard, such as an employer claiming a counter-amount from the worker.

Evidence in labor claims is mostly based on documents: the contract, payroll records, the social insurance record, correspondence and termination letters. Witnesses are sometimes relied on, especially regarding overtime or the manner of termination. The circuit may ask the employer to produce its records, such as payroll, attendance and leave records, since these are usually in its possession.

The court may propose settlement at any stage, and if the dispute ends in settlement, it records it in a record that has the force of an enforceable instrument.

How are Labor Court judgments appealed?

A Labor Court judgment is challenged by an appeal request within thirty days of the date of receiving a copy of the judgment, and the period is ten days for judgments issued in urgent matters, pursuant to the Law of Sharia Procedure. The objection is submitted electronically through Najiz and is heard by the labor circuit of the Court of Appeal.

An exception applies to what the Supreme Judicial Council has classified as minor labor claims, including claims whose value does not exceed twenty thousand riyals, whose judgments are final and not subject to appeal. It is therefore advisable to consider the value of the claims and how they are combined before filing, not after the judgment is issued.

The objection should be written specifically against the grounds of the judgment: what the court got wrong in the facts or in applying the law, and what evidence was overlooked. Simply repeating the statement of claim does not serve the objection.

How are Labor Court judgments enforced?

Final labor judgments are enforced before the enforcement courts through an enforcement request submitted electronically via Najiz. If the employer against whom judgment was issued does not pay within the specified period after being notified, the statutory measures provided for in the Enforcement Law are taken against it, such as attachment of assets and a ban on dealing with it.

The same applies to the amicable settlement record signed by both parties; it is an enforceable instrument in itself. For an explanation of the stages of an enforcement request, its procedures and related disputes, read the Enforcement Court guide.

When do you need a labor lawyer?

The law does not require appointing a lawyer before the Labor Court, and the worker or employer may represent themselves. However, engaging a labor lawyer is useful in certain situations:

• When the twelve-month period is nearing its end and quick, precise action is needed.
• When there is a dispute over the reason for termination, or over whether it should be characterized as resignation or dismissal.
• When there are multiple claims with overlapping calculations, such as the award, compensation and commissions.
• For an employer facing multiple claims or needing a review of its regulations and termination procedures before a dispute.
• When there is a non-compete clause or a counterclaim by the employer.

A consultation can be requested under the labor cases service to review documents and assess the claims before amicable settlement.

Frequently asked questions

Can a claim be filed with the Labor Court directly without amicable settlement?

No. The Ministry of Justice explains that the Labor Court does not hear a dispute before the amicable settlement stage at the Ministry of Human Resources has been completed, after which the claim is referred to it electronically if no settlement is reached within twenty-one working days.

What is the deadline for filing a labor complaint after leaving work?

Twelve months from the date the employment relationship ended, pursuant to Article 222 of the Labor Law; after that, a claim concerning rights under the law or the employment contract is not heard. The more prudent course is to submit the amicable settlement request early.

Can a Labor Court judgment be appealed?

Yes, within thirty days of receiving a copy of the judgment, and ten days in urgent matters. An exception applies to what the Supreme Judicial Council has classified as minor labor claims, including those whose value does not exceed twenty thousand riyals, whose judgment is final.

Does the Labor Court hear domestic worker cases?

Yes, since 3 October 2024 domestic worker disputes go through settlement at the Ministry of Human Resources and are then referred to the labor courts for adjudication if settlement proves impossible.

Who is competent to enforce Labor Court judgments?

The enforcement courts, through an enforcement request submitted via Najiz. The amicable settlement record signed by both parties is an enforceable instrument that can be submitted directly to the Enforcement Court if it is not complied with.

Do I need a labor lawyer to file a claim?

The law does not require it, and the worker may represent himself. A labor lawyer may be useful when there is a dispute over the reason for termination, multiple claims, or the limitation period is nearing its end.

Can an employer dismiss without an end-of-service award?