Labor Cases for Businesses

What do we offer in this area?

• Reviewing the employment contract, entitlements and decisions related to the employment relationship
• Exploring opportunities for amicable settlement and preparing the necessary memoranda
• Following up on the labor lawsuit within the scope of the engagement

The scope of work and required documents are determined after reviewing the matter and agreeing on the engagement.

Labor Cases from the Employer's Side

A labor complaint usually reaches the business as a notice of a settlement session on the Wadi platform, together with the employee's claims such as unpaid wages, the end-of-service award, and compensation for termination. The defense begins by reading the claims item by item and comparing them against the business's records, to determine which claims are acknowledged and which are disputed, rather than a general response that weakens the business's position before the Labor Court.

• Wage, allowance, and overtime claims
• Compensation for termination under Article 77 of the Labor Law
• End-of-service award and leave allowance
• The business's claims against the employee, such as recovering advances or compensation for damage

The Wadi Platform and Amicable Settlement before Litigation

Labor disputes go through an amicable settlement stage via the Wadi platform of the Ministry of Human Resources and Social Development, and both the employee and the employer have the right to file the request. Sessions are held within 21 working days from the date of the first session; if conciliation fails, a report is issued to that effect and the dispute moves to the Labor Court. This stage is an opportunity to end the dispute through a considered settlement, provided the settlement agreement clearly states the rights it covers. For details, read Amicable Settlement of Labor Disputes.

Defending the company before the Labor Court

Independent labor courts exist in a number of major cities, and labor circuits exist within general courts in other cities and governorates. The office prepares the response memorandum organized by claim, based on the documented contract, the work organization bylaw, wage records, warnings, and investigation reports. Cases are heard electronically via Najiz in written and video sessions, which reduces the need for the company's representative to travel to the courthouse. Documents prepared include:

• The registered employment contract and its annexes
• Payroll records and proof of wage transfers
• Attendance, leave, and overtime records
• Warnings, investigation minutes, and the termination decision
• Prior discharges or settlements, if any

The Limitation Period for Hearing Claims and Reducing Labor Risk

The Labor Law sets twelve months from the date the employment relationship ends as the period for hearing labor claims, and this period affects some of the business’s defenses. But reducing risk begins before the dispute: documenting the contract, paying wages on time through a verifiable method, conducting an investigation before imposing a penalty, and reviewing the termination decision in advance under HR Legal Advisory. For an overview of labor litigation services, see the Labor & Employment Disputes page.

Frequently asked questions

Can an Employer File a Labor Claim against an Employee?

Yes, the business is a party to the employment relationship and is entitled to claim its rights arising from the contract, such as recovering an advance, compensation for damage caused by the employee, or a claim equivalent to the employee's failure to observe the notice period. This ordinarily begins with an amicable settlement request through the Wadi platform, then the Labor Court if settlement fails.

Does the company sign a settlement discharge with the employee at the conciliation session?

The dispute can be ended by an agreement documented in the settlement report. It is advisable that the agreement specify the amounts paid, the rights it covers, and the payment method and date, and that it be reviewed before signing; general wording may leave claims open, while precise wording reduces the likelihood of the dispute returning to the Labor Court.

How Should a Business Prepare for the First Hearing in the Labor Court?

The statement of claim and the report of failed settlement are gathered, then each claim is matched against the business’s documents and accounts, and the amounts acknowledged, the amounts disputed, and the grounds for the dispute are identified. A written response memorandum is prepared on this basis, and the business issues a valid power of attorney via Najiz to its representative, with a designated employee to provide the agent with the necessary information and documents.