Saudi Unlawful Termination & Article 77 Calculator
حاسبة تعويض إنهاء العقد لسبب غير مشروع وبدل الإشعار (المواد 75، 76، 77)
Calculate statutory financial damages for unlawful termination without valid legal cause under Article 77 of the Saudi Labor Law. Whether governed by an indefinite contract (15 days per year of service) or a fixed-term contract (remuneration for the remaining contract term), this calculator automatically applies the mandatory 2-month statutory compensation floor and integrates Article 76 notice pay indemnity.
When an employment contract is terminated without legitimate cause under Article 80, the aggrieved party is entitled to statutory indemnification. Furthermore, unlawfully terminated employees retain full entitlement to their accrued End of Service Benefits (EOSB) under Article 84. Use this tool to compute your exact legal settlement under Saudi Ministry of Human Resources and Social Development (MHRSD) guidelines.
Employment & Termination Parameters
Settlement & Indemnity Summary
Article 77 Compensation Matrix: Fixed-Term vs Indefinite Contracts
Comparative breakdown illustrating how Article 77 compensation varies across contract structures and tenures, evaluated on a standard monthly wage of SAR 10,000 / month (Statutory Minimum Floor = SAR 20,000).
| Scenario / Parameter | Raw Statutory Formula | Calculated Raw Amount | 2-Month Floor (Art. 77) | Payable Compensation | Notes / Legal Effect |
|---|---|---|---|---|---|
| Indefinite: 1 Year Service | 15 days wage (0.5 mo) | SAR 5,000 | SAR 20,000 | SAR 20,000 | 2-Month Floor Triggered |
| Indefinite: 3 Years Service | 45 days wage (1.5 mo) | SAR 15,000 | SAR 20,000 | SAR 20,000 | 2-Month Floor Triggered |
| Indefinite: 4 Years Service | 60 days wage (2.0 mo) | SAR 20,000 | SAR 20,000 | SAR 20,000 | Equal to Statutory Floor |
| Indefinite: 8 Years Service | 120 days wage (4.0 mo) | SAR 40,000 | SAR 20,000 | SAR 40,000 | Calculated > Floor |
| Fixed-Term: 1 Month Left | Remaining 1 Month | SAR 10,000 | SAR 20,000 | SAR 20,000 | 2-Month Floor Triggered |
| Fixed-Term: 5 Months Left | Remaining 5 Months | SAR 50,000 | SAR 20,000 | SAR 50,000 | Full remaining period paid |
| Fixed-Term: 12 Months Left | Remaining 12 Months | SAR 120,000 | SAR 20,000 | SAR 120,000 | Full contract balance enforced |
Frequently Asked Questions — Saudi Labor Law Article 77 (أسئلة شائعة)
What compensation is mandated by Article 77 of the Saudi Labor Law?
Unless the employment contract specifies an agreed compensation figure, Article 77 provides: for indefinite contracts, 15 days' wage for every year of completed service; for fixed-term contracts, the full wage for the remaining duration of the contract. In both situations, the statutory compensation cannot be less than two months' full wage.
What is the statutory minimum payout under Article 77?
The statutory floor under Article 77 is two months of full actual wage (basic salary plus housing and regular allowances). Even if an employee on an indefinite contract was unlawfully terminated after only 6 months of service, the employer must pay at least 2 full months' wages.
Does an unlawfully terminated employee still receive End of Service Benefits (EOSB)?
Yes. Article 77 compensation is awarded specifically for wrongful termination damages and is legally distinct from the employee's accrued End of Service Benefits under Article 84. The employer must disburse both Article 77 compensation and the full Article 84 EOSB.
How does notice pay under Articles 75 and 76 interact with Article 77?
Under Article 75, written notice must be at least 60 days for monthly-paid employees under indefinite contracts (30 days for fixed/other contracts). If the employer terminates immediately without requiring the employee to serve the notice period, the employer must pay the full wage for the unserved notice days under Article 76 in addition to Article 77 damages.
Can an employee be liable under Article 77 if they terminate without legal cause?
Yes. Article 77 applies equally to both contracting parties. If an employee resigns or walks away from a fixed-term contract without valid statutory cause under Article 81, the employer can file a claim at the Saudi Labor Courts for Article 77 damages equivalent to the remaining term or 2 months' wage.
📊 Saudi Statutory Comparative Breakdown Matrix (جدول المستحقات النظامية)
| Statutory Article / Obligation | Calculated Value |
|---|---|
| Primary Settlement / Net Amount | 0.00 SAR |