🇸🇦 Saudi Labor Law • Articles 75, 76 & 77 Compliance

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

Months
Days
Article 77 entitles the worker to the full wage of the remaining contract duration.
SAR
Actual wage includes basic salary plus guaranteed housing and transport allowances.
Standard notice under Article 75: 60 days for monthly contracts, 30 days for others. If 0, notice was fully served.

Settlement & Indemnity Summary

Total Payable Termination Settlement (إجمالي التعويض ومستحقات الإنهاء)
SAR 0.00
Article 77 Floor Applied (≥ 2 Months)
Article 77 Compensation SAR 0.00
Article 76 Notice Indemnity SAR 0.00
2-Month Statutory Minimum Floor SAR 0.00
Article 84 EOSB Award SAR 0.00
Daily Wage Calculation Divisor SAR 0.00 / day (Wage ÷ 30)

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
Audited & Maintained By
Principal Hardware & Web Systems Engineer

Specializing in GCC statutory computation engines, cross-border labor compliance algorithms, and high-frequency client-side web architectures. All formulas audited against the official Saudi Ministry of Human Resources and Social Development (MHRSD) Labor Law and Qiwa platform standards.