Article 79 Saudi Labor Law: Guide to Employee Rights & Termination

Article 79 Saudi Labor Law outlines the rules for terminating employment contracts under specific circumstances, such as the death or incapacity of an employee. The Ministry of Labor clarifies that these cases are considered force majeure, preventing the continuation of the contract, and require the employer to take the necessary legal steps to settle the rights of the employee or their heirs.

This article also safeguards the rights of both employees and employers, ensuring compliance with legal procedures in cases of termination, whether due to death, incapacity, resignation, or misconduct.

Article 79 Saudi Labor Law

• The Ministry of Labor clarified that the death of an employee is one of the reasons that allow termination of an employment contract under Article 79 Saudi Labor Law.
• The law states that an employment contract does not end with the death of the employer, unless the employer’s personal involvement was a condition when the contract was signed.
• Conversely, the contract always ends with the employee’s death or their inability to perform work, as outlined in Article 79 Saudi Labor Law.
• Incapacity must be certified by a medical certificate issued by the authorized health authorities or by a doctor appointed by the employer, as confirmed in Article 79 Saudi Labor Law.
• These cases are considered force majeure that prevent the continuation of the contract, and the employer cannot require the deceased employee’s heirs to fulfill the contract.
• The contract also terminates if the employee is unable to perform their duties, with the important note that termination due to incapacity does not deprive the employee of their rights under the Social Insurance Law.

Read also: Saudi Labor Law Article 80: Employee Termination Rights

What are The Key Amendments of Article 79 Saudi Labor Law?

1. An employee’s resignation request is considered accepted if 30 days have passed since submission without any response from the employer.
2. The employer has the right to postpone accepting the resignation for up to 60 days, provided this is clearly stated in a written notice.
3. The employment contract ends upon resignation from the date it is accepted by the employer or upon the expiration of the specified acceptance period under the article.
4. The employee is allowed to withdraw their resignation within 7 days of submission.
5. It is not permitted to set a future date in the resignation request.
6. The employee retains the right to receive all legal entitlements upon termination of the contract due to resignation.

Additionally, the relevant authorities have imposed conditions for compensation in cases of termination without cause to protect the employee’s rights in accordance with legal obligations that must be followed.

Check out: A Complete Guide to Article 107 Saudi Labor Law

Procedure for Settling Rights in Case of Death or Incapacity

In the event of an employee’s death or incapacity, the employer must take the necessary steps to settle all entitlements for the employee or their heirs. Article 79 mandates the payment of financial dues accrued during the employee’s service period, including the following key rights:

• Outstanding wages for the completed period of work.
• End-of-service benefits based on the employee’s length of service.
• Social insurance entitlements, if the employee was enrolled.
• Compensation for unused leave.

These entitlements must be paid within the specified timeframe and after the death or incapacity has been officially documented. It is also recommended to consult a lawyer specialized in labor law to provide appropriate legal advice and ensure that the process is carried out fairly and transparently.

Learn about: Saudi Labor Law Resignation Guide 2025 – Etqan Law Firm

Conclusion                                     

Article 79 Saudi Labor Law provides an essential legal framework to protect the rights of both employees and employers, especially in cases of death, incapacity, or resignation. Following the procedures outlined in this article ensures fair and transparent settlement of employee dues and prevents potential legal disputes. For professional legal guidance and to ensure proper application of the law, consulting a reputable law firm such as Etqan Law Firm is always recommended.

The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +966550600204, +966551020060.

Additionally, feel free to visit our branches located at:

• Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
• Riyadh: King Abdulaziz Street, across from the Kingdom Tower
• Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.

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