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Wednesday 15 October 2008 (14 Shawwal 1429)
 

Law and You by Mohammed Jaber Nader

 
 

S. L. I worked as a design engineer in a company from Sept. 2, 2002 to Feb. 4, 2008. The company gave me bonus annually between 2003 to 2007. Now, when I resigned they did not give me bonus for the year 2007-2008, though I worked for the whole year with the company. The problem is that bonus is not mentioned in my employment contract but I was being paid on mutual verbal understanding. Please advise me as to my possible legal recourse for obtaining the bonus.

That you received bonus regularly for five years sets a legally-binding precedent as an established and gained right. Saudi Labor Court has upheld this. If an annual bonus has been disbursed for three consecutive years, it becomes an established right even if it is not stated in the contract. Additionally, these bonuses are to be included in your end-of-service calculation. Explain to your employer that according to the law, you are to be paid your 2007-2008 bonus, and that these bonuses are to be included in your end-of-service benefit calculation. If your employer doesn’t listen to reason, complain to the Labor Office.


 

S. L. M. Are employees entitled to any of their allowances, or parts of them, during their vacation ?

They are not entitled to them while on vacation if they are provided these benefits in kind, such as food in the company restaurant, housing paid directly to the landlord by the company or transportation by company car. Airfare to any destination is not given automatically during vacation. It has to be expressly agreed upon in the contract.


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