Article 53 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 53 من اللائحة التنفيذية لنظام الإفلاس · الفصل الخامس: إجراء التصفية: طلب السداد
This article requires the trustee's request to terminate workers' contracts to state its reasons and give a detailed statement, and requires pay of workers who continue after the liquidation opens to be paid as soon as due.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يجب أن يتضمن طلب الأمين إنهاء عقود عمل العاملين لدى المدين -المقدم إلى المحكمة- أسباب طلبه وبياناً تفصيليًّا بهذه العقود.
2 - تدفع أتعاب العاملين المستمرين في أداء مهماتهم بعد افتتاح إجراء التصفية فور استحقاقها, وذلك حتى انتهاء عقودهم أو انتهاء الإجراء.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 53 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law deals with the position of the debtor's workers in the liquidation procedure, from two sides:
First: the request to terminate employment contracts. If the trustee asks the court to terminate the employment contracts of the debtor's workers, his request must include:
- The reasons for the request.
- A detailed statement of these contracts.
Termination here is by a request submitted to the court, and it must be reasoned and detailed.
Second: pay of continuing workers. Workers who continue to perform their tasks after the liquidation procedure opens are paid their pay as soon as it is due, until their contracts end or the procedure ends.
This ruling reassures those who keep working during the liquidation that their dues for that period are paid on time without waiting for the proceeds to be distributed. The article does not address dues from before the opening or their order of priority, and does not set out the rights that follow termination of a contract; these are matters governed by other provisions.
This article follows Article 52 on the discount due to the debtor, and precedes Article 54, which specifies the content of the distribution decision to creditors. A worker who wants to know his rights in this situation can consult a lawyer who specializes in bankruptcy and commercial cases.
Practical example
Fahd is an accountant at a company in Riyadh for which the liquidation procedure was opened, and the trustee asked him to continue working to help inventory the assets. Fahd's pay for his work after the opening is paid as soon as it is due each month, until his contract ends or the liquidation procedure ends.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 53 of the Saudi Implementing Regulations of the Bankruptcy Law
Is the pay of employees who keep working after a company's liquidation paid?
Yes. The pay of workers who continue after liquidation opens is paid as soon as it is due, until their contracts end or the procedure ends.
What must the trustee's request to terminate employment contracts contain?
The reasons for the request and a detailed statement of the contracts to be terminated.
To whom is the request to terminate workers' contracts in liquidation submitted?
The trustee submits it to the court.
More articles on Liquidation of the Debtor's Assets
- Article 3
This article of the Regulations requires the debtor's directors or board members, before a voluntary liquidation item is put to a vote, to submit an auditor's report and a written declaration to the Ministry or the Capital Market Authority.
يلتزم أعضاء مجلس إدارة المدين أو مديروه أو أعضاء مجلس مديريه أو من في حكمهم - قبل إدراج بند التصفية الاختيارية للمدين؛ للتصويت عليه في جمعية المساهمين أو جمعية
- Article 5
After registration of a request to open any liquidation procedure, the court may appoint a trustee to replace the debtor in managing its activity, or seize the debtor's assets.
للمحكمة -من تلقاء نفسها أو بناء على طلب ذي مصلحة- أن تأمر, بعد قيد طلب افتتاح أي من إجراءات التصفية، بأي مما يأتي: أ - تعيين أمين مدرج في قائمة الأمناء يحل محل
- Article 11
The trustee sells the bankruptcy estate's assets after the judgment or decision opening the liquidation procedure, or the liquidation procedure for small debtors, becomes final.
يتولى الأمين بيع أصول التفليسة بعد اكتساب حكم أو قرار افتتاح إجراء التصفية أو إجراء التصفية لصغار المدينين الصفة النهائية.
- Article 21
A natural-person debtor who has not been discharged from a remaining debt must notify creditors if he starts a profit-making activity within 24 months of ending liquidation, and apply to distribute any money that comes to him.
1- على المدين ذي الصفة الطبيعية -الذي لم يبرأ من دين متبق في ذمته- تبليغ دائنيه عند بدء ممارسته نشاطاً تجارياً أو مهنياً أو يهدف إلى تحقيق الربح خلال (أربعة وعش
- Article 26
This article sets out the creditors' committee's tasks in representing the creditors, including approving the sale of any asset worth more than a quarter of the bankruptcy estate's assets, and lets its chair set the time and place of meetings.
1- تلتزم لجنة الدائنين بتمثيل الدائنين في المهمات المنصوص عليها في النظام واللائحة، وتشمل مهماتها الآتي: أ - الموافقة على بيع أي أصل تتجاوز قيمته ربع قيمة أصول
- Article 48
This article requires that a creditor's payment request to the debtor under paragraph (2/c) of Article 93 of the Law be dated and state the amount of the debt and its cause.
يجب أن يكون طلب سداد الدين الذي يقدمه الدائن إلى المدين بموجب الفقرة ( 2 / ج ) من المادة (الثالثة والتسعين) من النظام مؤرخاً ومحدداً فيه مقدار الدين وسبب نشوئه.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.