Article 79 of the Saudi Labor Law
المادة 79 من نظام العمل · الباب الخامس: علاقات العمل
An employment contract does not end with the employer's death unless the employer's person was taken into account in contracting, but it does end with the worker's death or incapacity established by an approved medical certificate.
Official text (Arabic)
This article has not been amended since the law was issued.
لا ينقضي عقد العمل بوفاة صاحب العمل، ما لم تكن شخصيته قد روعيت في إبرام العقد، ولكنه ينتهي بوفاة العامل أو بعجزه عن أداء عمله، وذلك بموجب شهادة طبية معتمدة من الجهات الصحية المخولة، أو من الطبيب المخول الذي يعينه صاحب العمل.
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 79 explained in plain English
Article 79 of the Labor Law sets out the effect of death or incapacity on the employment contract, and distinguishes clearly between the death of the employer and the death of the worker.
First: death of the employer. The rule is that the contract does not lapse on the employer's death; the worker continues in their work, and their rights and obligations remain in place with whoever succeeds the employer in the establishment. The only exception is where the employer's person was taken into account when the contract was concluded, meaning the worker contracted to serve that person in particular and not to work in a continuing establishment; in that case the contract ends on their death because the subject matter of the contract itself has gone.
Second: death or incapacity of the worker. The contract ends on the worker's death, because performing the work is a personal obligation that no one can perform in their place. It also ends on the worker's incapacity to perform their work, under two conditions:
- The incapacity must actually prevent performance of the agreed work.
- The incapacity must be established by an approved medical certificate from the authorized health bodies, or from the authorized doctor appointed by the employer.
It is not enough for the employer to assess on its own that the worker has become unable, and an occasional illness is not enough; there must be a medical certificate issued by an authorized body that determines the incapacity.
Where the article sits among its neighbors: ending under this article is not a termination by the employer like the nine cases listed in Article 80, and it is not an ending by the will of one party that requires a notice period as in Article 75; it is an ending that occurs by operation of the Law for a reason outside the will of the parties. As for the dues that follow this ending for the worker or their heirs, reference is made to the other provisions of the Law.
If the worker disputes the validity of the medical certificate or the existence of the incapacity at all, or the employer's heirs differ with the workers over the continuation of the contracts, it is advisable to consult a labor lawyer to assess the position according to the circumstances of each case.
Practical example
Ahmed works as an accountant at a trading establishment in Riyadh owned by one person. The owner of the establishment died, and Ahmed thought his contract had ended. But under Article 79 his contract remains in place and he continues in his work, because he contracted to work in the establishment and not to serve the owner personally. By contrast, if Khalid had contracted with the same person to be his private driver, the employer's person was taken into account in the contract, and Khalid's contract ends on his death. If Ahmed later suffered an injury that left him unable to work, his contract would end only on an approved medical certificate from an authorized health body, or from the doctor the establishment appoints, determining this incapacity.
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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Active contributorFrequently asked questions about Article 79 of the Saudi Labor Law
Does an employment contract end on the employer's death?
No. The rule in Article 79 is that the contract does not lapse on the employer's death and continues with whoever succeeds them. The exception is where the employer's person was taken into account when the contract was concluded, in which case the contract ends on their death.
When does an employment contract end because of the worker's incapacity?
The contract ends if the worker is unable to perform their work, provided the incapacity is established by an approved medical certificate from the authorized health bodies or from the authorized doctor appointed by the employer.
Can an employer end the contract just because it considers the worker has become incapacitated?
No. Article 79 requires an approved medical certificate from an authorized health body or from the authorized doctor appointed by the employer, and the employer's assessment alone is not enough.
What is the difference between a contract ending under Article 79 and dismissal under Article 80?
Article 80 concerns termination of the contract by the employer in specified cases because of the worker's conduct, whereas Article 79 concerns the contract ending by operation of the Law for a reason outside the will of the parties, namely death or medically established incapacity.
More articles on Terminating the Employment Contract
- Article 57
Article 57 provides that an employment contract concluded to perform a specific job ends automatically once the agreed work is completed.
إذا كان العقد من أجل القيام بعمل معين فإنه ينتهي بإنجاز العمل المتفق عليه.
- Article 64Amended (1436 AH)
Article 64 requires the employer, on the end of the contract, to give the worker a free service certificate free of anything harmful to them, and to return all certificates and documents they deposited with it.
يلتزم صاحب العمل عند انتهاء عقد العمل بما يأتي : 1 - أن يعطي العامل – بناءً على طلبه – شهادة خدمة دون مقابل، يوضح فيها تاريخ التحاقه بالعمل، وتاريخ انتهاء علاقت
- Article 66
Article 66 sets out exhaustively the six disciplinary sanctions an employer may impose on a worker, from a warning to dismissal in the cases set in the Law.
الجزاءات التأديبية التي يجوز لصاحب العمل توقيعها على العامل: 1 - الإنذار. 2 - الغرامة. 3 - الحرمان من العلاوة أو تأجيلها لمدة لا تزيد على سنة متى كانت مقررة من
- Article 74Amended by M/44
Article 74 lists the cases in which an employment contract ends, including written agreement of the parties, expiry of the term, resignation, reaching retirement age, force majeure, permanent closure of the establishment, and bankruptcy.
ينتهي عقد العمل في أي من الأحوال الآتية : 1 - إذا اتفق الطرفان على إنهائه، بشرط أن تكون موافقة العامل كتابية. 2 - إذا انتهت المدة المحددة في العقد، ما لم يكن ال
- Article 75Amended by M/44
Article 75 sets the written notice period for ending an open-ended contract for a legitimate reason: 60 days from the employer and 30 days from the worker if wages are monthly, and 30 days for both otherwise.
1- إذا كان العقد غير محدد المدة وكان الأجر يدفع شهريًّا، جاز لأي من طرفيه إنهاؤه بناءً على سبب مشروع، وفق ما يلي: أ- إذا كان الإنهاء من طرف العامل، فيجب عليه أن
- Article 76Amended (1436 AH)
Whoever ends an open-ended contract without observing the notice period in Article 75 must pay the other party a sum equal to the worker's wage for that period, unless they agree on more.
إذا لم يراع الطرف الذي أنهى العقد غير المحدد المدة المهلة المحدد للإشعار وفقاً للمادة (الخامسة والسبعين) من هذا النظام، فإنه يلتزم بأن يدفع للطرف الآخر عن مهلة
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.