Saudi Arabia – The General Organization for Social Insurance of Saudi Arabia confirmed that citizens who have been dismissed from their companies according to Article 77 of the Labour Law are entitled to Sand compensation system in the event of fulfilling the qualifying conditions. One of the most important conditions is that the beneficiary complies with the instructions issued by the Ministry of Labour and Social Development, in addition to the commitment to training determined by the ministry, and have no other source of income. Payroll starts from the first month following the date of eligibility. Article 77 of the Labour Code gives private companies the right to terminate the services of their employees, in return for paying 15 days wages for each year of employment. In recent months, several private sector companies in the Kingdom have dismissed thousands of Saudi employees, based on Article 77 of the Labour Code. The Ministry of Labour has warned against exploiting the loophole of Article 77 of the Labor Law, indicating that it will stop all its services for the establishment that proves practicing arbitrary dismissal against Saudis. Despite the banning of collective dismissal of Saudis, subsequent reports confirmed that several companies had dismissed hundreds of Saudi employees, under the pretext of the completion of civil construction works.
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