SCSLD 431/1/75/2010

This case involved the rights of an employee who had been dismissed after his department was closed. As the employers had signed a contract with the employee to work in that department, at a time they knew it was closing, the employee was due compensation.

Background

An employee filed a case against a bank with the First Instance Authority for Settlement of Labour Disputes (FIASLD) in Mecca requesting he be reinstated.

The FIASLD had issued a ruling requesting the bank to reinstate the employee and pay his salaries from the date on which he was dismissed up to his return.

The bank filed an appeal before SLHASLD claiming the employee had been dismissed because the section he worked in had been closed.

Decision

The SLHASLD stated the bank had signed a contract with the employee to work in this section while it was aware that that section was being closed and as such the dismissal of the employee was invalid. The SLHASLD stated under Article 58 of the Litigation Law the employee should be compensated instead of being reinstated.