SCSLD 432/1/1213/2011

This case involved a claim by an employee for their dues. Holiday pay and end of service gratuity were awarded. However, this was incorrect as the employee had been initially hired by a previous owner of a building and the new building owner did not have legal capacity in this case.

Background

An employee filed a claim with the First Instance Authority for Settlement of Labour Disputes (FIASLD) in Jeddah against an employer requesting the payment of their labour entitlements.

The FIASLD issued a ruling requesting the employer to pay the employee 416.66 Riyals in holiday pay, 93194.44 Riyals as an end of service gratuity, but dismissed the rest of the requests.

The employer filed an appeal before the SLHASLD, which examined the case and said that the employee had been hired by the former company which owned the building and therefore the SLHASLD did not agree with the FIASLD because the ruling had been issued against a party which did not have legal capacity.

Therefore, the SLHASLD repealed the ruling and referred the case to the FIASLD to be reconsidered against the relevant company.