Article 111 is short but it settles a line that appears in every final settlement: what happens to the leave days an employee never took? They become payable on leaving; they do not lapse at year end.
It carries a second rule of equal weight: leave pay accrues for parts of a year in proportion to the period served, so seven months of service earn their share of the balance.
The text of the article
A worker is entitled to payment for the days of accrued leave if they leave work before taking it, in proportion to the period for which leave was not taken, and is likewise entitled to leave pay for parts of a year in proportion to the period served.
Status of the text: This article has not been amended; the text below is the original operative text.
The Arabic text published by the Bureau of Experts at the Council of Ministers is the reference; the English above is a working translation.
What the article means in practice
The payment is based on the wage, not the basic alone
Leave pay is computed on the wage the worker receives for working days. Article 2 of the Law defines the wage as the basic wage plus established allowances and increments, so the calculation follows that definition rather than the basic wage in isolation.
Part years earn their share
A worker who serves part of a year is owed leave pay in proportion. The usual method divides the annual balance by twelve and multiplies by months served, giving 1.75 days a month on a twenty-one-day entitlement.
Payable however the contract ended
The text ties the entitlement to leaving before taking the leave and draws no distinction by reason, so it is owed on expiry under Article 74, on resignation, and on dismissal under Article 80, because what a dismissal forfeits is the gratuity rather than leave pay.
What enters the calculation
- 1The remaining balance after deducting leave actually taken.
- 2Any balance carried over from the previous year where deferral followed Article 110.
- 3The share of the final part year in proportion to months served.
- 4The wage used for the calculation, being the wage as defined by the Law rather than the basic alone.
Mistakes that recur in practice
Lapsing the balance at year end
The balance does not lapse: Article 110 governs deferral and Article 111 turns it into money on leaving.
Calculating on the basic wage
The statutory wage includes established allowances and increments, so limiting the base understates the payment.
Denying leave pay after an Article 80 dismissal
Dismissal forfeits the gratuity; it does not forfeit payment for accrued leave not taken.
How Barez applies this article
The balance is live, not annual
Barez shows the accrued balance on any date, so the true amount on the last day needs no manual work.
A separate settlement line
Leave pay appears as its own line beside the gratuity, so each can be checked on its own.
Carry-over accounted for
Days carried from a previous year enter the balance under their own rules, neither lost nor counted twice.
Sources
- Saudi Labour Law, Bureau of Experts at the Council of Ministers
- Ministry of Human Resources and Social Development
This page is explanatory guidance, not legal advice. In a dispute, rely on the official text and consult the Ministry of Human Resources and Social Development or a licensed lawyer.