Leave
Article 111 of the Saudi Labour Law:payment for leave never taken
Under Article 111, unused leave becomes money owed when an employee leaves. Leave pay is also due for part of a year, in proportion to the time served, so a full year of service is not required.
- Article 111
- Explanatory guidance
Article 111 is short, but it covers a line in every final settlement: the leave days the employee never took. They are paid out when the employee leaves. They do not lapse at the end of the year.
It has a second rule: leave pay builds up for part of a year in proportion to the time served. Seven months of service earn a proportional 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 official reference is the Arabic text published by the Bureau of Experts at the Council of Ministers.
The English above is a working translation.
The payment uses the full wage
Leave pay is based on the wage the employee receives for working days. Article 2 of the Law defines the wage as the basic wage plus established allowances and increments, so use that figure and not the basic wage alone.
Part years earn their share
An employee who works part of a year is owed a proportional share of leave pay. The usual method divides the annual balance by twelve and multiplies by the months served. On a twenty-one-day entitlement, that is 1.75 days a month.
Payable however the contract ended
The text links the payment to leaving before the leave is taken, whatever the reason for leaving. It is owed when a contract expires under Article 74, on resignation, and on dismissal under Article 80. Dismissal removes the gratuity, but not leave pay.
What enters the calculation
- The remaining balance after deducting leave actually taken.
- Any balance carried over from the previous year, if it was deferred in line with Article 110.
- The pro rata share for the final part year, based on months served.
- The wage as defined by the Law, not the basic wage alone.
Common mistakes
Lapsing the balance at year end
The balance does not lapse. Article 110 covers deferral, and Article 111 turns the balance into money when the employee leaves.
Calculating on the basic wage
The legal wage includes established allowances and increments. Using the basic wage alone underpays the employee.
Denying leave pay after an Article 80 dismissal
Dismissal removes the gratuity. It does not remove payment for accrued leave the employee did not take.
How Barez applies this article
An up-to-date balance
Barez shows the accrued balance on any date, so the amount on the last day needs no manual calculation.
A separate settlement line
Leave pay appears as its own line beside the gratuity, so each can be checked separately.
Carry-over accounted for
Days carried over from a previous year are added under their own rules, so they are not lost or counted twice.
Sources
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.
Article 111
Frequently asked questions
Does unused annual leave expire in Saudi Arabia?
No. Article 110 governs deferral, and Article 111 entitles the employee to payment for accrued leave days if they leave work before taking them.
Is leave pay owed for less than a full year of service?
Yes. The text grants leave pay for parts of a year in proportion to the period served, so completing a full year is not required.
Which wage is used to calculate it?
The wage as defined by the Law, that is the basic wage plus established allowances and increments, not the basic wage alone.
Labour law articles
Continue from here
Article 109: annual leave
Where the balance comes from and when it rises to thirty days.
Annual leave calculator
Compute the remaining balance and its value.
The final settlement
How the closing statement is put together.
Wage Protection System
Leave pay is part of the dues the wage file reports.
Experience certificate template
The certificate handed over with the settlement of dues.
Article 74 of the Saudi Labour Law: when an employment contract ends
Article 74 lists every ground on which an employment contract ends, including resignation and bankruptcy rulings, both added in 1446H. The ground decides what the employee is owed, so settle it first.
Article 77Article 77 of the Saudi Labour Law: compensation for unlawful termination
Article 77 sets a fixed formula for compensation: fifteen days' wage per year of service on an indefinite contract, or the wage for the remaining term on a fixed one, and never less than two months' wage.
Article 80Article 80 of the Saudi Labour Law: nine cases for dismissal without gratuity
Article 80 is a narrow exception to employee protection. It lists nine cases that allow termination without gratuity, notice or compensation. In every case, the employee must first be given the chance to object.
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