The Fifth Chamber of the Labor Dispute Resolution Committee obligated a company to pay outstanding financial dues amounting to 416,000 riyals, compensation of 30,000 riyals to a director working for the company, and an end-of-service gratuity of 67,000 riyals.
Lawyer Noora Sarhan, the legal representative of the affected party, submitted a defense memorandum supported by evidence and arguments proving his entitlement to compensation, as he was the company director and was not one of the authorized signatories nor had any connection to the losses incurred by the company.
The facts of the dispute are summarized as follows: the complainant filed his case before the Labor Dispute Resolution Committees, requesting that the company he worked for be ordered to pay him overdue amounts of 720,000 riyals, an end-of-service gratuity of 79,000 riyals, a notice allowance of 48,000 riyals, a transportation allowance of 20,000 riyals, and 3 million riyals in compensation for material and moral damages.
Investigations indicate that the complainant worked for an employer who did not pay his dues, prompting him to file the complaint.
The court appointed an expert to conduct an investigation into the details of the dispute, which concluded that the complainant’s dues amounted to 532,597 riyals in outstanding financial dues.
The expert’s report indicated that the affected party worked for the company under an open-ended employment contract in an engineering position. Regarding the complainant’s request for 4 million riyals in compensation for the severe damages and losses incurred by the company’s projects he oversaw, the company claimed he was the company director and that during his tenure, his negligence caused damages and losses amounting to 4 million riyals. He undertook major projects exceeding the budgets and reports, leading to the company being expelled from one project due to delays, and in another project, a delay penalty of 200,000 riyals was imposed. The company has receivables from other companies for projects it executed, but the complainant did not collect these receivables.
The company suffered significant losses, and the documents lacked any evidence proving the defendant’s negligence or the losses he allegedly caused. It was also established from the commercial register that the defendant was not one of the authorized signatories.
Article 211 of the Civil and Commercial Procedures Law No. 13 of 1990 stipulates that the creditor must prove the obligation, and the debtor must prove the discharge of it. Thus, the claim was found to be unsubstantiated, and the committee dismissed it.
The Labor Dispute Resolution Committee decided to obligate the company the complainant worked for to pay 30,000 riyals as material and moral compensation, 67,000 riyals as an end-of-service gratuity, and 416,000 riyals as outstanding financial dues.
