Company closure or bankruptcy — do your dues disappear?

4 min read Article 74

The short answer

Hard news, but the answer is clear: your dues are protected even if the company goes bankrupt.

🏢 Permanent closure of the establishment

Under Article 74, the permanent closure of an establishment is a legitimate reason to end an employment contract. In this case:

✅ The worker is entitled to full End-of-Service Gratuity
✅ The worker is entitled to compensation for accrued leave
✅ The worker is entitled to all overdue wages

🛡️ The Workers' Protection Fund — for expatriate workers

If the employer is unable to pay (bankruptcy or financial distress), the Workers' Protection Fund steps in to cover:

Overdue wages up to a certain limit
End-of-Service Gratuity
Repatriation costs

📋 How do you apply to the Fund?

Through the Ministry of Human Resources portal (hrsd.gov.sa) by submitting: residency ID, contract, latest payslip.

📜 Article 74 of the Labor Law: The permanent closure of an establishment is a legitimate reason to end the contract, with entitlement to all dues. Expatriate Workers Regulations: the Workers' Protection Fund covers dues when the employer is in financial distress.

💡 If the company closed and is unable to pay, apply to the Ministry immediately. Do not wait — the 12-month statute of limitations runs from the date of closure.

Source: Saudi Labor Law — Article 74