💰 The Simple Formula
When employment ends, the employee is entitled to cash compensation for their accumulated unused leave:
Leave Compensation = (Monthly salary ÷ 30) × unused leave days
📋 Important Rules
- You are entitled to compensation whether you were fired or resigned
- Article 119: You cannot waive your leave for cash during employment
- However, at the end of employment, compensation is mandatory
📜 Article 119 — Labor Law: An employee may not waive their right to leave. Upon termination of the contract, remaining leave must be calculated and paid in cash.
📊 Fatima has 45 days of leave balance (salary 4000 SAR)
Daily wage4000 ÷ 30 = 133 SAR
× 45 leave days133 × 45 = 5985 SAR ✅
Source: Saudi Labor Law — Article 119
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