Judicial principles and studies

Worker Leaving Employment — Article 29 of the Labor Law: Wage Reduction

Decision reference: تمييز حقوق هيئة عامة رقم(٣٨٠٥/٢٠٢٥)

Article 29 provides that an employer's reduction of wages constitutes a breach allowing the worker to leave without notice while retaining end-of-service rights. Where a claimant fails to prove the salary and the employer does not deny it, the undisputed amount is used to calculate the worker's entitlements.

Updated: 10 September 2026

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Instant summary

Article 29 provides that an employer's reduction of wages constitutes a breach allowing the worker to leave without notice while retaining end-of-service rights. Where a claimant fails to prove the salary and the employer does not deny it, the undisputed amount is used to calculate the worker's entitlements.

Key points

  • Subject
  • Summary
  • Practical significance

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01

Subject

Article 29 is understood to treat an employer's reduction of a worker's wage as a breach of a fundamental element of the employment contract, entitling the worker to leave without notice while preserving their legal end-of-service rights.

02

Summary

An employer's breach regarding wages is considered material and allows the worker to terminate employment and retain entitlements related to the end of service, including severance and notice pay, due to the centrality of wages in the contract. Regarding proof of salary, if the claimant does not establish the wage claimed and the respondent does not dispute that amount, the undisputed figure is adopted to calculate the claimant's (worker's) rights.

03

Practical significance

As a practical effect, wage reduction can justify a worker's departure with a claim to end-of-service entitlements, and the calculation of those entitlements may rely on any salary amount not disputed by the employer. This summary is an educational overview only; it is not judicial text and does not constitute legal advice.

Frequently asked questions

Subject?

Article 29 is understood to treat an employer's reduction of a worker's wage as a breach of a fundamental element of the employment contract, entitling the worker to leave without notice while preserving their legal end-of-service rights.

Summary?

An employer's breach regarding wages is considered material and allows the worker to terminate employment and retain entitlements related to the end of service, including severance and notice pay, due to the centrality of wages in the contract. Regarding proof of salary, if the claimant does not establish the wage claimed and the respondent does not dispute that amount, the undisputed figure is adopted to calculate the claimant's (worker's) rights.

Practical significance?

As a practical effect, wage reduction can justify a worker's departure with a claim to end-of-service entitlements, and the calculation of those entitlements may rely on any salary amount not disputed by the employer. This summary is an educational overview only; it is not judicial text and does not constitute legal advice.

Notice: this article is general educational information and does not constitute legal advice or a final assessment of any matter.

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