The Kingdom of Saudi Arabia has labor laws that may require the employer to pay End of Service Award money, also known as GOSI money, to U.S. citizens who work in Saudi Arabia upon the end of their employment.
For example, Article 84 of the Saudi Labor and Workmen Law requires an employer to pay an employee working in Saudi Arabia, upon the end of the employment relationship, End of Service Award money (a/k/a GOSI money) of a half-month’s wage for each of the first five years and a one month’s wage for each of the following years. Douglas v. Smith Int'l, Inc., 481 F. App'x 917, 921 (5th Cir. 2012) ("[End of Service Award/GOSI money] is a right granted employees under Saudi Labor Law.”). That law can be enforced in the United States through U.S. Courts or arbitration. Douglas v. Smith Intl., Inc., CV H-11-1924, 2011 WL 13180300, at *1 (S.D. Tex. Sept. 30, 2011).
The last month's actual wage is generally considered the basis for that End of Service Award/GOSI calculation. Douglas v. Smith Intl., Inc., CV H-11-1924, 2011 WL 13180300, at *1 (S.D. Tex. Sept. 30, 2011). So, that calculation may include not only base salary, but also hardship pay, stayover pay, location premium, and other remuneration and benefits. Douglas v. Smith Intern., Inc., 481 Fed. Appx. 917, 922 (5th Cir. 2012).
The Saudi Labor and Workmen Law also places restrictions on an employer's ability to have the employee waive his rights to End of Service Award pay (GOSI pay). Article 8 of that law provides that any condition which violates the provisions of that law as well as any release involving the rights of the employee arising from that law during shall be void, except where such condition or release is more beneficial to the employee. Douglas v. Smith Intl., Inc., CV H-11-1924, 2011 WL 13180300, at *1 (S.D. Tex. Sept. 30, 2011) (“Parties cannot contract out of national labor-law requirements.").
This webpage should not be considered legal advice. Contact the Vaught Firm for a no cost initial consultation to learn more about the applicable law relative to your specific situation. The content of this page is based on law as applied within the U.S. Court of Appeals for the Fifth Circuit.