Judicial principles and studies

Labor Law — Settlement Signed with Resignation — Effect of Article 4(b) on Validity

A settlement signed on the same day as a resignation while the worker is at work conflicts with Article 4(b) of the Labor Law. The appellate court must weigh evidence to determine the resignation’s validity and its legal consequences, taking into account amounts actually received.

Updated: 10 September 2026

Prepared and reviewed by: Ashraf Al-Khawaja

01

Subject

The issue concerns the validity of a settlement concluded on the same day a resignation was submitted while the worker remained at the workplace, and whether Article 4(b) of the Labor Law renders such a settlement null.

02

Summary

- A settlement signed on the day of resignation while the employee is at work conflicts with Article 4(b) and cannot be relied upon, as reflected in the provided points. - The claimant’s failure to deny the signature attributed to them does not automatically validate the settlement if they have raised substantive pleas that, if proven, would void the resignation and the settlement under Article 4(b) and settled case law. - The appellate court must weigh the evidence presented by both parties to decide whether the resignation is valid, then determine the legal consequences in light of the claimant’s claims and the amounts actually received under the settlement.

03

Practical significance

The appellate court should thoroughly evaluate competing evidence and consider any declared grounds for nullity before accepting a signed settlement; afterwards it must calculate the legal effects on the claimant’s relief, accounting for any sums received. This approach is consistent with the principles cited in the points. This content is an educational summary only and not a judicial text or legal advice.

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

Sources and references

Verify the official text and latest amendments before relying on this material professionally.

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