Judicial principles and studies
End-of-service Compensation and Work Interruptions Exceeding Sixty Days
This study outlines how periods of interruption affect continuity of service for end-of-service pay, and clarifies the effects of subsequent contracts, settlements, and resignation on an employee’s financial rights.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
The available points establish that interruptions of work of up to sixty days are treated as continuous service for calculating end-of-service compensation. If an interruption exceeds sixty days, the employment is considered discontinuous; the prior contract is treated as terminated by mutual consent and a newly signed contract (an indefinite one) marks a separate employment phase. The points also state that a settlement signed after separation is valid and effective under the labor law, and that a resignation by the employee is not tainted by coercion or fraudulent inducement under the civil code provisions. An employee does not become entitled to the fourteenth salary if employment ends before the entitlement date. It is further noted that a previous judicial view treating the sixty-day period as merely procedural and regarding reinstatement with the same position and pay as a waiver by the employer has been set aside.
Summary
- Interruptions up to sixty days count as continuous service for end-of-service pay purposes. - Interruptions longer than sixty days break continuity, and entitlements are calculated under the new contract. - Post-separation settlements are valid and produce their effects if concluded properly. - A resignation is not considered void for coercion or fraud under the cited civil code provisions. - No entitlement to the fourteenth salary arises if employment terminates before the due date.
Practical significance
This position clarifies that continuity for end-of-service calculations depends on the actual interruption length: up to sixty days preserves the continuity, while longer interruptions separate service periods and bar claims based on the prior contract. It also confirms the legal effectiveness of settlements and voluntary resignations when requirements of consent are met. Note: This is an educational summary and not a judicial text or legal advice.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.