Judicial principles and studies
Open‑ended Employment Contract: Retirement Age, Continuation and Representation Issues
The points address how reaching retirement age affects an open‑ended employment contract and the parties' rights, and highlight representation and procedural validity issues for the court to examine.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
The official points read Article 21(d) of the Labor Law to mean that an open‑ended employment contract ends when the worker reaches the retirement age set by the Social Security Law. If the worker continues employment with the employer’s consent and receives an old‑age pension, the contract remains in force and the worker continues to receive wages and benefits; however, the employer retains the right to terminate the contract unilaterally, and such termination is not automatically an abusive dismissal because the contract is not perpetual. The points also note the requirement to notify the plaintiff one month in advance under Article 23 of the Labor Law. Additionally, the court must verify the representative capacity of the deputy resident representative of the defendant at the time the power of attorney was signed and whether submitted documents, memoranda and evidence were filed within applicable time limits, since the validity of the litigation and the correctness of trial procedures depend on these matters.
Summary
Continuation of work after reaching retirement age depends on employer consent and preserves pay and benefits where the worker receives an old‑age pension, but it does not preclude the employer from terminating the contract lawfully. Verification of representation and timeliness of filings are substantive‑formal issues that affect the validity of the proceedings and may change the outcome of labor rights adjudicated for the claimant.
Practical significance
- Continued employment after retirement requires employer consent and, when the worker receives an old‑age pension, the wage and benefits continue. - A one‑month notice to the worker is required when termination is effected, pursuant to Article 23 of the Labor Law. - Courts must examine the representative status of agents and the timeliness of documents because these issues bear on the validity of the case and may be raised at any stage. This content is a general 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.