Arbitrary Dismissal & End-of-Service in Yemen (Law 5/1995)
Yemen: end-of-service gratuity of 1 month/year (Art. 120), arbitrary-dismissal compensation capped at 6 months, notice by pay period, and the region-dependent dispute forum.
Under Yemeni Labour Law No. 5 of 1995, an end-of-service gratuity of at least one month's wage per year of service applies to uninsured workers, on the last wage (Article 120). Compensation for arbitrary dismissal is set by the dispute body and capped at six months' wages. Notice equals the pay period (30 days monthly, 15 days semi-monthly, 1 week for weekly/daily). Disputes historically went to an arbitration committee; since 2021 the northern authorities replaced it with a Labour Court.
FAQ
How much is end-of-service pay in Yemen?
At least one month's wage per year of service on the last wage for uninsured workers (Article 120 of Labour Law 5/1995); insured workers receive their entitlement through social insurance.
What is the cap on arbitrary-dismissal compensation in Yemen?
It is set by the dispute body and capped at six months' wages, in addition to notice pay and other entitlements.
Where do I file a labour dispute in Yemen?
It depends on the region: a Labour Court in the north since 2021, or an arbitration committee in other de-facto-controlled areas, reflecting the country's partition.