Article 80 of the Saudi Labor Law: When May a Contract Be Terminated Without Award, Notice or Compensation?

The text and its core condition

Under the text as amended by Royal Decree No. (M/46) dated 5/6/1436 AH, the employer may not terminate the contract without paying the worker's award, giving notice or paying compensation except in specific cases, and provided the employer gives the worker the opportunity to state his reasons for objecting to the termination. This condition is not a formality: the worker must be able to respond to the allegations before the decision is made, and it is advisable to document this in writing.

The nine cases

• The worker assaults the employer, the responsible manager, or any of his superiors or subordinates during or because of work.
• The worker fails to perform his essential obligations, fails to obey lawful orders, or deliberately disregards safety instructions posted in a visible place, despite a written warning.
• It is proven that the worker engaged in bad conduct or committed an act violating honor or integrity.
• The worker intentionally commits an act or omission intended to cause material loss to the employer, provided the employer reports the incident to the competent authorities within twenty-four hours of learning of it.
• It is proven that the worker resorted to forgery to obtain the job.
• The worker was appointed on probation.
• The worker is absent without a legitimate reason for more than thirty days in one contractual year, or more than fifteen consecutive days, provided dismissal is preceded by a written warning from the employer after twenty days of absence in the first case and ten days of absence in the second.
• It is proven that the worker unlawfully exploited his position to obtain personal results and gains.
• It is proven that the worker disclosed industrial or commercial secrets relating to his work.

Did the 2025 amendments change Article 80?

The Labor Law amendments issued by Royal Decree No. (M/44) dated 8/2/1446 AH took effect on 20/8/1446 AH, corresponding to February 19, 2025. According to the text of the law published on the Bureau of Experts website at the time of writing, Article 80 was not among the amended articles, and the last recorded amendment to it is the 1436 AH amendment. Even so, it is advisable to check the updated official text whenever applying it to a case, since laws and regulations can be updated.

However, the amendments touched related topics, most notably probation: Article 53 now provides that the total probation period may not exceed one hundred and eighty days in any case, and either party may terminate the contract during it.

Burden of proof and common mistakes

Most of the nine cases are tied to the words "if it is proven," to a written warning or to a reporting deadline, so the burden of proving that the case exists and its conditions are met usually falls on the employer. The sequence of events is typically examined: when the violation occurred, when the employer learned of it, what action was taken, and whether the worker was allowed to respond. Frequent mistakes include:

• Dismissing for absence without issuing the written warning on time.
• Relying on a general accusation without an investigation or evidence.
• Not reporting to the competent authorities within the deadline in cases of intentional material loss.
• Not allowing the worker to state his reasons for objecting.

If the case is not proven, the termination may be considered to be for an illegitimate reason, and a claim is then examined under Article 77 alongside the end-of-service award and other entitlements.

Article 80, probation and the worker's corresponding rights

Paragraph 6 (a worker appointed on probation) is linked to the probation rules: Article 54 provides that if the contract is terminated during the probation period, neither party is entitled to compensation and the worker is not entitled to an end-of-service award. This requires that probation be expressly stated in the contract and fall within the statutory period.

Conversely, Article 81 of the law sets out cases in which the worker may leave work without notice while retaining his statutory rights, including the employer's breach of its essential obligations, assault on the worker, or unjust treatment. The two articles mirror each other, and each has its own conditions and evidence.

Practical steps for employers

• Document the violation with its date and evidence, and keep written warnings and proof of their delivery.
• Hold a written investigation recording the allegations and the worker's response.
• Verify that the specific case applies and its conditions are met before issuing the decision.
• Issue the termination decision in writing, stating the paragraph relied on.
• Review the work regulations and internal policies to ensure they are consistent with the law.

Practical steps for workers

• Request a copy of the termination decision and its written reason.
• Submit your response in writing and keep proof of submission.
• Gather what supports your position: correspondence, medical reports in cases of absence, and colleagues' statements.
• Start with a request for amicable settlement within the statutory period before moving to the labor court.

The outcome of every file depends on its facts and documents, so it is advisable to have your situation reviewed before signing any final settlement.

Article 80: frequently asked questions

Is a worker dismissed under Article 80 entitled to the end-of-service award?

If one of the nine cases is proven and its conditions are met, the contract is terminated without award, notice or compensation. If the case is not proven, the termination may be treated as being for an illegitimate reason, and the award and compensation are then assessed under Article 77. You can estimate both with the end-of-service calculator and the Article 77 compensation calculator.

How many days of absence allow dismissal under Article 80?

Absence without a legitimate reason for more than thirty days in one contractual year, or more than fifteen consecutive days, provided a written warning is given after twenty days of absence in the first case and after ten days of absence in the second.

Can an employer dismiss under Article 80 without an investigation?

The article requires the employer to give the worker an opportunity to state the reasons for objecting to the termination. A written investigation recording the allegation and the worker's response is therefore advisable.

What is the difference between Article 80 and Article 81?

Article 80 sets out cases in which the employer may terminate without award, notice or compensation; Article 81 sets out cases in which the worker may leave without notice while keeping his statutory rights.

How long does a worker have to challenge a dismissal?

Under Article 222, claims relating to Labor Law or employment-contract rights are not heard twelve months after the employment relationship ends, and a claim starts with an amicable settlement request. Check your deadline with the limitation period calculator.