When may an employer end the contract without award, notice or compensation?

What the article says

The article starts with a general rule: the employer may not end the contract without paying the worker's end-of-service award, giving notice, or paying compensation. It then makes nine exceptions, and in all of them the worker must be given the opportunity to state the reasons for objecting to the termination.

"The employer may not terminate the contract without the worker's end-of-service award, notice or compensation except in the following cases, and provided the employer gives the worker the opportunity to state the reasons for objecting to the termination."

Opening of Article 80, Saudi Labor Law, in the wording issued by Royal Decree M/46 dated 5/6/1436H (25 March 2015). Unofficial working translation for awareness only; the official text is the Arabic published by the Bureau of Experts at the Council of Ministers.

The nine cases in brief

1. The worker assaults the employer, the responsible manager, or one of the worker's superiors or subordinates, during or because of work.
2. The worker does not perform the essential obligations of the employment contract, does not obey legitimate orders, or deliberately ignores the safety instructions the employer has posted in a visible place, despite a written warning.
3. It is proven that the worker behaved badly or committed an act that breaches honour or trust.
4. The worker deliberately commits an act or omission intended to cause the employer material loss, provided the employer reports the incident to the competent authorities within 24 hours of learning of it.
5. It is proven that the worker used forgery to obtain the job.
6. The worker is appointed on probation.
7. The worker is absent without a legitimate reason for more than 30 days in one contract year, or for more than 15 consecutive days, provided the dismissal is preceded by a written warning after 20 days of absence in the first case and 10 days in the second.
8. It is proven that the worker unlawfully used the position for personal results and gains.
9. It is proven that the worker disclosed industrial or commercial secrets of the work.

Cases 3, 5, 8 and 9 are tied to the words "if it is proven", that is, to the fact being established. The article also sets clear procedural conditions:

• In every case: the worker is given the opportunity to state the reasons for objecting.
• In cases 2 and 7: a written warning before termination.
• In case 4: a report to the competent authorities within 24 hours of the employer learning of the incident.

Who it applies to

The article governs termination by the employer in employment contracts under the Labor Law. Its counterpart on the worker's side is Article 81, which lists the cases in which a worker may leave without notice while keeping all rights.

This explainer covers the private sector under the Labor Law. It does not cover civil servants or military personnel, who have their own systems. Article 7 also excludes some groups from the Law, among them domestic workers, for whom the Minister issues a special regulation. For part-time workers, the Law applies only as far as occupational safety and health, work injuries and what the Minister decides are concerned (Article 5).

A hypothetical example: counting absence under case 7

Case 7 sets two different thresholds for absence without a legitimate reason, each with its own point for the written warning:

A hypothetical illustration only: a worker is absent without a legitimate reason on scattered days within one contract year. When the total reaches 20 days, that is the point for the written warning the text requires before dismissal. If the total then exceeds 30 days in the same contract year, the absence falls within case 7. If instead the worker is absent for 16 consecutive days, the written warning comes after 10 days of absence. In every scenario the condition of giving the worker the opportunity to object still applies.

Common misconceptions

• "An Article 80 dismissal needs no procedure." The text requires the opportunity to object in every case, a written warning in cases 2 and 7, and a report to the competent authorities within 24 hours in case 4.
• "Any absence justifies dismissal." Case 7 requires absence without a legitimate reason beyond one of the two thresholds, and a written warning before dismissal.
• "Absence is counted over the calendar year." The text speaks of "one contract year".
• "The worker loses everything." The article names three things: the award, notice and compensation. It does not deal with the other rights the Law sets when service ends, such as paying the wage and settling entitlements (Article 88) and pay for unused leave days (Article 111).
• "The 2025 amendments changed Article 80." The amendments under Royal Decree M/44 did not include it. Its current text dates from 1436H (2015).

Related articles

• Article 81: leaving work without notice while keeping all rights.
• Article 77: compensation when a contract is ended for an illegitimate reason.
• Article 75: the notice period in an open-ended contract.
• Article 74: the cases in which an employment contract ends.
• Article 53: either party may end the contract during probation, and total probation may not exceed 180 days.
• Articles 84 to 88: the end-of-service award and the deadline to settle entitlements.
• Articles 109 to 111: annual leave and pay for unused days.

Official source

The full text of the Labor Law and its amendments is published on the Bureau of Experts at the Council of Ministers portal. The Arabic text published there is the official reference.