Introduction
Article 80 of the Saudi Labor Law is one of the most sensitive and frequently litigated provisions in employment disputes. It allows an employer to terminate an employee without notice and without end-of-service compensation, but only in strictly defined cases and subject to rigorous procedural requirements.
Because misuse of Article 80 often results in wrongful termination claims, understanding when Article 80 applies, when it does not, and how Saudi labor courts interpret it is essential for both employers and employees in Saudi Arabia.
For a broader overview of employment rights and obligations, this topic should be read alongside our complete guide to Saudi labor law, which explains the overall legal framework governing employment relationships in Saudi Arabia.
What Is Article 80 in Saudi Labor Law?
Article 80 of the Saudi Labor Law permits an employer to terminate an employment contract without compensation or prior notice if the employee commits a serious violation expressly listed in the law, provided that due process is fully observed.
Importantly, Article 80 is an exceptional provision, not the general rule. Saudi courts interpret it narrowly, and the burden of proof lies entirely with the employer.
When Can an Employer Terminate Under Article 80?
Article 80 applies only if the employee commits one of the following violations:
1. Assault or Serious Misconduct
If the employee assaults the employer, a supervisor, or a colleague during work or because of work-related duties.
2. Willful Failure to Perform Essential Duties
When the employee deliberately fails to perform contractual or legal obligations despite receiving written warnings.
3. Dishonesty, Fraud, or Breach of Trust
If the employee commits theft, fraud, forgery, or any act involving dishonesty or abuse of trust.
4. Disclosure of Trade or Business Secrets
Revealing confidential business information that causes material damage to the employer.
5. Proven Moral or Ethical Misconduct
Acts involving immorality or professional misconduct while on duty.
6. Unjustified Absence From Work
- Absence for more than 20 non-consecutive days in a year, or
- Absence for more than 10 consecutive days,
provided that written warnings were issued prior to termination.
7. Abuse of Position for Personal Gain
Exploiting job authority to achieve unlawful personal benefits.
Procedural Requirements Under Article 80
Even if a violation occurs, Article 80 cannot be applied automatically.
Saudi labor courts require employers to demonstrate:
- A formal investigation
- Written documentation of the violation
- The employee’s opportunity to respond and defend
- Compliance with warning requirements (where applicable)
- Proportionality between the violation and termination
Failure to follow these steps often leads courts to invalidate the termination.
Difference Between Article 80 and Article 77
Understanding the distinction between these two articles is critical:
| Provision | Purpose | Compensation |
|---|---|---|
| Article 77 | Termination without cause | Compensation required |
| Article 80 | Termination for serious misconduct | No compensation |
Employers cannot rely on Article 80 to avoid paying compensation when the conditions of Article 77 apply.
Unlike Article 80, which applies only in cases of serious misconduct, Article 77 governs termination without cause and requires financial compensation to the employee.
Common Employer Mistakes When Applying Article 80
Saudi labor courts frequently reject Article 80 terminations due to:
- Lack of written evidence
- No formal investigation
- Verbal warnings only
- Minor violations treated as gross misconduct
- Delayed termination after the alleged incident
These mistakes often expose employers to wrongful termination claims and financial liability.
In many disputes, employers incorrectly rely on Article 80 when the situation legally falls under Article 77, exposing themselves to significant compensation claims.
Can an Employee Challenge Termination Under Article 80?
Yes. An employee may file a labor claim to:
- Challenge the validity of Article 80 grounds
- Claim compensation under Article 77
- Demand end-of-service benefits
- Seek damages for arbitrary dismissal
In practice, many Article 80 cases are overturned due to procedural deficiencies.
How Saudi Labor Courts Interpret Article 80
Saudi labor courts focus on:
- Strength and credibility of evidence
- Employer compliance with due process
- Timing between the violation and termination
- Proportionality of the disciplinary measure
If the court finds misuse of Article 80, the termination may be reclassified as unlawful.
When Article 80 Does Not Apply
Article 80 cannot be used in cases involving:
- Poor performance without documented warnings
- Organizational restructuring
- Economic or financial reasons
- Personality conflicts
- Disciplinary issues not listed in the law
In such cases, termination rules under Article 77 or contractual provisions apply instead.
Practical Guidance for Employers
Before invoking Article 80, employers should:
- Conduct a formal internal investigation
- Collect documentary evidence
- Issue written warnings when required
- Ensure legal compliance with Saudi labor regulations
- Seek legal review before termination
Improper use of Article 80 can result in significant legal and financial exposure.
Practical Guidance for Employees
If terminated under Article 80, employees should:
- Request written reasons for termination
- Preserve employment records
- Challenge unsupported allegations
- Consider filing a labor claim if procedural violations exist
Legal assessment is often decisive in such disputes.
Frequently Asked Questions (FAQ)
What is Article 80 in Saudi labor law?
It allows termination without compensation for serious misconduct, subject to strict legal conditions.
Is Article 80 mandatory?
No. It is optional and conditional upon meeting statutory requirements.
Can Article 80 be waived by contract?
No. It is a statutory provision and cannot be contractually waived.
Can an employer combine Article 77 and Article 80?
No. Each article serves a distinct legal purpose and cannot be merged.
Conclusion
Article 80 of the Saudi Labor Law is a powerful but high-risk termination mechanism. While it allows dismissal without compensation, Saudi courts scrutinize its use carefully and frequently invalidate terminations that lack proper procedure or evidence.
A clear understanding of Article 80—and its distinction from Article 77—is essential to avoid costly labor disputes and protect legal rights.
Conclusion
Understanding Article 80 of the Saudi Labor Law requires more than reading the legal text—it demands awareness of how Saudi labor courts interpret and apply it in real disputes. Because misuse of this provision often leads to costly claims, staying informed through reliable legal analyses is essential. Readers interested in related employment topics can explore additional in-depth legal articles available on this platform, which cover key aspects of Saudi labor regulations and practical guidance for employers and employees alike. A clear understanding of how Article 80 interacts with other termination provisions is essential, particularly when viewed within the broader structure of Saudi labor law.
