Comprehensive guide: Contract termination under Article 80 of the Labor Law

The employer may terminate the contract under Article 80 of the Labor Law without being obligated to grant the worker a reward or compensation, in specific cases that are limited to this, with the aim of protecting the work environment from serious violations that the worker may commit against the employer, and ensuring the safety of the institutional entity.

However, the application of this article requires a thorough understanding of its provisions and conditions to avoid any legal violations that could have negative consequences. Despite the clarity of the article's legislative purpose, practical reality reveals two main problems: the worker's lack of awareness of their rights, leading to the possibility of unfair measures being taken against them without justification, and the exploitation of workers by some employers. Both of these situations disrupt the balance and stability of the work environment.

Based on the above, this article analyzes the legal provisions of Article 80 of the Saudi Labor Law, explaining its importance within the framework of the contractual relationship, the procedures for terminating the contract according to it, the cases in which the employer may legally apply it, as well as reviewing the worker’s rights resulting from the dismissal decision based on this article, and the role of law firms in promoting stability in the work environment in general.

Abdulaziz bin Yasser Al-Anzi Law Firm

The importance of Article 80 of the Saudi Labor Law

1. Article 80 of the Saudi Labor Law is among the basic articles that regulate the obligations of the two parties to the employment contract.
2. The article specifies the cases in which an employer may terminate the contract without giving the employee...End-of-service bonusOr compensation.
3. These cases include unethical conduct by the employee, and actions that harm the interests of the organization.
4. Its importance lies in protecting the employer and giving him a legal basis to confront employee transgressions that harm the institutional entity.
5. Preventing arbitrary dismissal and requiring a legitimate reason for it, to limit the employer's power to terminate unilaterally without justification.
6. Protecting the interests of both parties by precisely regulating the rights and obligations of each.
7. Encouraging adherence to professional and ethical conduct, and reducing negligence or deliberate harm, to promote a stable work environment.
8. Enabling the employer to act in a legally sound manner by allowing him to legally terminate the contractual relationship when the worker commits serious errors.

Contract termination mechanism under Article 80mSaudi Labor Law

The Saudi legislator, under Article 80 of the Labor Law, has permitted the employer to terminate the contractual relationship without being obligated to grant the worker an end-of-service bonus, in the cases stipulated by law.

This article represents a legal guarantee for the employer in the event of violations that harm his institution, but its application is not absolute, but is subject to controls and conditions that protect the decision from being described as arbitrary, and strip it of any suspicion of abuse of use.

Therefore, for the decision to be valid and its implementation to be sound, legal procedures must be followed, which are as follows:

First: Pre-termination procedures

1. The employer must specify the reason for termination precisely and explicitly.
2. The act attributed to the worker must fall under one of the cases stipulated in Article “80” exclusively.
3. The precise determination of the cause is a legal safeguard to prevent abuse of the right, and forms the basis of reference for the procedure.
4. It is necessary to document the violation attributed to the worker and prove its occurrence with reliable and acceptable evidence.
5. Save all documents and correspondence supporting the procedure.

Second: Investigation procedures and confronting the worker

1. The employee should be notified in writing "officially" of the violation attributed to him.
2. Conduct a legal investigation to examine the incident and investigate its elements.
3. The worker was given a real and sufficient opportunity to present his defenses and statements regarding the violation as one of the basic rights guaranteed to him.
4. Documenting the findings of the investigation in writing and officially.

Third: Issuing and implementing the termination decision

1. The decision should be formulated in an official, reasoned letter, including the established violation and its legal basis.
2. The employee is given an official copy of the termination decision along with proof of notification.

Strict adherence to these procedures is essential for the validity and legal enforceability of the decision, and it protects the employer from legal liability claims. Failure to comply with any of them renders the decision legally invalid and may therefore classify it as arbitrary dismissal warranting compensation.

When is an employer entitled to terminate a contract under Article 80 of the Labor Law?

The provisions of Article 80 of the Labor Law are usually applied when serious violations are committed that affect the entity of the establishment, the employer, the work environment and colleagues, as well as in cases of fundamental breach of contractual obligations. The article has specified nine cases as follows:

1. Proof that the worker committed a physical or verbal assault on the employer, the manager in charge, or one of the superiors or subordinates, whether this occurred during the performance of work or because of it.
2. Failure to fulfill basic contractual obligations, refusal to carry out lawful orders, or deliberate violation of officially announced occupational safety and health instructions, provided that a written warning has been issued to the worker beforehand.
3. Proof that the worker committed disgraceful conduct or an act that is incompatible with the requirements of honor and integrity.
4. If an employee commits an act or omission with the intention of causing material harm to the employer, provided that the competent authorities are notified of the incident within 24 hours of the employer becoming aware of it.
5. Proof that the worker resorted to forging documents or providing misleading information in order to obtain the job.
6. If the worker is found to be incompetent during the legally specified trial period in the employment contract.
7. If an employee is absent from work without an acceptable excuse for more than 30 non-consecutive days during the contractual year, or more than 15 consecutive days, written warnings must be issued within the legally specified timeframes: "after 20 days for intermittent absence, and 10 days for continuous absence."
8. Proof that the employee exploited his job position in illegal ways to achieve personal gains or self-interest.
9. Proof that the worker disclosed the company's industrial, commercial, or technical secrets in a way that harms its competitive interests.

The worker's rights in case of contract termination under Article 80 of the Labor Law

We previously mentioned in the explanation of Article 80 of the Labor Law that if a worker commits serious violations, his contract will be terminated without him receiving an end-of-service bonus. This does not mean that the worker is deprived of all his rights absolutely, as Saudi law guarantees his other rights, which are as follows:

Wages and salaries due

The system guarantees that the worker receives all outstanding and due wages for the actual period of work up to the date of termination of the contractual relationship, including the salary of the last month or any specific parts thereof, and guarantees their disbursement without any illegal deductions.

Settlement of the cash equivalent of vacation balance

The employee is entitled to receive financial compensation for the entire balance.Annual leaveThe accumulated benefits that he did not benefit from during his service period, according to the last actual salary he received, and based on what is stipulated in the regulations of the work system.

Obtaining a professional experience certificate

The worker is entitled to obtain an official experience certificate issued by the employer, which accurately states the date of joining the service and the date of its termination, along with a statement of the job title, the tasks assigned to him, and the level of performance, provided that it does not include any indications that may harm the worker’s reputation or limit his chances of obtaining a new job.

Retrieval of original documents and proofs

Return all personal documents, academic certificates and official documents that the employee deposited with the establishment upon contracting, in addition to handing over the original contracts or any work papers pertaining to the employee, and ensuring that he is officially released from the job responsibility.

Calculating and settling overtime pay

All overtime hours assigned to the worker outside of official working hours or during weekends and holidays are recorded, and their financial value is calculated according to the legally prescribed percentages to ensure fairness in compensation for excessive physical or mental effort.

Legal steps to follow when terminating a contract under Article 80 of the Labor Law

The legislator surrounded this article with formal and substantive guarantees due to the seriousness of its consequences. In light of what has been established in the Saudi labor judiciary, the steps that must be followed in the event of your dismissal based on Article 80 of the Labor Law can be determined as follows:

Request a copy of the dismissal decision

The worker should request from the employer a written and reasoned decision that includes the date of the incident that warranted dismissal, the reason for dismissal in detail, and the text of the legal article on which it is based.

Request to view the evidence

The worker has the right to review all documents on which the employer based the dismissal procedure, including: investigation reports, prior written warnings, absence reports, certificates and any other relevant documents.

Verifying the validity of formal and substantive procedures

It must be verified whether the employer has complied with the procedural safeguards required by Article 80, the breach of which justifies the invalidity of the dismissal decision and its being considered arbitrary.

Resorting to amicable settlement through the "Waddi" platform

If the worker believes that the dismissal is unjustified or procedurally flawed, he must - as a mandatory step before litigation - pursue the path of amicable settlement through the "Wadi" platform, where specialists undertake reconciliation between the two parties and attempt to bring viewpoints closer within a period not exceeding 21 working days from the date of the first session.

Resorting to the labor court

If an amicable settlement cannot be reached, the dispute is referred to the competent labor court, which has general jurisdiction to adjudicate disputes related to employment contracts and the rights arising therefrom. The worker can file the lawsuit directly through the "Najiz" electronic platform.

Claim for due compensation

Saudi law permits an employee to claim two types of compensation if the dismissal is proven unlawful: compensation for arbitrary dismissal and end-of-service gratuity.

Hiring a lawyer specializing in labor cases

The lawyer helps in proving the arbitrariness of the dismissal, presenting formal and substantive defenses before the judiciary, and claiming the compensation due to him at the highest estimate, which enhances the worker’s chances of obtaining a fair judgment.

It should also be noted that, in principle, the burden of proving the legitimacy of the dismissal, according to Article 80 of the Labor Law, rests with the employer. The worker is not required to prove his innocence, but rather the employer must prove the validity of what was attributed to him. Therefore, we advise the worker to hasten to document all procedures and documents related to his dismissal, and to take the path of amicable settlement, which is mandatory, and not to delay filing the lawsuit in order to avoid losing his rights.

Contact usTo learn more about the details of contract termination under Article 80 of the Saudi Labor Law, and to obtain legal advice that ensures the full protection of your rights.