Blog April 14, 2026

Title: Understanding Unlawful Termination in Saudi Labor Law

3 min read

Title: Understanding Unlawful Termination in Saudi Labor Law

Summary: Unlawful termination is a critical issue addressed under Saudi Labor Law, aimed at protecting employees from unfair dismissals. This article outlines legal explanations, eligibility conditions, compensation impacts, and the required evidence for claims relating to wrongful termination.

Legal Explanation: According to Saudi Labor Law, unlawful termination occurs when an employee is dismissed without a justifiable reason or without following due legal procedures. Article 77 provides guidance on the legal grounds and compensations applicable in cases of unlawful termination.

Eligibility Conditions: To qualify for a claim of unlawful termination, an employee must demonstrate that the termination lacked a legitimate cause as outlined in Article 80, which lists the cases where an employer may terminate without indemnity. Additionally, the dismissal procedure must adhere to the legal framework established by the Labor Law, particularly concerning notice periods and due process.

Compensation Impact: In cases of unlawful termination, employees are entitled to compensation. The compensation amount is typically outlined in the employment contract or calculated based on Article 77, which ensures the affected employee receives appropriate recompense for the premature termination of the employment relationship.

Required Evidence: To substantiate a claim of unlawful termination, employees should provide the following:

  • Employment contract details
  • Termination notice or communication from the employer
  • Any correspondence evidencing the reason for termination
  • Witness statements or additional relevant documentation

Example Scenario: An employee, Ahmed, was terminated without receiving formal notice and without a valid reason as per Article 80. He was informed verbally by his employer that his services were no longer needed. Ahmed can file a claim citing unlawful termination under Saudi Labor Law due to the lack of justification and process in his dismissal.

Claim Indicators: Employees should consider filing a claim if:

  • They were dismissed without prior notice
  • The reason for termination was not within the acceptable causes listed in Article 80
  • The dismissal procedure violated the terms of the employment contract or the provisions of the Labor Law

Call to Action: For employees facing unlawful termination, seeking legal redress can be complex. Visit SNDK.ai for guidance on how to proceed with a claim.

Sources:

  1. Saudi Labor Law
  2. Article 77 and Article 80, Saudi Labor Law

FAQ:

  1. What constitutes a justifiable reason for termination according to Saudi Labor Law?
    Any reason listed under Article 80, such as breach of duty or absenteeism without valid reasons for more than 15 consecutive days.

  2. How much notice is required for termination?
    Typically, the notice period is 30 days unless otherwise specified in the employment contract.

  3. Can an employer provide severance instead of notice?
    Yes, as per mutual agreement, severance pay can substitute the notice period provided it aligns with the labor law provisions.

  4. What if my contract specifies a different compensation than Article 77?
    The specific terms of your contract will guide compensation unless they contravene the statutory minimums set by Article 77.

  5. Where can I file a complaint for unlawful termination?
    Employees can file complaints with the Ministry of Human Resources and Social Development in Saudi Arabia.