Termination of the contract
Article 81 of the Saudi Labour Law:leaving the job with full entitlements
Article 81 is the employee's counterpart to Article 80. It lists seven cases in which an employee can leave without notice and lose nothing, including when the employer's conduct pushed them into appearing to end the contract themselves.
- Article 81
- Explanatory guidance
Article 80 protects the employer when the employee fails in their obligations. Article 81 protects the employee when the employer does. The employee can leave at once, without notice, and keep all statutory entitlements, including the full end-of-service gratuity instead of the resignation scale.
The last paragraph has the widest effect. If the employer's conduct, especially unfair treatment or breach of the contract terms, pushes the employee into appearing to end the contract, the law looks at what actually happened and not at what the exit was called.
The text of the article
A worker may leave work without notice while retaining all statutory entitlements, in any of the following cases:
- 01The employer fails to meet essential contractual or statutory obligations towards the worker.
- 02The employer or its representative practised deception at the time of contracting as to the terms and conditions of work.
- 03The employer assigns the worker, without consent, to work materially different from the agreed work, contrary to Article 60.
- 04A violent assault or an indecent act by the employer, a family member of the employer, or the responsible manager, against the worker or a member of their family.
- 05Treatment by the employer or the responsible manager marked by cruelty, injustice or insult.
- 06A serious hazard at the workplace threatening the worker's safety or health, where the employer knew of it and took no step showing its removal.
- 07Where the employer or its representative, by their conduct and in particular by unfair treatment or breach of contract terms, drove the worker to appear to be the party who ended the contract.
Status of the text: This article has not been amended; the text below is the original operative text.
The official reference is the Arabic text published by the Bureau of Experts at the Council of Ministers.
The English above is a working translation.
The financial effect: full gratuity
An ordinary resignation follows the sliding scale in Article 85: nothing before two years, a third between two and five, two thirds between five and ten, and the full amount at ten years or more. An employee who leaves under Article 81 keeps all statutory entitlements, so the gratuity is paid in full whatever the length of service.
Late wages breach an essential obligation
Paragraph 1 covers essential obligations, and paying the wage is the most obvious one. Repeated late payment, underpayment or withholding established entitlements all fall under it. For the employer, paying salaries on time is a legal obligation.
Reassignment is limited by Article 60
Article 60 allows an employer to assign materially different work only when necessary, for a limited period, and without affecting the employee's rights. A permanent reassignment without written consent falls under paragraph 3.
What an employee needs to prove the case
- Evidence from the time: statements showing late wages, correspondence about the changed duties, or a safety report.
- A written objection sent before leaving, so the employer cannot argue the employee accepted the situation.
- A copy of the contract and the work regulations, showing which obligation was breached.
- A complaint through the ministry's official channels before taking the dispute further.
Common mistakes
Leaving first and documenting later
The case is proved by what happened before the departure, so evidence gathered afterwards is weaker.
Confusing resignation with Article 81
A plain resignation falls under the Article 85 scale. An employee leaving under Article 81 should say so clearly.
Assuming a complaint is enough
The labour court judges the case on the facts. Records made at the time are what decide it.
How Barez applies this article
A clear payroll record
In Barez, wages are paid from an approved payroll run with a date and a history. The wage-protection file is generated from the same run.
Every request is on record
The employee's request, any objection and the manager's approval are all recorded with timestamps, so nothing depends on a private chat.
Contract and annexes on file
The contract, job description and work regulations are kept in the employee file, so both sides can check them if the scope of work is disputed.
Sources
This page is explanatory guidance, not legal advice. In a dispute, rely on the official text and consult the Ministry of Human Resources and Social Development or a licensed lawyer.
Article 81
Frequently asked questions
Does a worker leaving under Article 81 receive full gratuity?
Yes. The employee keeps all statutory entitlements. The resignation scale in Article 85 does not apply, and the gratuity is paid in full for the whole period of service.
Is one month of late salary enough to leave?
Late payment breaches an essential obligation, and the labour court decides how serious it is. Repeated delays or a refusal to pay are easier to prove than a single late month. It is safer to object in writing first.
What if the employer pressures an employee to resign?
Paragraph 7 of Article 81 covers this. If the employer's conduct pushed the employee into appearing to end the contract, the case falls under Article 81 and the employee keeps their entitlements.
Labour law articles
Continue from here
Article 80: dismissal without gratuity
The same rule from the employer's side.
Article 74: how a contract ends
Where leaving fits among the legal grounds for ending a contract.
Resignation versus dismissal
How each route changes the settlement.
Article 77: unlawful termination pay
What the employee is owed when termination is unlawful.
Article 74 of the Saudi Labour Law: when an employment contract ends
Article 74 lists every ground on which an employment contract ends, including resignation and bankruptcy rulings, both added in 1446H. The ground decides what the employee is owed, so settle it first.
Article 77Article 77 of the Saudi Labour Law: compensation for unlawful termination
Article 77 sets a fixed formula for compensation: fifteen days' wage per year of service on an indefinite contract, or the wage for the remaining term on a fixed one, and never less than two months' wage.
Article 80Article 80 of the Saudi Labour Law: nine cases for dismissal without gratuity
Article 80 is a narrow exception to employee protection. It lists nine cases that allow termination without gratuity, notice or compensation. In every case, the employee must first be given the chance to object.
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