Saudi Labor Law: Articles 60, 75, 77, 80, and 81 explained in detail

The Saudi Labor Law is the primary legal reference regulating the relationship between employers and employees within the Kingdom. It aims to achieve a balance between the rights and responsibilities of each party. This law contains numerous articles detailing employment mechanisms, contract termination, vacations, training, and professional discipline. In this article, we highlight five important articles: Articles 60, 75, 77, 80, and 81. These articles are among the most widely discussed among employees and employers due to their direct impact on the contractual relationship.

Article 60 of the Saudi Labor Law: Respecting Instructions

Article 60 states that the employer has the right to establish instructions and regulations aimed at improving performance and maintaining order within the work environment. The employee must adhere to these instructions as long as they do not conflict with the provisions of the law or the contract. These instructions include attendance and departure times, use of work tools, general appearance, occupational safety, and compliance with administrative orders.

What distinguishes this article is that it grants the employer the authority to regulate the work environment while simultaneously protecting the employee from any arbitrary or illegal instructions. For example, fines or overtime cannot be imposed without a clear legal provision or contractual agreement.

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Article 75 of the Labor Law: Termination of Contract with Prior Notice

Article 75 stipulates that if the employment contract is of an indefinite duration, either party (the employer or the employee) may terminate it by giving the other party written notice of no less than 60 days in advance if the employee is paid monthly, and 30 days in other cases.

This article is a legal tool that ensures an orderly termination of the contractual relationship, allowing the other party the opportunity to arrange for their new position. It also protects the employee from sudden dismissal and protects the organization from unexpected resignations that could harm the workflow.

Article 77 of the Labor Law: Compensation upon Dismissal

One of the most controversial articles, Article 77 regulates the calculation of compensation due to the injured party in the event of an unlawful termination of the contract. The article stipulates that if a contract is terminated for an unlawful reason, the aggrieved party is entitled to compensation equivalent to 15 days' wages for each year of service in unlimited-term contracts, or wages for the remaining period in fixed-term contracts, in addition to any other compensation agreed upon in the contract.

This article has been amended in recent years to reduce exploitation and ensure worker protection in the event of arbitrary dismissal, while also taking into account the employer's interests.

Article 80 of the Labor Law: Dismissal without Gratuity

This article stipulates the cases in which an employer may dismiss an employee without compensation or end-of-service gratuity. The article includes 10 cases, the most prominent of which are:

Assaulting the employer or one of his/her supervisors during work.
Gross dereliction of duty.
Forgery or providing false information for the purpose of work.
Absence without a legitimate excuse for a specified period.
Exploiting the position for personal gain.

The article requires that these cases be legally proven before the termination is implemented, ensuring that the employer is not acting arbitrarily and giving the employee an opportunity to defend themselves.

Article 81 of the Labor Law: Immediate Resignation of the Worker

Article 81 corresponds to Article 80, but on the worker's side. It allows the worker to terminate the contract immediately, without notice or a notice period, while retaining all their rights, in certain cases, including:

If the employer fails to fulfill his essential obligations.

If it becomes apparent that there is a serious threat to the worker's safety.

If the employer assaults the worker.

If the worker is assigned tasks that are substantially different from those agreed upon without his consent.

This article provides the worker with legal protection and confirms that the Labor Law does not only support the employer, but also takes into account the worker's circumstances and interests.

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Amendments to the Saudi Labor Law 2025 and its Most Important Legal Articles

In 2025, the Saudi Labor Law underwent fundamental amendments aimed at improving the work environment, strengthening workers' rights, and achieving the goals of the Kingdom's Vision 2030. These amendments included updating 38 articles, repealing 7 articles, and adding 2 new articles, reflecting the Kingdom's commitment to developing the labor market and making it more flexible and fair.

1. Clearly Defining the Contractual Relationship
Written Contracts: It has become necessary for all employment contracts to be in writing, especially for non-Saudi employees, with a clear definition of the contract duration.

Resignation: The resignation process has been more clearly regulated, with employees required to provide 30 days' notice, while employers are required to provide 60 days' notice in the event of termination. 2. Strengthening Worker Rights
Leave: Leave has been expanded to include a 3-day paternity leave and a 3-day bereavement leave in the event of the death of a sibling.

Training and Qualification: Employers are now required to provide training programs to qualify and enhance the skills of Saudi workers, with targeted skills clearly defined in training contracts.

3. Improving the Work Environment
Combating Discrimination: New provisions have been introduced that prohibit discrimination in hiring or at work based on gender, nationality, or disability, promoting a fair and inclusive work environment.

Work Flexibility: Amendments have been introduced to allow greater flexibility in regulating working hours, to suit the needs of employees and employers.

Frequently Asked Questions about the Saudi Labor Law

1. Can an indefinite-term employment contract be terminated without cause?
Yes, but a prior notice period must be adhered to, as stipulated in Article 75, and the termination must not be for unlawful reasons. Otherwise, the worker is entitled to compensation, as stipulated in Article 77.

2. When is an employee entitled to immediate resignation?
He has the right to do so in the cases stipulated in Article 81, such as when his safety is threatened or he is subjected to mistreatment.

3. Is it permissible to dismiss an employee without compensation?
Yes, but only in the cases stipulated in Article 80, and the violation must be clearly proven to be legal.

4. What is the difference between a contract and a non-contract?

Articles 77 and 80?
Article 77 regulates compensation for wrongful dismissal, while Article 80 specifies the cases in which an employee is not entitled to compensation upon termination.

5. Are administrative instructions from the employer binding on the employee?
Yes, according to Article 60, as long as these instructions do not conflict with the law, the contract, or general laws.

Articles 60, 75, 77, 80, and 81 are among the most important articles of the Saudi Labor Law, as they outline the contractual relationship from beginning to end and ensure a balance between rights and duties. Understanding these articles helps employees and employers avoid disputes and ensures a transparent and fair work environment. It is always advisable to refer to the legal texts and their updates, or to consult a specialized lawyer in the event of any dispute.