9 Specific Cases for Deprivation of EOSB (Saudi Labor Law Article 80)

The End-of-Service Benefit (EOSB) is a fundamental right under the Saudi Labor Law (SLL). However, Article 80 provides the exclusive legal foundation allowing an employer to terminate a worker without EOSB, advance notice, or indemnity.
This legal mechanism - often referred to as EOSB deprivation or forfeiture - applies only in specific, serious cases of employee misconduct or breach of contractual duty. Article 80 lists nine exclusive cases where this summary dismissal is permitted.

The Crucial Procedural Requirement: The Right to State a Defense

Before invoking any of the clauses under Article 80, the employer must fulfill a mandatory procedural requirement:

The worker must be informed of the allegations in writing and given a chance to state their defense.

Key Procedural Safeguard:

• This ensures the termination is not arbitrary.
• If the employer fails to allow the worker to respond, the dismissal may be invalid, even if the alleged misconduct is severe.
• The defense opportunity must be genuine and documented to avoid legal nullification of the termination.

The Nine Specific Grounds for EOSB Deprivation (Article 80)

Termination without EOSB, advance notice, or indemnity is restricted to the following nine exclusive cases:

1. Assault on Management or Superiors (Clause 1)

Termination is justified if the worker assaults the employer, a responsible manager, superior, or subordinate during or by reason of work.
This includes physical aggression or severe acts of violence that compromise workplace safety or discipline.

2. Failure to Perform Essential Obligations or Disobeying Lawful Orders (Clause 2)

Covers failure to fulfill essential contractual duties, disobedience of legitimate orders, or deliberate disregard of safety instructions.
To invoke this clause:

• The employer must prove a written warning was previously issued regarding the violation.

3. Misconduct or Acts Infringing on Honour or Integrity (Clause 3)

Applies when it is proven that the worker has engaged in immoral, indecent, or criminal conduct that violates honour or integrity during or because of work.

4. Intentional Material Loss to the Employer (Clause 4)

Covers cases where a worker intentionally causes financial damage to the employer.
Time-Sensitive Condition: The employer must report the incident to the authorities within 24 hours of becoming aware of it.
Failure to do so voids the right to use this clause as a basis for EOSB deprivation.

5. Obtaining Employment through Forgery (Clause 5)

If it is proven that the worker used falsified documents or misrepresented facts to secure employment, the employer may terminate the contract immediately without EOSB.

6. Termination During Probation (Clause 6)

If a worker is terminated during the probationary period (which cannot exceed 180 days), they are not entitled to EOSB or notice.
The probation period allows both parties to assess the employment relationship without long-term obligations.

7. Excessive Unjustified Absence (Clause 7)

Covers repeated or prolonged unexcused absenteeism:

• Intermittent Absence: More than 30 days in a contractual year.
• Consecutive Absence: More than 15 consecutive days without legitimate reason.

Strict Warning Requirement:
Before termination:

• A written warning must be issued after 20 days of intermittent absence or after 10 days of continuous absence.

👉 Detailed Guide: EOSB Loss Due to Unjustified Absence →

8. Unlawful Exploitation of Position for Personal Gain (Clause 8)

Applies when a worker abuses their position or authority to secure personal benefit or advantage, such as bribery or conflict of interest.

9. Disclosure of Work Secrets (Clause 9)

Termination is justified if it is proven that the worker disclosed industrial or commercial secrets that could damage the employer’s interests or reputation.

Conclusion: Invalid Termination Consequences

If a termination occurs outside the nine grounds listed in Article 80, or if the employer fails to follow due process (such as denying the worker’s defense opportunity), the termination is deemed unlawful.

Legal Consequences of Invalid Termination:

• The employer must pay:
  • Compensation (not less than two months’ wages).
  • Full EOSB for the entire service period.
• The worker also retains rights to wages, leave pay, and any other accrued entitlements.

👉 Read the Full Legal Guide on EOSB Exclusion and Unlawful Termination →

Any unresolved disputes or questions must be formally directed to the relevant Saudi authorities for official clarification and binding decisions.