Unlawful Termination in Saudi Arabia: How to Handle It and Claim Compensation

2025-09-14
Unlawful Termination in Saudi Arabia: Employee Rights and Compensation under Labor Law

Introduction

Unlawful termination, commonly referred to as unfair dismissal, is a complex legal issue that directly impacts an employee’s financial stability and career in Saudi Arabia. With the ongoing development of labor laws in the Kingdom, it is crucial to understand the rights and obligations of both employees and employers to avoid such situations. Saudi labor law provides clear and structured mechanisms to protect workers and ensure justice.

What is Unlawful Termination?

In Saudi Arabia, unlawful termination occurs when an employer terminates an employee’s contract in violation of the Saudi Labor Law, without valid legal justification. Such actions are considered a breach of the principles of fairness, human rights, and labor protection.

Common examples of unlawful termination include:

1. Termination Based on Discrimination
If an employee is terminated due to race, gender, or religion, it constitutes a clear violation of labor and human rights principles. Such discrimination is illegal under Saudi labor law.

2. Termination Due to Pregnancy or Sick Leave
Women who are dismissed because of pregnancy or medical leave face a discriminatory and unlawful termination, violating their rights to maternity protection.

3. Retaliatory Termination After Reporting Violations

Employees who report illegal or unethical practices at work should be protected as whistleblowers. Firing them in retaliation is considered unlawful.

4. Termination for Refusing Unsafe or Unfair Work Conditions
Employees have the right to refuse work that jeopardizes their safety or dignity. Termination in such cases is unlawful under labor regulations.

Saudi labor law and labor courts provide employees the right to file complaints and claim compensation if subjected to these violations.

Compensation for Unlawful Termination

If an employee is unlawfully dismissed in Saudi Arabia, the compensation depends on the type of employment contract:

  • Fixed-term contract: The employee is entitled to wages for the remaining contract period.


  • Indefinite contract: The employer must pay compensation equal to 15 days’ wages for each year of service.


In all cases, compensation cannot be less than two months’ wages.


Additional Rights

Employees may also claim compensation for benefits such as housing allowance, transportation, and medical coverage. Complaints can be submitted to the Ministry of Human Resources, which investigates the claim. If the violation is confirmed, the employer must compensate the employee. Alternatively, employees can file a case in the labor court for enforcement.

How to Prove Unlawful Termination

To establish a case of unlawful termination, employees should:

  1. Collect Evidence
    • Employment contract: Proves agreed terms and obligations.
    • Termination letter: Can reveal unjustified reasons.
    • Emails or written communication: Shows employer’s intent or unlawful grounds.


  2. Witness Testimonies

    • Colleagues or former managers can confirm that the termination lacked justification.

  3. Performance Records

    • Good performance reviews or recent promotions help demonstrate wrongful dismissal.

Note:
Article 75 of the Saudi Labor Law requires the employer to give a 60-day notice for monthly wage earners or 30 days for others. Failure to provide notice strengthens the employee’s claim.

What to Do If You Are Unlawfully Terminated

If you believe you were dismissed unfairly:

  1. File a Complaint

    • Submit your claim to the Labor Office or directly to the Labor Court within 12 months of termination.

  2. Prepare Evidence

    • Collect all documents, witness statements, and any proof of unjustified dismissal.
  3. Seek Legal Support

    • Consulting an experienced labor lawyer can increase your chances of securing fair compensation.

FAQ

1.Which authority handles unlawful termination cases in Saudi Arabia?

  • Private sector: Labor Office and Labor Court.
  • Public sector: Board of Grievances (Administrative Court).

2.When can an employer legally terminate an employee under Article 80 of Saudi Labor Law?
 Permitted cases include:

  • Assault on employer
  • Repeated misconduct
  • Intentional damage to company property
  • Unauthorized disclosure of trade secrets
  • Absenteeism without valid reason
  • Submitting forged documents

3. What is considered unlawful termination?
 Unlawful termination occurs when an employer ends an employment contract without valid legal justification, violating Saudi Labor Law. Examples include termination based on discrimination, pregnancy, medical leave, whistleblowing, or unsafe work conditions.

4. What compensation am I entitled to?

  • Fixed-term contract: Compensation equals wages for the remaining contract period.
  • Indefinite contract: Compensation is 15 days’ wages per year of service, with a minimum of two months’ wages.
  • Additional benefits: Housing allowance, transportation, medical coverage, and end-of-service benefits may also apply.

5. How do I prove unlawful termination?

  • Collect your employment contract, termination letter, emails, or internal correspondence.
  • Gather witness testimonies and performance records.
  • Ensure notice periods were respected as per Article 75 (60 days for monthly-paid employees, 30 days for others).

6. What should I do immediately after being terminated unfairly?

  • File a complaint with the Labor Office or Labor Court within 12 months.
  • Prepare all evidence and documentation.
  • Consult a labor lawyer for professional guidance.

7. Which authority handles unlawful termination cases?

  • Private sector: Ministry of Human Resources (Labor Office) and Labor Court.
  • Public sector: Board of Grievances (Administrative Court).

8. Are there cases where termination is allowed without compensation?
 Yes, according to Article 80 of the Saudi Labor Law, including:

  • Employee assaulting the employer.
  • Forging documents.
  • Absenteeism without valid reason.
  • Unauthorized disclosure of trade secrets.

9.How can SNDK help employees?

  • Legal consultation and case evaluation.
  • Assistance in preparing evidence and claims.
  • Representation before labor authorities to secure maximum compensation.


Take Action if You Were Unlawfully Terminated

If you have been a victim of unlawful termination in Saudi Arabia, SNDK can help you protect your rights and claim fair compensation. Our team of labor law experts will:

  • Provide accurate legal advice.
  • Prepare a complete case file with all necessary evidence.
  • Represent you before labor courts and authorities.


Click here to consult an expert lawyer and secure your rights