Article 81 of Saudi Labor Law: Complete Resignation Guide

Can you resign without notice in Saudi Arabia and still get your end-of-service benefits? Yes — but only under specific conditions outlined in Article 81 of the Saudi Labor Law. This guide explains exactly when expats can legally resign without serving a notice period and what it means for your GOSI, final settlement, and Iqama transfer.

What is Article 81 of Saudi Labor Law?

Article 81 of the Saudi Labor Law is one of the most important protections for expats working in Saudi Arabia. It allows employees to resign immediately without notice and still claim full end-of-service benefits (ESB) if their employer violates specific contractual or legal obligations.

This article is the legal counterpart to Article 80, which gives employers the right to terminate employees without benefits under certain conditions. Together, they balance the employment relationship under Saudi law.

Why Article 81 Matters for Expats in Saudi Arabia

Many expats in Saudi Arabia are unaware that they have legal protection if their employer:

• Fails to pay salaries on time
• Doesn’t provide or renew their Iqama
• Forces them to do work not listed in their contract
• Creates unsafe or abusive working conditions

Understanding Article 81 is critical because resigning the wrong way can cost you thousands of riyals in end-of-service benefits and make it nearly impossible to transfer your sponsorship.

The 7 Legal Scenarios Under Article 81 of Saudi Labor Law

Below are the seven official grounds under which an employee in Saudi Arabia can resign without notice and still receive full benefits. Each scenario is backed by real expat experience and practical examples.

Article 81(1): Employer Fails to Fulfill Contractual or Legal Obligations

What it means:
If your employer does not meet their primary obligations under your employment contract or Saudi Labor Law, you can resign immediately without notice.

Common examples based on expat experience in KSA:

• Salary delays: Your employer consistently fails to pay your salary on time via WPS (Wage Protection System).
• Iqama not provided or renewed: Your employer refuses to issue or renew your Iqama, leaving you in violation of residency laws.
• Housing or transportation not provided: If your contract guarantees housing or transport and the employer fails to deliver, this violates Article 81(1).
• GOSI registration denied: Employers must register employees with GOSI. Failure to do so is a legal violation.

What you can do:

• You can resign without notice.
• You are entitled to full end-of-service benefits.
• You can transfer your Iqama sponsorship without your current employer’s (Kafeel’s) permission through Absher or Qiwa, as the employer is considered in violation.

Pro tip from Saudi expat experience:
Always document salary delays. Take screenshots of your bank statements and Absher/Mudad records showing late or missing WPS payments. This evidence is critical if you file a labor dispute with the Ministry of Human Resources and Social Development (MHRSD).

Article 81(2): Fraud by Employer Regarding Work Conditions

What it means:
If your employer deceived you about the job role, salary, benefits, or working conditions during the hiring process, you can resign without notice — especially during the probation period.

Real expat scenarios in Saudi Arabia:

• You were promised a manager position but were assigned as a junior clerk.
• Your contract stated a salary of SAR 8,000, but you’re only receiving SAR 5,000.
• You were told you’d work in Riyadh, but you’re forced to relocate to a remote site in Tabuk or Jazan.
• Benefits like annual tickets, housing allowance, or medical insurance were promised but never provided.

What you can do:

• Resign immediately under Article 81(2).
• Claim full end-of-service benefits.
• File a complaint with MHRSD if the employer refuses to settle.

Important note:
The probation period in Saudi Arabia is typically 90 days (extendable to 180 days by mutual agreement). Article 81(2) is especially powerful during this period, as it protects new expats from employer fraud.

Article 81(3): Employer Assigns Work Different from Contract

What it means:
Your employer cannot force you to perform work that is materially different from your agreed job description or Iqama profession.

Example:
You were hired as an accountant, but your employer suddenly asks you to work as a security guard or driver. This is a clear violation of Article 81(3).

Legal exception — Article 60:
Employers can assign you to a substantially different task for up to 30 days per year under Article 60 of Saudi Labor Law. However, this must be temporary and documented.

Iqama profession rule — Article 38:
Under Article 38 of Saudi Labor Law, expats in Saudi Arabia cannot work in a profession different from what is listed on their Iqama. For example:

• If your Iqama says “Engineer,” you cannot legally work as a “Sales Manager.”
• Violating this rule can result in fines or deportation.

What you can do:

• Refuse the new assignment politely but firmly.
• If the employer insists, resign under Article 81(3) without notice.
• Report the violation to MHRSD or Jawazat (Passport Directorate).

Article 81(4): Violence or Immoral Acts by Employer

What it means:
If your employer or any of their representatives (managers, supervisors, HR staff) commit physical violence or immoral acts against you or your family, you can resign immediately.

Examples based on real expat cases in Saudi Arabia:

• Physical assault or threats in the workplace.
• Sexual harassment or inappropriate behavior.
• Threats or harm directed at your spouse or children.

What you can do:

• Resign immediately under Article 81(4).
• File a police report at the nearest police station.
• Submit a formal complaint to MHRSD.
• If applicable, report harassment cases to the Ministry of Interior or National Anti-Corruption Commission (Nazaha).

Critical advice for expats:
Violence or harassment is taken seriously in Saudi Arabia. Do not hesitate to report such incidents. The law protects you, and you have the right to leave immediately without financial penalty.

Article 81(5): Cruelty, Injustice, or Insult by Employer

What it means:
If your employer or their representatives treat you with cruelty, injustice, or insult, you can resign without notice.

What qualifies as cruelty or injustice in Saudi workplaces:

• Verbal abuse, yelling, or public humiliation.
• Discriminatory treatment based on nationality, race, or religion.
• Withholding rightful benefits or manipulating contracts.
• Creating a hostile or toxic work environment.

Expat experience in KSA:
Many expats report feeling trapped in abusive workplaces because they fear losing their Iqama or benefits. Article 81(5) exists precisely to protect workers from such treatment.

What you can do:

• Document incidents (emails, messages, witness statements).
• Resign under Article 81(5) without notice.
• File a labor complaint with MHRSD.

Article 81(6): Serious Health or Safety Hazards at Workplace

What it means:
If your workplace poses a serious health or safety risk and your employer refuses to fix it despite repeated complaints, you can resign immediately.

Common examples in Saudi Arabia:

• Construction sites without proper safety equipment (helmets, harnesses).
• Factories with hazardous chemicals and no protective gear.
• Offices with poor ventilation, extreme heat, or electrical hazards.
• Employers ignoring Civil Defense safety regulations.

What you must do before resigning:

• Submit written complaints to your employer (email or official letter).
• Request improvements and document their response (or lack thereof).
• If no action is taken, you can resign under Article 81(6).

Pro tip:
You can also report unsafe workplaces to Saudi Civil Defense or the Ministry of Municipal and Rural Affairs. These agencies conduct inspections and can enforce compliance.

Article 81(7): Employer Forces Resignation Through Unfair Treatment

What it means:
If your employer creates unbearable conditions to force you to resign (so they avoid paying benefits), you can resign under Article 81(7) and still claim full compensation.

Real expat examples in Saudi Arabia:

• Employer suddenly transfers you to a remote site office in a different city without consultation.
• Employer reduces your salary, removes benefits, or changes your role to make you quit.
• Employer creates impossible performance targets to justify firing you.

What this protects you from:
Employers sometimes use “constructive dismissal” tactics to avoid paying end-of-service benefits. Article 81(7) ensures you’re protected even if you technically “resign.”

What you can do:

• Document all changes (emails, memos, contract amendments).
• Resign under Article 81(7).
• File a labor dispute with MHRSD to claim wrongful termination.

How to Resign Under Article 81: Step-by-Step Process

Understanding your end-of-service benefits: Many expats in Saudi Arabia are unsure how their final settlement is calculated. Your end-of-service gratuity depends on your total years of service, basic salary, and reason for leaving. Under Article 81, you’re entitled to the full amount—even without serving notice. To calculate exactly what you’re owed and understand the payment timeline, check our detailed guide: End of Service Benefits in Saudi Arabia: Complete Calculation Guide.

Step 1: Write a Formal Resignation Letter

Your resignation letter must clearly state:

• The specific Article 81 clause you’re invoking (e.g., Article 81(1), 81(4)).
• The reason for resignation (salary delays, fraud, unsafe conditions, etc.).
• Your request for full end-of-service benefits.

Sample resignation template:

Date: [Insert Date]
To: [Employer Name/HR Department]

Subject: Resignation Under Article 81(X) of Saudi Labor Law

Dear Sir/Madam,

I hereby resign from my position as [Your Job Title] effective immediately under Article 81(X) of the Saudi Labor Law.

The reason for my resignation is [state specific violation, e.g., "repeated failure to pay salary on time as per WPS records"].

As per Saudi Labor Law, I am entitled to full end-of-service benefits. I request settlement of all dues within the legally mandated timeframe.

Sincerely,  
[Your Name]  
[Iqama Number]

Step 2: Submit Resignation via Official Channels

• Hand-deliver or email your resignation to HR and your direct manager.
• Keep a copy for your records.
• If possible, send via registered mail or Absher Inquiry System for proof of submission.

Step 3: File a Labor Dispute if Employer Refuses

If your employer:

• Refuses to accept your resignation,
• Withholds end-of-service benefits, or
• Blocks your Iqama transfer,

File a complaint with MHRSD immediately:

1. Go to https://hrsd.gov.sa or use the MHRSD mobile app.
2. Select “Labor Disputes” (Manazaat).
3. Submit your case with supporting documents (contract, resignation letter, proof of violation).

Timeline:
MHRSD typically schedules a hearing within 2–4 weeks. Most cases are resolved within 1–2 months.

FAQs: Article 81 of Saudi Labor Law

Conclusion: Know Your Rights Under Article 81

Article 81 of the Saudi Labor Law is a powerful protection for expats working in Saudi Arabia. Whether you’re facing salary delays, unsafe conditions, or employer fraud, you have the legal right to resign immediately and claim your full benefits.