EOSB After Misconduct Termination — UAE Article 44 & KSA Article 80
UAE Article 44: Grounds for Dismissal Without Notice
Article 44 of UAE Federal Decree Law No. 33 of 2021 lists the grounds on which an employer may dismiss an employee without notice. These include:
- Assuming a false identity or submitting forged documents
- Committing an error causing substantial material loss to the employer (employer must report to MoHRE within 7 working days)
- Violating workplace safety instructions (must be in writing and posted prominently)
- Failing to perform basic duties despite a written warning and two written investigations
- Revealing work secrets
- Being found drunk or under the influence of drugs during working hours
- Assaulting the employer, manager, or co-workers during work
- Being absent without valid reason for more than 20 intermittent days, or 7 consecutive days, in a year
- Being sentenced for a crime of dishonour, dishonesty, or public morals
Critical point: Being dismissed under Article 44 does not automatically mean you lose your EOSB. The gratuity forfeiture rules are separate from the dismissal grounds.
UAE: EOSB Is Forfeited ONLY in Specific Circumstances
Under UAE law, EOSB gratuity is forfeited only when the employee is dismissed for assaulting the employer or co-workers or for certain serious offences specified in the law. Not every Article 44 dismissal results in EOSB forfeiture.
In practice, this means:
- Dismissed for poor performance? You are still owed EOSB
- Dismissed for absenteeism? You are still owed EOSB
- Dismissed for a workplace error? You are still owed EOSB
- Dismissed for assault on employer/colleagues? EOSB may be forfeited
The employer cannot simply label a dismissal as "misconduct" to avoid paying EOSB. The burden of proof is on the employer to demonstrate the specific grounds that trigger forfeiture.
If you believe your employer is wrongfully withholding EOSB after an Article 44 dismissal, you have the right to challenge this through MoHRE and the labour court.
KSA Article 80: Misconduct Grounds Where ESB CAN Be Forfeited
Article 80 of the Saudi Labour Law sets out the circumstances in which an employer may terminate an employee without notice, compensation, or End of Service Benefits. This is more expansive than the UAE equivalent.
Under Article 80, ESB can be forfeited if the employee:
- Assaults the employer, manager, or co-workers during work or because of work
- Fails to perform essential obligations under the employment contract or fails to obey legitimate orders despite written warnings
- Is proven to have engaged in dishonourable conduct or dishonesty
- Deliberately causes material damage to the employer's property (employer must report within 24 hours)
- Commits forgery to obtain the job
- Is hired on probation and dismissed during probation
- Is absent without valid reason for more than 30 days in a year or 15 consecutive days (employer must give written warning after 20 intermittent days or 10 consecutive days)
- Exploits their position for personal gain
- Reveals trade or industrial secrets
- Violates workplace safety rules (instructions must be written and posted)
KSA Article 80 — Understanding the Grounds
Not all misconduct is equal under Article 80. The key distinction is between grounds that require prior written warnings and those that allow immediate termination.
Immediate termination (no prior warning needed):
- Assault on employer, manager, or colleagues
- Dishonesty or dishonourable conduct
- Forgery
- Deliberate damage to employer property
- Revealing trade secrets
Termination after written warning required:
- Failure to perform essential duties
- Disobeying legitimate orders
- Excessive absenteeism (must give warning at thresholds)
- Safety violations
If the employer did not follow the required warning process, the Article 80 termination may be considered invalid, and you would be entitled to full ESB plus potential compensation for wrongful termination.
Employer Must Follow Due Process — Burden of Proof Is on the Employer
In both UAE and KSA, the employer bears the burden of proof when terminating for misconduct. This means:
- The employer must have documented evidence of the misconduct
- Where required, the employer must have issued prior written warnings
- The employer must have conducted a proper investigation
- The dismissal must be reported to MoHRE (UAE) within the specified timeframes
- In KSA, deliberate damage must be reported within 24 hours
If the employer cannot prove the misconduct to the satisfaction of MoHRE or the labour court, the termination is treated as unfair dismissal — and you are entitled to full EOSB/ESB plus potential additional compensation.
Key evidence to request from your employer: The written warning letters, investigation reports, witness statements, CCTV footage, and the formal termination letter with specific Article 44 or Article 80 grounds cited.
Wrongfully Terminated for Misconduct? Full EOSB Owed + Compensation
If the labour court determines that your misconduct termination was unjustified or the employer failed to follow due process, you are entitled to:
UAE:
- Full EOSB gratuity (per Article 51)
- Compensation for arbitrary dismissal — up to 3 months' gross salary
- Notice period compensation (if no notice was given)
- Unused annual leave payout
- Repatriation ticket
KSA:
- Full ESB (per Article 84)
- Compensation for unfair dismissal — amount determined by the court
- Notice period wages (if no notice was given)
- Outstanding salary and leave entitlements
Wrongful termination claims have a high success rate when the employer cannot produce documentation. Many employers use "misconduct" as a label to avoid EOSB payments without having genuine grounds.
How to Challenge a Misconduct Termination
If you believe you were wrongfully terminated for misconduct, follow these steps:
- Request the termination letter — it must state the specific Article 44 (UAE) or Article 80 (KSA) ground. If the employer cannot cite a specific ground, the termination is likely invalid.
- Gather your evidence — employment contract, payslips, performance reviews, any communication showing good standing, and your EOSB calculation (use our UAE or KSA Calculator)
- Send a written demand — request full EOSB payment within the statutory deadline. Our Letter Generator can create this letter.
- File a complaint:
- UAE: File with MoHRE via mohre.gov.ae or the MoHRE app (free for employees)
- KSA: File with HRSD via musaned.com.sa
- Labour court — if mediation fails, the case is referred to court. In the UAE, labour court is free for employees. Consider legal representation for misconduct disputes as the employer will typically have a lawyer.
Time limit: In the UAE, you must file within 1 year of the date your entitlement was due. In KSA, the limitation period is 12 months from the end of employment. Do not delay.
Frequently Asked Questions
Do I lose my EOSB if I am fired for misconduct in the UAE?
Not necessarily. Being dismissed under Article 44 does not automatically forfeit your EOSB. Gratuity is only forfeited in specific circumstances, such as assault on the employer or co-workers. For most Article 44 grounds — including poor performance, absenteeism, or workplace errors — you are still owed your full EOSB.
Does Article 80 termination in KSA always mean I lose ESB?
Article 80 of the Saudi Labour Law allows the employer to terminate without paying ESB, but the employer must prove the misconduct and follow due process. If the employer cannot provide evidence or did not issue required warnings, the termination may be ruled unjustified, and you would be owed full ESB plus compensation.
Can my employer just call it 'misconduct' to avoid paying EOSB?
They can try, but the burden of proof is on the employer. They must cite a specific Article 44 (UAE) or Article 80 (KSA) ground, provide documented evidence, and show they followed due process. Unsubstantiated misconduct claims are frequently overturned by MoHRE and the labour courts.
How long do I have to challenge a misconduct termination?
In the UAE, you have 1 year from the date your entitlement was due to file a complaint with MoHRE. In KSA, the limitation period is 12 months from the end of employment. Act promptly — delays weaken your case.
Should I hire a lawyer for a misconduct termination dispute?
It is recommended, especially in KSA where Article 80 disputes can be complex. In the UAE, labour court is free for employees and you can represent yourself, but legal representation improves outcomes. Many labour lawyers offer free initial consultations.