The Saudi Labor Law governs the relationship between employees and employers in the private sector, for Saudis and expatriates alike. It covers the employment contract and probation, working hours, leave and wages, and the end of employment and the end-of-service award. The law dates from 1426H and has been amended several times, most recently by amendments in force since 2025.
This guide sets out the main rights of employees in plain English. It is general information; how the law applies to you depends on your contract and circumstances.
Who the Labor Law covers
It applies to employment contracts in the private sector, whatever the employee's nationality. Government employees under civil-service and military rules, and domestic workers, who have their own regulation, are among the groups excluded.
The employment contract and probation
- Written and documented: the contract is written in two copies and documented online on the Qiwa platform. Without a written contract, the employee may prove the relationship and their rights by any means of proof.
- Fixed-term or open-ended: each type has its own rules on termination.
- Probation: up to ninety days, extendable by written agreement to a maximum of one hundred and eighty days. Eid holidays and sick leave do not count towards it.
Working hours and overtime
- Actual working hours may not exceed eight hours a day on a daily basis, or forty-eight hours a week on a weekly basis.
- During Ramadan, hours for Muslim employees are reduced to six a day or thirty-six a week.
- Employees are entitled to a paid weekly rest day.
- Overtime is paid at the hourly wage plus 50% of the basic wage.
Wages
Wages must be paid on time. Deductions are allowed only in cases the law sets, such as loan repayments, social insurance contributions or lawful penalties, and within limits. Payment is monitored through the Wage Protection System.
Leave
- Annual leave: twenty-one paid days, rising to thirty days after five consecutive years with the same employer.
- Sick leave: with an approved medical certificate, in each year: thirty days on full pay, sixty days on three-quarters pay, and thirty days unpaid.
- Occasion leave: paid leave for marriage, the death of a relative and the birth of a child, for periods set by the law.
- Maternity leave: paid maternity leave for the period the law sets, plus nursing breaks.
- Unused leave: if employment ends before annual leave is used, the remaining days are paid.
End of employment and the end-of-service award
When employment ends, the employee is entitled to an end-of-service award: half a month's wage for each of the first five years and a full month's wage for each year after that, based on the last wage. If the employee resigns, the entitlement depends on length of service:
- Less than two years: no award.
- Two to less than five years: one third of the award.
- Five to less than ten years: two thirds.
- Ten years or more: the full award.
There are exceptions, including when an employee leaves because the employer breached its obligations. The award applies to expatriate employees as well.
Dismissal and compensation
If the employer ends the contract without a valid reason, the employee is entitled to compensation. Unless the contract sets an amount, Article 77 grants fifteen days' wage for each year of service under an open-ended contract, or the wages for the remaining term of a fixed-term contract, and in either case not less than two months' wage.
The law also lists cases where the employer may end the contract without award, notice or compensation, such as assault, serious breach of obligations or unjustified absence for set periods after a warning, and cases where the employee may leave without notice and keep all rights, such as the employer's failure to meet its essential obligations.
Notice period
Under an open-ended contract, the party ending it must give written notice for a period set by the law and the contract; the recent amendments set different periods for notice by the employee and by the employer. A party that does not give notice owes the other the wages for the notice period or what remains of it.
How to claim your rights
- Collect your documents: contract, proof of salary, termination or resignation letter and correspondence.
- Amicable settlement: the claim is filed first on the Ministry of Human Resources «Wadi» platform.
- Labor court: if settlement fails, the case goes to the labor court.
- Mind the deadline: labor claims are not heard after twelve months from the end of employment.
Frequently asked questions
Can my employer extend probation without my agreement?
No. An extension needs written agreement and may not exceed one hundred and eighty days in total.
Do I get an end-of-service award if I resign?
Yes, after two years of service, on the graded scale above.
Does the Labor Law protect expatriates?
Yes, it applies to private-sector employees regardless of nationality.
Do I need a lawyer?
Not necessarily, but a lawyer helps you calculate what you are owed, prepares the claim in Arabic and can attend for you.
Need help with a labor dispute?
Usus Law Firm handles labor cases for employees and employers in Riyadh and Tabuk, from settlement to court and enforcement, and advises in English. Book a free consultation or call +966 53 034 9349.
This article is general legal information and is not a substitute for advice on your specific case. Contact Usus Law Firm: +966 53 034 9349.
