Saudi Labor Law: the essentials for employers

Contracts

• Every employment contract is documented on Qiwa. A contract outside Qiwa is hard to rely on in a dispute.
• Contracts for expatriate employees are usually fixed-term; contracts for Saudi employees can be fixed-term or open-ended.
• The contract sets the wage, allowances, job, place of work and duration. Arabic is the governing language where there is a translation.
• Internal work regulations, approved under the Law, set out discipline, working hours and policies.

Probation

• Probation must be agreed in writing in the contract.
• Since the 2025 amendments, it can last up to 180 days.
• Either side can end the contract during probation, unless the contract gives only one side that right.

Working hours

• Up to eight hours a day or 48 hours a week.
• During Ramadan, up to six hours a day or 36 hours a week for Muslim employees.
• Overtime is paid at the hourly wage plus 50% of the basic wage, or, with the employee’s agreement, given as time off instead.
• At least one paid day of rest each week, normally Friday.

Leave

• Annual leave of at least 21 days a year, rising to 30 days after five years with the same employer.
• Official holidays for Eid al-Fitr, Eid al-Adha, Saudi National Day and Founding Day.
• Sick leave each year: 30 days at full pay, then 60 days at 75%, then 30 days unpaid.
• Maternity leave of 12 weeks on full pay, and three days of paternity leave.

Ending a contract

• Open-ended contracts need written notice: 60 days from the employer, 30 days from the employee, for monthly-paid staff.
• A resignation is treated as accepted if the employer does not reply within 30 days; the employer can defer it by up to 60 days, with written reasons.
• Ending a contract without a valid reason can lead to compensation on top of the end-of-service award.
• Final settlements must be paid within the period the Law sets after the contract ends.
• Disputes go first to amicable settlement through the Ministry, then to the labour courts.

How we run it

We draft contracts and internal regulations that follow the current Law, document them on Qiwa, and handle the day-to-day questions on leave, overtime and endings before they become disputes.