Saudi Labor Law

2025

Saudi Arabia is experiencing significant economic growth and development across all sectors, all within a comprehensive legal framework governed by the Saudi labor law and strict governmental regulations. This system establishes the foundation for the relationship between employers and employees, protects workers’ rights, and defines the responsibilities of employers.

The Saudi labor law covers various aspects of employment in Saudi Arabia, including employment contracts, working hours, wages, termination of service, and anti-discrimination measures. Understanding these articles and clauses is crucial for both employers and employees to ensure compliance, achieve fairness, and foster a healthy and suitable work environment for everyone.

This Article Covers:

What is a Work Contract?

According to Article 50 of the Saudi labor law, a work contract is an agreement reached between an employer and an employee, whereby the employee agrees to work under the employer’s management or supervision to earn a specified wage. This contract forms the basis of the relationship between the employee and his workplace.

It is essential for the employee to understand the terms of the contract and how they align with the general rules and provisions of the labor law. Where this contract governs the contractual relationship before, during, and after employment ends.

Any terms and processes that conflict with the provisions of the Labor Law are considered void. The Labor Law ensures that the relationship between the worker and the employer is transparent, leaving no room for doubt or ambiguity.

The Saudi labor law sets out specific requirements for employment contracts, defining the rights and obligations of both employers and employees. The following are some key points related to employment contracts under the Saudi labor law:

  • Contract details: The Saudi labor law mandates providing a written employment contract to employees. This contract must include details of employment terms and conditions, including job description, salary, working hours, probation period (if any), benefits, and termination conditions.
  • Duration and Renewal: The contract must specify the duration of employment, whether fixed-term or open-ended. In the case of fixed-term contracts, the duration and renewal terms must be clearly stated.
  • Probation Period: The law allows for a probationary period not exceeding 180 days. If either party terminates the contract, no compensation is due. The worker also does not receive an end-of-service award in this event.
  • Compensation and Benefits: The contract should specify the salary, allowances, bonuses, and any other entitlements the employee is eligible to receive. It should also detail overtime pay, if applicable.
  • Working Hours and days off: The contract must define the regular working hours on a daily or weekly basis, as well as days off and any applicable regulations for overtime work. The work type may not be changed without the worker’s written consent.
  • Termination Conditions: Clear procedures for termination by either party should be outlined in the contract, including notice periods and any end-of-service or termination benefits.
  • Employee Rights: The contract should address employee rights concerning annual leave, sick leave, maternity leave and paternity leave (if applicable), and other entitlements as per Saudi labor law.
  • Employer Obligations: Employer responsibilities regarding workplace safety, providing a conducive work environment, and compliance with labor laws and regulations should be included in the contract.

Guidelines for Creating an Employment Contract under Saudi Labor Laws

Based on the clarification of the Ministry of Human Resources and Social Development, the work contract must fundamentally include the following information:

  • Employer’s name and address.
  • Worker’s name, nationality, and the necessary identification and residence address.
  • Agreed-upon wage (including benefits and allowances).
  • Type of work, its location, and the date of start.
  • Its duration if it is for a fixed term (for non-Saudis).

According to Article 52, both parties to the contract may add additional clauses that do not conflict with the law, its regulations, and the decisions made based on it.

Additionally, the work contract must be documented in writing in two copies for both parties. If the contract is not written, it is still valid, and the worker can prove its existence and the rights arising from it by any means of proof.

Either party has the right to request the contract be put in writing at any time. In the case of employment in the government and public institutions, the hiring decision or the issued order serves as the work contract, in accordance with Article 51.

Methods for the employee to prove their contract and work may include:

  • Attendance and leave records.
  • Bank transactions.
  • Copy of their salary slip.
  • Acknowledgment of employment acceptance.
  • Job offer sent to him.
  • Correspondence between him and the hiring manager or employer.

Read more: Contract Types in the Saudi Labor Law

What are the Working Hours Regulations in the Saudi Labor Law?

The Saudi labor law includes articles and clauses related to working hours, overtime, and weekly rest days for employees across various sectors.

These regulations were drafted to ensure fair working conditions that protect the rights of both employers and employees. The following are the most important points addressed by the Saudi labor law:

  • Standard Working Hours: According to the Saudi labor law, standard working hours for most employees are set at eight hours per day, which means a total of 48 hours per week. However, during the holy month of Ramadan, working hours for Muslim employees may be reduced to six hours per day or 36 hours per week.
  • Breaks: Employees are entitled to breaks during their working hours. The law mandates a compulsory break of at least 30 minutes after every five consecutive hours of work at most. These breaks are not considered part of the total working hours.
  • Overtime Regulations: Any work performed after standard working hours is classified as overtime. Employers are obligated to pay employees for overtime at a rate of no less than 150% of their regular hourly wage. Alternatively, a compensatory leave can be taken by mutual agreement between both parties.
  • Weekly Rest Day: Friday is the official weekly rest day for employees in Saudi Arabia. However, some industries or job roles may require different rest days based on the operational needs of the work.
  • Official Holidays: Employees are entitled to paid leave on official public holidays in Saudi Arabia. Some essential services may require employees to work during holidays, with additional pay or alternative rest days provided instead
  • Special Cases and Industry-Specific Regulations: Certain sectors, such as healthcare and emergency services, may operate under different working hour regulations due to the nature of their work. Shift work or irregular working hours may be common in such industries.

These Saudi Arabia working hours regulations aim to promote employee well-being, maintain a work-life balance, and ensure fair pay for work performed after normal hours.

Compliance with these regulations also helps create a harmonious and productive work environment in Saudi Arabia while preserving the rights of both employers and employees.

What are the Employment Regulations in the Saudi Labor Law for Saudis and Expatriates?

The Saudi labor law regulates the relationship between the employee and the employer. However, there are general conditions that differ from those specific to expatriates and foreign workers. This is explained below:

General Employment Conditions in Saudi Arabia:

  • Juveniles who have completed the age of fifteen could be employed in accordance with the provisions of Chapter 10 of the Law. Juveniles between the ages of 13 and 15 may also be employed in light work that does not harm their health.
  • Workers must undergo a medical examination from an accredited authority to prove their fitness for the job.
  • The worker must have academic or practical qualifications that make him suitable for the vacant position they are applying for.

Conditions for Expatriate and Foreign Workers in Saudi Arabia:

  • The employment of non-Saudi workers is limited to fixed-term contracts that can be renewed later, unlike Saudi workers who can work with indefinite contracts from the beginning.
  • The non-Saudi worker needs to complete additional procedures and provide specific documents, such as the Ministry’s approval and a valid work permit.
  • According to Article (33) of the Law, it is a condition for non-Saudi workers that they possess professional competencies that are not available among citizens of the country, or that the number of existing workers does not meet the required need. They can also be classified as a workforce needed by the country.

What are the Wage Regulations in the Saudi Labor Law?

Wage regulations in Saudi Arabia constitute an important aspect of the country’s legal framework. They aim to ensure fair compensation for employees, regulate payment methods, and establish clear guidelines for wage-related matters.

These laws fall primarily within the scope of the Saudi labor law, which governs various payment aspects, including wage structure, deductions, and timely salary disbursement.

Wage Structure and Payment Systems

  • Minimum Wage: The minimum wage in Saudi Arabia has been raised to 4,000 riyals for Saudis.
  • Salary Disbursement: Salaries in Saudi Arabia are disbursed in the official currency of the country, and payment systems vary between daily, monthly, and piece-rate. Day laborers are paid at least once a week.
  • Overtime Pay: Overtime is paid at a rate of no less than 150% of the normal hourly wage, as stipulated by the Saudi labor law.

Deductions and Withholdings

  • Permitted Deductions: Employers are allowed to make deductions from employees’ wages for legally approved reasons such as taxes, social security subscriptions, and other legally permitted deductions as agreed upon in the employment contract or as allowed by law.
  • Prohibited Deductions: Saudi law prohibits certain deductions, such as those made without the employee’s consent, those that bring the wage below the minimum limit, or those unrelated to employment.

End-of-Service Award

Employees in Saudi Arabia are entitled to an end-of-service award depending on the duration of their service, the reason for the termination of service, and the last wage the employee received.

Legal Framework and Compliance

The wage regulations in Saudi Arabia aim to protect employees’ rights and ensure fair and timely compensation. Employers are required to comply with these regulations, and failure to do so may result in penalties, fines, or legal repercussions.

What are the Overtime Regulations in the Saudi Labor Law?

Overtime regulations are an important part of the Saudi labor law, as they govern the wages, restrictions, and procedures surrounding additional working hours that exceed the standard work schedule.

These laws are outlined in the Saudi labor law, which provides guidelines to ensure equality and fair treatment for employees and that they receive proper pay for overtime work.

Overtime regulations

  • Definition of Overtime: Overtime refers to any work performed after the standard working hours specified in the employment contract or stipulated in the labor system.
  • Pay Rate: According to the Saudi labor law, overtime must be paid at a rate of 150% or more of the employee’s regular hourly wage. This rate is higher than the standard wage to acknowledge the extra effort and time an employee puts in.
  • Maximum Overtime Hours: The law places restrictions on the number of overtime hours an employee can work. The total number of regular working hours plus overtime hours should not exceed certain weekly limits, which ensures the physical health of employees and avoids excessive fatigue.
  • Calculating Overtime: Overtime pay is calculated based on the employee’s main wage. For example, if an employee’s main wage is 10 riyals per hour, they must receive at least 15 riyals per hour for each overtime hour.
  • Alternatives to Overtime Pay: In some cases, employers and employees may agree on a compensatory leave instead of additional monetary compensation for overtime hours.

What are the Leave and Rest Days Regulations in the Saudi labor law?

Leave and rest day regulations are a key component of the Saudi labor law as they’re designed to ensure employees receive adequate time off, including annual leave, public holidays, and other forms of leave, in order to maintain a healthy work-life balance.

Annual Leave

  • Annual Leave Duration: According to the Saudi Labor Law, employees are entitled to annual leave, with the timing agreed upon with the employer. The duration of annual leave is typically calculated based on the employee’s length of service, with longer leave periods granted as years of service increase.
  • Leave Calculation: The standard annual leave entitlement in Saudi Arabia is usually 21 days or more per year for employees who have completed one to five years of service. The leave days increase with more than 5 years of service, where it shall not be less than 30 days per year.
  • Using Annual Leave: Employees have the right to use their annual leave within specific periods agreed upon with the employer, taking into account operational requirements and mutual understanding.

Public Holidays and Rest Days

  • Public Holidays: There are several officially recognized public holidays in Saudi Arabia, including religious and national holidays. Employees are generally entitled to paid leave on these holidays, although some essential services may require employees to work during these periods and be compensated accordingly.
  • Weekly Rest Day: Friday is considered the designated weekly rest day for most employees in Saudi Arabia. However, some specific industries or job roles may have different rest days depending on operational needs or agreements in the employment contract.
  • Sick Leave: The Saudi labor law allows for paid sick leave, providing employees with the necessary time off to recover from illnesses or injuries. Employers are generally required to compensate employees during their sick leave, according to specific conditions stipulated in the Saudi labor law.
  • Other Rest Periods: Employees are entitled to rest periods during their working hours, with a mandatory break of at least 30 minutes after every five consecutive hours of work. These breaks aim to ensure employees have time to rest and recharge during the workday.

Employer Obligations

Employers in Saudi Arabia are responsible for ensuring compliance with leave and rest day regulations, including accurately documenting employee leave entitlements, granting leave as stipulated by the Saudi labor law, and providing appropriate compensation where necessary.

What are the Child Labor Laws in Saudi Arabia?

Child labor regulations in Saudi Arabia provide important safeguards aimed at protecting children’s rights and safety, ensuring their well-being, and preventing their exploitation or participation in work that could endanger their education, health, or development.

Prohibition of Child Labor

  • Minimum Age for Work: The Saudi labor law strictly prohibits the employment of children under the age of 15 (except for light work for those between 13 and 15 years old).
  • Restrictions on Hazardous Work: The law prohibits minors under the age of 18 from engaging in specific hazardous or strenuous work that could pose a risk to their health, safety, or morals.
  • Education and Training: The Saudi labor law emphasizes the importance of education for children and encourages employers to support the educational pursuits of minors by not employing them in a way that conflicts with their education and upbringing.

Exceptions and Special Regulations for the Employment of Minors

  • Types of Work: Minors between the ages of 15 and 18 may engage in specific types of work, with adherence to vocational training programs, provided that the work is not harmful to their health or development. Those between 13 and 18 may also be employed in light work.
  • Working Hours and Conditions: The Saudi labor law sets restrictions on working hours for employed minors, ensuring that their work does not interfere with their education and allows them sufficient rest.
  • Employer Responsibilities: Employers who hire minors bear the responsibility for their safety and for providing suitable conditions for these workers, as well as for complying with regulations that protect their rights and well-being.

Penalties

  • Regulatory Authorities: The Ministry of Human Resources and Social Development oversees the enforcement of child labor regulations in Saudi Arabia, conducting inspections and taking necessary measures to ensure compliance with the regulations.
  • Penalties for Violations: Employers who violate child labor regulations may face fines or legal consequences, which underscores the seriousness of involving minors in unauthorized or hazardous work.

Conclusion

In Saudi Arabia, labor laws and regulations serve as pillars supporting fair employment practices and protecting workers’ rights. These laws not only regulate the relationship between employers and employees but also significantly contribute to fostering a productive and equitable work environment.

Compliance with these laws is essential for companies and institutions, fostering a culture of respect, fairness, and compliance within the workforce. As Saudi Arabia continues its journey toward progress, ensuring effective enforcement and adherence to labor laws will remain central to maintaining a balanced and thriving labor market.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.