Saudi Labor Law: The Ultimate Guide for Expatriates

Saudi labor law has undergone transformative changes, creating unprecedented opportunities for expatriate workers in the Kingdom of Saudi Arabia. You’re part of a massive community—over 16 million expat workers who make up 42% of Saudi Arabia’s entire population—and these new rules could make or break your career here. The latest amendments are game-changers, bringing the most significant overhaul to employment laws we’ve seen since 2015. Every aspect of your work life is getting an upgrade: your rights are stronger, your benefits are better, and the protections you have at work just got a serious boost.

No matter where you call home—whether you’re from Bangladesh (the largest expat group at 16%), India (14%), Pakistan (14%), Yemen (13%), Egypt (11%), Sudan (6%), the Philippines (5-6%), or any other country—these Saudi labor law changes are going to affect how you work and live in the Kingdom. With over 16 million expatriates representing 42% of Saudi Arabia’s total population, understanding these new regulations is crucial for your success here. We’ve put together this complete guide to help you understand and work with these new rules, so you can feel confident about your rights and responsibilities in your job.

Saudi Labor Law (Overview & Scope)

Saudi labor law governs all private sector employment relationships through Royal Decree No. M/51, implemented by the Ministry of Human Resources and Social Development (MHRSD). The 2025 amendments modified 38 articles, repealed 7 provisions, and added 2 new articles focused on anti-discrimination and digital integration.

Recent Saudi labor law changes reflect Saudi Arabia’s commitment to Vision 2030 objectives, creating more attractive work environments for both employers and employees while enhancing job stability. Your employment rights under Saudi law now include stronger protections against discrimination, improved resignation procedures, and enhanced leave entitlements.

Technology is at the heart of how Saudi labor law works today, and the Qiwa platform has become your go-to hub for everything from managing your employment contract documentation to handling job transfers and keeping track of compliance requirements. These tech upgrades aren’t just fancy bells and whistles—they’re making your life easier by cutting through red tape and giving you clear, honest access to the information you need.

Employment Contract

Saudi labor law employment contract requirements have been strengthened under 2025 amendments, mandating written agreements for all expatriate workers with specific terms clearly defined. Your employment contract must include job description, workplace location, comprehensive salary structure, working hours provisions, leave entitlements, and termination procedures.

Digital documentation through Qiwa is now mandatory under labor law employment contract regulations, ensuring transparency and accessibility. Contract duration defaults to one year if unspecified, with maximum four-year terms for expatriates, unlike Saudi nationals who may receive indefinite arrangements.

Saudi labor law employment contract provisions require explicit inclusion of housing and transportation arrangements, significantly improving worker conditions and clarity. These amendments prevent disputes while ensuring you understand your complete compensation package from the start.

Probation Period

Saudi labor law probation period regulations allow maximum 180 days under 2025 amendments, increased from the previous 90-day standard period. Your probation period must be explicitly stated in the employment contract and cannot be applied twice by the same employer unless for different positions with minimum six-month intervals.

During your labour law probation period, either party can terminate without compensation, though you remain responsible for return airfare if terminated. The calculation doesn’t count official holidays, sick leave days, or Eid celebrations, so you get a truly fair evaluation period.

The saudi labor law probation period changes have made things way simpler—now you and your employer can just agree on a full 180-day period right from your first day, instead of dealing with complicated extensions halfway through. This cuts down on all the paperwork headaches while still making sure both you and your employer stay protected.

Working Time & Leave

Your working time under Saudi labor law is carefully regulated to ensure reasonable work-life balance while protecting your health and safety. Maximum working hours are limited to 8 daily or 48 weekly, with special Ramadan reductions to 6 daily or 36 weekly for Muslim employees.

Working time must include mandatory 30-minute breaks after every 5 consecutive working hours, and you cannot be required to remain at the workplace for more than 11 hours daily including breaks. Saudi labor law vacation pay calculations are based on these regulated working schedules.

Saudi Labor Law Working Hours Limits

Working time under Saudi labor law establishes clear boundaries while providing flexibility for business operations. Non-Muslim employees maintain standard schedules during Ramadan, ensuring productivity while respecting religious observances across diverse workforces.

Overtime work beyond standard limits requires your consent and must be compensated at 150% of basic hourly wage using standardized formulas. Working time & saudi labor law vacation pay provisions ensure fair compensation when you work during scheduled leave periods.

Certain positions are exempt from overtime provisions, including high-ranking management with supervisory authority, preparatory or supplemental work roles, and intermittent work by nature. Saudi labor law vacation pay calculations also apply enhanced rates during holiday periods.

Your employer may provide paid compensatory time off instead of monetary overtime payment with your written consent, offering flexibility in compensation structures while maintaining working time protections.

Sick Leave

Medical certificates are mandatory for all saudi labor law sick leave claims, and employers cannot terminate your contract while you’re on legitimate medical leave. The 120-day period calculates from your first sick day, whether taken consecutively or intermittently throughout the year.

Saudi labor law sick leave protections include the right to return to your original position after recovery and continued accumulation of service years during legitimate absences. End-of-service benefits calculations and annual leave accrual remain unaffected by medical leave periods.

Protection mechanisms under saudi labor law sick leave prevent employer retaliation while maintaining reasonable documentation requirements for system integrity.

Maternity Leave

Great news if you’re expecting or planning to start a family! saudi labor law maternity leave got a major upgrade in 2025, and now you can take 12 full weeks off with complete pay instead of the old 10-week limit—as long as you meet the requirements. This change means more precious time with your new baby without worrying about your paycheck. Six weeks must be taken immediately following childbirth, while the remaining six weeks can be distributed at your discretion starting up to four weeks before expected delivery.

Payment during saudi labor law maternity leave varies by service tenure: no payment for less than one year, 50% salary for 1-3 years of service, and full salary for 3+ years of service. Additional provisions include one month paid leave for special needs children requiring continuous care.

Saudi labor law maternity leave protections extend beyond the leave period, prohibiting termination during pregnancy and for six months after return to work. Upon returning, you’re entitled to daily one-hour nursing breaks for up to 18 months without salary or working hour reductions.

Enhanced saudi labor law maternity leave benefits reflect Saudi Arabia’s commitment to supporting working mothers while aligning with international standards.

Annual Leave (Article 109)

Article 109 saudi labor law establishes your fundamental right to paid annual leave, beginning at 21 days for the first five years of service. After five consecutive years with the same employer, your entitlement increases to 30 days annually under article 109 provisions.

Article 109 saudi labor law mandates that annual leave cannot be exchanged for cash payments during employment, ensuring actual rest and recreation time. Vacation pay calculation follows the formula: (Monthly Salary ÷ 30) × Leave Days, providing transparent compensation standards.

Your article 109 saudi labor law vacation must be paid in advance, and employers must provide 30 days notice for leave scheduling. Unused leave may be postponed up to 90 days into the following year, or until the end of the following year with written consent.

Article 109 saudi labor law protections ensure you receive fair compensation while maintaining operational considerations for businesses.

Vacation Pay (Saudi Labor Law)

Saudi labor law vacation leave calculations ensure fair compensation during annual leave periods based on basic salary plus regular allowances, excluding overtime and bonus payments. Calculation methods are standardized to prevent manipulation across all employment relationships.

The formula divides monthly salary by 30 days, then multiplies by leave days taken, providing transparency in saudi labor law vacation leave compensation. Advanced payment requirements help you plan financially for time off while preventing employer delays.

Your saudi labor law vacation leave entitlements cannot be reduced below minimum 21 days for new employees or 30 days for experienced workers. Contracts may provide additional leave days beyond these saudi labor law vacation leave minimums.

Saudi labor law vacation leave provisions maintain work-life balance while ensuring operational flexibility for employers across all sectors.

Expatriate Core Topics under Saudi Labor Law

Being an expatriate worker means you’re dealing with a whole different set of rules and challenges, and that’s exactly why you need to really understand the ins and outs of regulations, government platforms, and how you’re protected under Saudi labor law. The good news? Recent changes have made things way better for people like you—you’ve got more freedom to move around and stronger protections, while still keeping the important rules in place.

When you get a handle on these expatriate-specific rules, you’ll be able to work your way through the Kafala system, make the most of those digital platforms, and actually stand up for your rights as you build your career here in Saudi Arabia.

Kafala System and Saudi Labor Law

Dramatic reforms since March 2021 have fundamentally changed employment mobility under Saudi labor law, allowing job changes without employer consent after contract completion. During active contracts, you can transfer employers after one year with 90 days notice to your current employer.

You don’t have to stay stuck with a bad employer! Saudi labor law actually gives you the right to make immediate job transfers in some pretty specific situations—like when your work permit runs out, when your boss hasn’t paid you for three straight months, or if there’s a workplace dispute and your employer just doesn’t show up to the hearings. Plus, there’s this thing called the “Labor Relationship” program that lets you switch employers up to three times while your Iqama is still valid, giving you real options to find a better situation.

Recent labor law reforms have introduced stronger protection against false reporting, with employers facing five-year service suspensions for malicious accusations. However, certain restrictions remain for specific worker categories including domestic workers and some agricultural employees.

These Kafala system changes under Saudi labor law represent the most significant improvement in expatriate worker rights in decades.

Penalties for Employers (Expatriate)

Here’s some great news if you’re worried about employers getting away with treating workers badly: Saudi labor law doesn’t mess around when it comes to protecting you. Employers who break the rules face some serious financial pain—we’re talking fines anywhere from SAR 5,000 all the way up to SAR 50,000, depending on what they did wrong. And if they keep pulling the same stunts? They can actually lose their business licenses, which is a pretty powerful way to make sure employers think twice before mistreating their workers.

Wage theft carries severe penalties under Saudi labor law including SAR 10,000 monthly fines through the Wage Protection System. Employers who fail to register with WPS or delay salary payments face automatic penalties and potential business suspensions.

Discrimination violations result in fines up to SAR 30,000 plus mandatory compliance training under Saudi labor law. Document retention violations include SAR 15,000 fines for holding employee passports or Iqamas, making passport confiscation economically devastating.

For expatriate in particular, these rules are critical. With nearly half of Saudi Arabia’s workforce made up of foreign nationals, expatriates are the most exposed to abuse under systems like Huroob or illegal passport confiscation. The reinforced penalties give expatriates more legal protection, making it harder for employers to exploit their residency status or withhold their wages. This framework is designed to create a safer and fairer environment for foreign workers, ensuring they can seek recourse without fear of retaliation.

Contracts & Legal Status

Your legal standing here is tied up pretty tightly with your job contract and how current your Iqama is, so getting a good grasp on how these pieces fit together isn’t just helpful—it’s absolutely crucial for staying legally allowed to live and work in the Kingdom. As an expatriate, you’re still required to have fixed-term contracts, and they can’t run longer than four years since they have to match up with when your work permit expires.

Contract renewal under Saudi labor law requires mutual agreement, with neither party able to force renewal without justification. Recent amendments have clarified termination procedures and employee rights during employment separation.

Job Mobility & Transfer without NOC (Qiwa)

Revolutionary changes to job mobility have eliminated traditional No Objection Certificate (NOC) requirements for most transfers through the Qiwa platform under Saudi labor law. You can now submit transfer requests directly after meeting minimum service requirements.

Transfer approval depends on completing service periods, maintaining good standing, having valid permits, and receiving offers from licensed companies under Saudi labor law. Processing typically takes 7-14 business days with automatic approvals when employers don’t respond within specified timeframes.

Immediate transfers without NOC requirements are available if employers fail to pay salaries for three months or violate contract terms.

Sponsorship System (Kafala) Reforms

Traditional Kafala system restrictions have been significantly modified under Saudi labor law to improve worker protection while maintaining immigration control. Your sponsorship now includes automatic transfer rights upon contract completion and protection against arbitrary visa cancellation.

New categories of “portable” work permits allow skilled professionals in certain sectors to change employers with minimal restrictions. These reforms particularly benefit IT professionals, healthcare workers, and engineers seeking career advancement.

Recent reforms create pathways for employment mobility that were previously unavailable under Saudi labor law.

Renewal and Termination of Contracts

Standardized procedures under Saudi labor law protect both parties during contract renewals and terminations through written notice requirements and response opportunities. End-of-contract procedures include final settlement calculations and exit visa processing, now largely automated through government platforms.

Termination protection mechanisms under Saudi labor law prevent arbitrary dismissals while allowing legitimate business decisions based on documented performance issues.

Huroob Cases (Absconding/Runaway)

Here’s something you really need to watch out for: if you’re away from work for 30 or more days in a row without getting permission first, you’ll automatically get hit with Huroob status under Saudi labor law. But there’s some good news—recent changes have added ways to protect you if someone tries to falsely accuse you of this. If this happens to you, don’t panic—you actually have some options to fix things. You can look for a new employer who’s ready to process your transfer and take you on, or you can go the final exit route and apply for that visa instead. The catch? You only have 60 days to figure this out and get moving, so don’t wait around—time really matters here.

Penalties for confirmed cases under Saudi labor law include SAR 50,000 fines, six-month imprisonment, deportation, and five-year re-entry bans. New appeal processes help legitimate workers avoid these severe consequences through proper documentation and legal procedures.

Prevention mechanisms under Saudi labor law encourage accurate reporting while reducing opportunities for employer abuse of the system.

Pay & Working Time

Compensation and working time arrangements under Saudi labor law must comply with minimum wage requirements and overtime regulations. Recent amendments have strengthened wage protection mechanisms and expanded overtime coverage for expatriate workers.

Understanding these provisions helps you negotiate fair employment terms and identify potential violations under Saudi labor law.

Overtime Calculation Rules

Overtime compensation under Saudi labor law equals 150% of basic hourly wages for work beyond standard limits. The calculation formula is: [Basic Salary ÷ (Working Days per Month × Daily Hours) × 1.5] × Overtime Hours, ensuring transparent compensation.

Employers may offer compensatory time off instead of overtime payment under Saudi labor law with your written consent, provided at the same 150% rate. All work during public holidays and Eids constitutes overtime, effectively providing double pay rates.

Calculation transparency under Saudi labor law prevents employer manipulation while ensuring you receive appropriate compensation for additional work efforts.

Public Holidays (Eid, National Day, Hajj Leave)

Five official public holidays apply to all expatriates under Saudi labor law: Eid al-Fitr (4 days), Eid al-Adha (4 days), Saudi National Day, Saudi Founding Day, and Islamic New Year. Work during these periods requires overtime compensation at double pay rates.

Hajj leave under Saudi labor law provides 10-15 paid days for employees with minimum two years of service, available once per employment relationship for first-time pilgrims. Religious accommodations include prayer time allowances and Ramadan schedule adjustments.

Holiday provisions under Saudi labor law balance religious observance with operational requirements across diverse workforces.

Compassionate Leave (Death/Emergency)

When life throws you those big moments—both the heartbreaking ones and the joyful ones—saudi labor law has got your back with expanded compassionate leave that really understands what you’re going through. If you lose your spouse or a parent, you get 5 full paid days to grieve and handle everything you need to, while losing a sibling gives you 3 paid days. On the happier side of things, getting married means you can take 5 paid days to celebrate and get settled, and new dads get 3 paid days to bond with their baby—just make sure you use those paternity days within the first week after your little one arrives.

International emergency leave under Saudi labor law allows additional unpaid leave for serious family emergencies in your home country with job protection guarantees. These provisions acknowledge unique challenges faced by expatriate workers maintaining family connections internationally.

Emergency leave provisions under Saudi labor law require employer good faith consideration of urgent personal circumstances.

Leave Encashment (Unused Vacation Payout)

Restrictions on leave encashment during employment under Saudi labor law ensure annual leave is taken as actual time off. Unused leave receives compensation at contract termination based on final salary rates using standardized formulas.

Partial year compensation under Saudi labor law provides proportional benefits for incomplete service years. Employers cannot pressure employees into skipping vacations through encashment offers, with such manipulation resulting in penalties.

Transparent calculation methods under Saudi labor law prevent disputes while ensuring you receive appropriate compensation for unused entitlements.

Compliance & Employee Protection

The system has gotten a lot smarter about protecting you at work. Thanks to these new automated compliance systems under Saudi labor law, employers can’t just ignore their responsibilities anymore—the technology keeps track of everything and makes sure they’re doing what they’re supposed to do, while also giving you real ways to fight back when things go wrong. When you actually understand what these compliance rules are all about, you’ll be way better at spotting when your employer is stepping out of line and knowing exactly how to use the protection tools that are there for you.

Proactive enforcement under Saudi labor law prevents problems before they significantly affect workers, improving overall employment conditions across the private sector.

Wage Protection System (WPS)

Here’s something that’s actually working in your favor: saudi labor law now requires that your salary gets paid electronically every month by the 9th, and it has to go through a registered Saudi bank account. This isn’t just a suggestion—every single private company has to follow this rule, no matter how big or small they are. And if your employer tries to skip out on registering for this system? They’re looking at a hefty SAR 10,000 fine every month until they get with the program. This means you can count on getting paid on time, every time.

Your rights under WPS and Saudi labor law include automatic job transfer eligibility if salaries remain unpaid for three months. Real-time reporting to MHRSD enables proactive intervention before wage theft becomes systematic.

Digital integration under Saudi labor law provides transparency and accountability in wage payment systems.

Occupational Safety & Health Standards

Comprehensive safety requirements under Saudi labor law include maintaining safe working environments, providing necessary safety equipment, and conducting regular training. Your safety rights include refusing unsafe work and reporting hazardous conditions without retaliation.

Employer safety violations under Saudi labor law result in fines up to SAR 200,000 for serious infractions and potential criminal charges for fatal accidents. Safety training must be provided in understandable languages with documented completion records.

Protection mechanisms under Saudi labor law prevent retaliation against workers reporting safety concerns.

Legal vs Illegal Deductions from Salary

Legal salary deductions under Saudi labor law are limited to specific categories with maximum percentages: loan repayments (10%), GOSI contributions, voluntary savings, housing installments, and documented disciplinary fines. Written consent is required for deductions beyond legally mandated categories.

Prohibited practices under labor law include unauthorized deductions without written consent and reductions below minimum wage thresholds. Overall deduction limits cap total reductions at 50% of wages unless approved by Labor Disputes Commission.

Appeal rights under Saudi labor law allow challenging improper salary reductions through Labor Disputes Commissions within one week.

Government Platforms for Expats

Digital platforms under Saudi labor law have revolutionized how you access services, monitor status, and exercise employment rights. Your success increasingly depends on effectively utilizing Qiwa, Absher, and related systems for employment services and compliance monitoring.

Integration across platforms under Saudi labor law provides seamless service delivery while maintaining accurate employment records.

Qiwa — Job Contracts, Mobility, Transfers

Primary employment services interface under Saudi labor law requires Absher verification for registration, providing access to job transfer requests, contract viewing, and salary certificates. Your profile maintains complete employment history and compliance records that follow you throughout your Saudi career.

Streamlined transfer procedures under Saudi labor law have reduced processing times from months to weeks, with the platform handling over 80% of employment contracts digitally. Available services include contract authentication, job matching, and direct communication with MHRSD.

Platform evolution under Saudi labor law continues expanding services and improving user experience for all stakeholders.

Absher — Final Exit, Re-entry Permits, Iqama Status

Comprehensive government services under Saudi labor law include digital Iqama display, passport renewal services, and Huroob status checking through a single integrated platform. Your account serves as primary government identity verification, integrating with all other services.

Simplified final exit procedures under Saudi labor law allow application submission with automatic employer approval if no response within 10 days. Re-entry permit applications enable vacation travel with guaranteed return rights under proper conditions.

Service integration under Saudi labor law reduces administrative burden while improving accuracy and accessibility.

Mudad / WPS — Wage Payments & Employer Compliance

Small and medium enterprise services under Saudi labor law include automated WPS compliance, contract authentication, and GOSI integration. Real-time monitoring provides immediate payment tracking and automatic penalty assessment for late payments.

Your payment history under Saudi labor law creates permanent records useful for loan applications and visa renewals. Employer compliance monitoring enables proactive intervention before violations affect workers.

Platform efficiency under Saudi labor law continues improving through technological advancement and user feedback.

Social Insurance & Healthcare

Comprehensive social protection under Saudi labor law includes mandatory and voluntary insurance programs designed to protect you during employment. Understanding available options helps maximize benefits while ensuring compliance with mandatory requirements.

Recent healthcare system changes under Saudi labor law will maintain private insurance requirements for expatriates while improving service delivery.

GOSI (General Organization for Social Insurance)

Work injury protection under Saudi labor law covers expatriates through employer contributions of 2% of basic salary plus housing allowance. Coverage includes medical expenses for work injuries, disability compensation up to SAR 330,000, and death benefits for dependents.

Mandatory registration under Saudi labor law applies to all employees earning above minimum thresholds, with automatic enrollment through employers. Work injury claims require immediate employer notification and medical documentation within specified timeframes.

Protection mechanisms under Saudi labor law provide financial security for work-related injuries affecting expatriate workers.

Mandatory Private Health Insurance for Expatriates

Comprehensive coverage requirements under Saudi labor law apply to all expatriates and dependents through CCHI-accredited providers. Coverage includes consultations, treatments, surgeries, medications, and emergency care, with employers responsible for premium payments.

Non-compliance penalties under Saudi labor law include up to SAR 5,000 fines per uninsured employee and potential work permit renewal refusals. Healthcare system evolution will maintain private insurance requirements while improving service delivery and cost management.

Continuous improvement in healthcare accessibility under Saudi labor law benefits all expatriate workers regardless of sector.

Key Articles (Hub)

Understanding specific provisions within Saudi labor law provides detailed knowledge of your rights and obligations during employment. These key articles form the foundation of employment protections and define acceptable workplace behavior boundaries.

Each article discussed provides practical guidance for common workplace situations under Saudi labor law.

Article 53 Saudi Labor Law

Article 53 saudi labor law establishes fundamental employment rights and obligations for both employees and employers in private sector relationships. Your rights include receiving contracted salary, working in safe environments, and dignified treatment, while obligations include performing duties diligently and maintaining confidentiality.

Enforcement mechanisms under article 53 saudi labor law provide remedies for violations including compensation and access to dispute resolution procedures.

Article 74 Saudi Labor Law

Article 74 saudi labor law governs contract termination procedures and employer obligations during employment separation. Written notice requirements, specific reason specifications, and response opportunities before final decisions protect your interests during termination proceedings.

Compensation requirements under article 74 saudi labor law include final salary payments, unused leave compensation, and end-of-service benefits payable within one week.

Article 77 Saudi Labor Law

Article 77 saudi labor law is actually looking out for you when it comes to how many hours you work and making sure you get paid fairly for any extra time you put in—it’s designed to stop employers from working you into the ground while guaranteeing you get what you deserve. The law sets clear limits on how long you can work, makes sure you get those much-needed break periods, and if you do end up working overtime, you’ll get paid 150% of your regular hourly rate. That’s time-and-a-half, which means your extra effort actually pays off.

Special provisions under article 77 saudi labor law address Ramadan working hours and shift work arrangements across different employment situations.

Saudi Labor Law Article 80

Saudi labor law article 80 lays out the exact situations where your employer can actually fire you without having to pay you any compensation—and we’re talking about serious stuff like physically attacking someone, completely failing to do the main parts of your job, or doing things that mess with your professional integrity. They can also let you go without pay for forging documents, misusing your position, spilling company secrets, or being absent way too much.

But here’s what’s important: your rights under saudi labor law article 80 mean you’re not defenseless if this happens to you. You get to fight back against whatever they’re accusing you of, they have to give you written notice spelling out exactly what the charges are, and you can appeal their decision if you think it’s wrong. The system has built-in protections to stop employers from just making stuff up—they need real proof and they have to follow the proper steps, so they can’t just toss you out on a whim.

Saudi labor law article 80 cannot be applied retroactively for violations occurring more than 180 days prior to disciplinary action. Documentation requirements protect you while allowing employers to address legitimate misconduct through proper channels.

Saudi Labor Law Article 81

saudi labor law article 81 gives you some real power when your employer is treating you badly—you can actually quit immediately without giving any notice if they’re not paying your wages, if they lied to you about your contract, or if your workplace is genuinely dangerous. The best part? When you leave under these conditions, you still get your full end-of-service benefits no matter how long you’ve been working there. It doesn’t matter if you’ve been there two months or two years—if your employer screwed up in these serious ways, you can walk away with everything you’ve earned and not have to stick around for any notice period.

Documentation requirements under saudi labor law article 81 involve providing evidence supporting resignation grounds. Legal protections prevent employer retaliation and ensure immediate alternative employment seeking without waiting periods.

Anti-retaliation measures under saudi labor law article 81 protect workers who exercise these rights while maintaining system integrity.

Article 84 Saudi Labor Law

Article 84 saudi labor law establishes notice period requirements for contract termination, with standard periods of 60 days for indefinite contracts and 30 days for fixed-term contracts. Employers may waive notice periods and provide payment in lieu at regular salary rates.

Your obligations under article 84 saudi labor law include completing assigned work and transferring responsibilities during notice periods.

Article 85 Saudi Labor Law

Article 85 saudi labor law addresses immediate contract termination procedures without notice in specific circumstances including serious misconduct and criminal conviction. Protection includes written notification rights and response opportunities before termination becomes final.

Appeal mechanisms under article 85 saudi labor law provide access to dispute resolution if termination is believed unjustified.

Article 98 Saudi Labor Law

Article 98 saudi labor law governs workplace safety and employer obligations to maintain safe working conditions. Your rights include refusing unsafe work, reporting hazardous conditions, and accessing medical treatment for work-related injuries.

Enforcement mechanisms under article 98 saudi labor law include workplace inspections and penalty assessments for violating employers.

Article 112 Saudi Labor Law

Article 112 saudi labor law establishes dispute resolution procedures and labor court access for workplace violations. Your rights include legal representation, interpretation services, and protection against employer retaliation for filing complaints.

Time limitations under article 112 saudi labor law require filing claims within 12 months for wage and benefit disputes.

Article 113 Saudi Labor Law

Article 113 saudi labor law establishes penalty structures for employer violations, with fines ranging from SAR 5,000 to SAR 50,000 depending on violation severity. Your protection includes confidentiality during investigations and retaliation protection for cooperation with authorities.

Escalating penalties under article 113 saudi labor law ensure persistent violators face increasing consequences until compliance is achieved.

Article 117 Saudi Labor Law

article 117 saudi labor law is all about making sure you get everything you’re owed when your job ends, and it puts some real deadlines on your employer to get their act together. When your contract wraps up, they can’t just drag their feet—they have exactly one week to pay you your final salary, compensate you for any vacation days you didn’t use, and hand over your end-of-service benefits. No excuses, no delays, no “we’ll get to it when we get to it.” One week, and you should have everything that’s rightfully yours.

Your rights under article 117 saudi labor law include challenging incorrect calculations and receiving corrected payments within specified timeframes.

Termination, Resignation & Final Exit

Saudi labor law termination of contract and resignation procedures have been significantly updated under 2025 amendments to provide clearer rights and obligations. Whether planning resignation, facing termination, or considering final exit, understanding these frameworks protects your interests while ensuring legal compliance.

Recent changes to saudi labor law termination of contract and resignation have strengthened employee protections while streamlining administrative procedures. Enhanced provisions provide better protection while maintaining reasonable expectations for all parties involved.

Saudi Labor Law Resignation

Good news if you’re thinking about moving on—saudi labor law resignation procedures are way more straightforward now thanks to the 2025 amendments. Everything has to be done in writing, and there are actual deadlines that everyone has to follow, so no more confusion about what’s supposed to happen when. Here’s how the money works out: if you’ve been there between 2 and 5 years, you get one-third of your benefits; stick around for 5 to 10 years and you’ll get two-thirds; and if you’ve put in 10 or more years, you get the full amount. The resignation benefits saudi labor law calculations are pretty clear-cut based on how long you’ve been with the company.

The best part about the new resignation process? You give your 30-day notice, and if your employer doesn’t get back to you, it’s automatically accepted—no more waiting around forever while they drag their feet on your resignation benefits saudi labor law processing. They can’t just ignore you and keep you hanging indefinitely anymore.

Notice Period

Notice period requirements under Saudi labor law vary by contract type, with standard periods of 60 days for indefinite contracts and 30 days for fixed-term contracts. Your obligations include completing assigned work and transferring responsibilities during transition periods.

Employers may waive notice periods and provide payment in lieu at regular salary rates under Saudi labor law.

Termination of Contract by Employee

Saudi labor law termination of contract by employee procedures allow ending employment under specific circumstances with full benefit entitlements. Circumstances include employer failure to pay wages, contract fraud, workplace assault, and dangerous working conditions.

Your rights under saudi labor law termination of contract by employee include immediate departure without notice periods and full end-of-service benefits.

Breach of Contract

When things go wrong with your work contract, saudi labor law breach of contract rules make sure there are real consequences and ways to fix the situation—and this goes both ways, for you and your employer. If your employer breaks the deal, it could be something like not paying your wages on time or sticking you with housing that’s way below standard. On your end, breaches might include taking off work without permission or sharing company secrets you’re not supposed to talk about.

The good news is that remedies under saudi labor law breach of contract aren’t just empty promises—you can actually get money to make up for what went wrong, and in serious cases, you might even have the right to end your contract completely. All of this gets sorted out through proper dispute resolution procedures, so there’s a real system in place to handle these problems.

Salary Deduction

Saudi labor law salary deduction regulations strictly limit employer deductions from your wages, protecting income from arbitrary reductions. Legal categories include loan repayments (maximum 10%), GOSI contributions, and documented disciplinary fines (maximum 5 days’ wages).

Overall saudi labor law salary deduction limits cap total deductions at 50% of wages unless approved by Labor Disputes Commission.

Final Exit Procedures (Saudi Labor Law)

Leaving Saudi Arabia for good used to be a real headache, but saudi labor law for final exit procedures have gotten a lot easier thanks to recent changes—now you actually have more say in when you can pack up and go. Here’s what you need to get done: take care of any outstanding issues or violations, get your no-dues certificate showing you don’t owe anything, make sure your passport isn’t about to expire, submit everything through the Absher system, and then get out of the country before your visa runs out. It’s still a process with several steps, but at least now you’re not completely at the mercy of other people’s schedules when you’re ready to head home.

Recent improvements to saudi labor law for final exit include automatic approval if employers don’t respond within 10 days.

End of Service Benefits (EOSB)

Saudi labor law end of service benefits provide financial security upon contract termination through standardized calculation formulas. Your benefits follow a tiered structure: half-month salary per year for the first five years, and full-month salary per year thereafter.

Recent updates to saudi labor law end of service benefits have clarified calculation methods and improved payment timelines. Enhanced protection includes automatic calculations through government platforms and penalties for employers who delay payments.

End of Service Calculator

Saudi labor law end of service calculator formulas ensure consistent benefit determination based on service duration and salary history. Benefits equal: (0.5 × Monthly Basic Salary × First 5 Years) + (1.0 × Monthly Basic Salary × Years After 5).

Digital saudi labor law end of service calculator tools available through Qiwa provide real-time benefit calculations.

End of Service Computation

When it comes time to calculate your end-of-service benefits, saudi labor law end of service computation methods make sure you get treated fairly no matter where you work or what industry you’re in. Here’s the key thing to know: they only count your basic salary when doing the math—they don’t include overtime pay, bonuses, or allowances in the calculation. This might seem like you’re missing out, but it actually creates a level playing field so everyone gets fair treatment regardless of how their pay package is set up. Whether you get a lot of bonuses or just a straight salary, the computation works the same way for everyone.

Computation under saudi labor law end of service computation must be completed within one week of contract termination.

Resignation Benefits

Resignation benefits saudi labor law calculations provide no benefits for less than 2 years service, one-third benefits for 2-5 years, two-thirds for 5-10 years, and full benefits for 10+ years. Special circumstances provide full benefits when resigning due to employer violations.

Understanding resignation benefits saudi labor law helps make informed career decisions while planning financial transitions.

Updates & Amendments (2020–2025)

The world of work in Saudi Arabia has completely changed thanks to these wide-reaching saudi labor law amendments that actually tackle the real issues you face in today’s workplace. The February 2025 updates are massive—we’re talking about the most dramatic changes since they first wrote the original law, with 38 different articles getting completely reworked and brand new anti-discrimination protections thrown into the mix. This isn’t just some minor adjustments here and there; this is a complete makeover that actually gets how totally different your work life is today compared to when they first put these rules together.

Getting a good handle on these recent saudi labor law amendments isn’t just smart—it’s how you’ll figure out what new rights you have, what’s expected of you now, and how to really make the most of all these better protections they’ve put in place.

Latest Saudi Labor Law

The latest saudi labor law changes that kicked in this February 2025 are pretty impressive—they’re not just minor tweaks, but real comprehensive updates that make your life as a worker better while also helping the country’s economy grow in new directions. Here’s what you’re getting: much better resignation procedures that actually work in your favor, longer probation periods that give you and your employer more time to figure things out, improved maternity leave that recognizes what new moms really need, and serious anti-discrimination protections that mean you can’t be treated unfairly because of who you are. It’s like they finally listened to what workers actually needed and built it into the law.

Get the complete legal text including all amendments, reforms, and rights for expatriates in Saudi Arabia.

Medical Insurance (Recent Changes)

You don’t have to worry about being left without healthcare coverage—saudi labor law medical insurance requirements make sure every expatriate worker gets solid, comprehensive protection through the updated rules. Here’s how it works: your coverage has to come through CCHI-accredited providers (those are the approved ones), and the best part is that your employer has to foot the bill for your premiums and make sure you get a complete benefits package. So you’re not just getting basic coverage—you’re getting the real deal, and you’re not paying for it out of your own pocket.

Future changes to saudi labor law medical insurance will maintain private insurance requirements for expats while improving service delivery.

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FAQ – Saudi Labor Law for Expatriates

General Questions

Q: Who is affected by the 2025 amendments?

A: These changes are coming straight for you if you’re an expatriate in Saudi Arabia’s private sector. You’re actually part of something pretty amazing—a huge community of more than 16 million expatriates who represent nearly half the country’s population at 42%. That’s a lot of people in the same boat as you! That means these amendments touch the lives of millions of foreign workers just like yourself—so you’re definitely not alone in navigating these updates.

Q: What are the main changes introduced in 2025?

A: Here’s what you need to know about these 2025 changes—they’re huge. We’re talking about 38 articles that got updated, 7 old rules that were completely thrown out, and 2 brand-new articles that focus on fighting discrimination and bringing things into the digital age. This is honestly the biggest shake-up you’ll see since 2015, so it’s worth paying attention to.

Q: How do I access government services as an expatriate?

A: You’ll handle everything through digital platforms that make your life way easier. Think Qiwa for all your employment stuff, Absher when you need government services, and Mudad/WPS for getting your wages. These platforms basically take care of everything you need—from managing your contract all the way to your final exit procedures when it’s time to leave.

Contracts and Probation Period

Q: What’s the maximum contract duration for expatriates?

A: Maximum 4 years for expatriates (unlike Saudi nationals who may receive indefinite contracts). If duration isn’t specified, the contract defaults to one year.

Q: How long can the probation period last?

A: Maximum 180 days (increased from the previous 90-day standard). It must be explicitly stated in the employment contract and cannot be applied twice by the same employer unless for different positions with minimum six-month intervals.

Q: Can I be terminated during probation without compensation?

A: Yes, either party can terminate without compensation during probation, though you remain responsible for return airfare if terminated by the employer.

Working Hours and Leave

Q: What are the maximum working hours?

A: 8 hours daily or 48 hours weekly. During Ramadan, Muslim employees work 6 hours daily or 36 hours weekly. You cannot be required to remain at the workplace for more than 11 hours daily including breaks.

Q: How much annual leave am I entitled to?

A: 21 days for the first five years of service, increasing to 30 days annually after five consecutive years with the same employer. Annual leave cannot be exchanged for cash during employment.

Q: What about maternity leave?

A: 12 weeks of maternity leave (increased from 10 weeks). Payment varies by service tenure: no payment for less than one year, 50% salary for 1-3 years, and full salary for 3+ years of service.

Q: How is overtime calculated?

A: When you work overtime, you’ll earn 150% of what you normally make per hour—basically time and a half. Here’s how they figure it out: they take your basic salary and divide it by your working days per month, then divide that by your daily hours, multiply by 1.5, and then multiply by however many overtime hours you actually worked. It sounds complicated, but it just means you’re getting paid extra for those extra hours you put in.

Kafala System and Job Mobility

Q: Can I change jobs without my employer’s permission?

A: Yes! Since March 2021 reforms, you can change jobs without employer consent after contract completion. During active contracts, you can transfer after one year with 90 days notice.

Q: When can I transfer immediately without notice?

A: When your work permit expires, when your employer hasn’t paid you for three straight months, or if there’s a workplace dispute and your employer doesn’t show up to hearings.

Q: What is the “Labor Relationship” program?

A: It allows you to switch employers up to three times while your Iqama is still valid, giving you real options to find better employment situations.

Wages and Payments

Q: When must my salary be paid?

A: Electronically every month by the 9th through a registered Saudi bank account via the Wage Protection System (WPS). Employers face SAR 10,000 monthly fines for non-compliance.

Q: What salary deductions are legal?

A: Legal deductions include loan repayments (max 10%), GOSI contributions, voluntary savings, housing installments, and documented disciplinary fines. Total deductions cannot exceed 50% of wages.

Q: What happens if my employer doesn’t pay my salary?

A: If your employer hasn’t paid you for three months straight, you’ve got a powerful option—you can automatically transfer to a new job. This isn’t just a slap on the wrist for your employer either; it’s considered a really serious violation that comes with harsh penalties. So if you’re stuck with unpaid wages, you’re not powerless in this situation.

Termination and End of Service

Q: How much notice is required for termination?

A: 60 days for indefinite contracts, 30 days for fixed-term contracts. Employers may waive notice periods and provide payment in lieu.

Q: How are end-of-service benefits calculated?

A: Here’s how your end-of-service benefits work: for your first five years, you get half a month’s salary for each year you’ve worked. After that five-year mark, you earn a full month’s salary for every additional year. So the math looks like this: take half your monthly basic salary and multiply it by your first 5 years, then add your full monthly basic salary multiplied by however many years you worked beyond those first 5. The longer you stay, the better it gets for you.

Q: Do I get benefits if I resign?

A: Yes, but it depends on service duration: no benefits for less than 2 years, one-third for 2-5 years, two-thirds for 5-10 years, and full benefits for 10+ years.

Q: When must final payments be made?

A: Once your contract ends, your employer doesn’t get to drag their feet—they have exactly one week to get you everything you’re owed. That means your final paycheck, compensation for any vacation days you didn’t use, and your end-of-service benefits all need to be in your hands within seven days. No excuses, no delays.

Health Insurance and Safety

Q: Is health insurance mandatory?

A: Yes, comprehensive coverage through CCHI-accredited providers is required for all expatriates and dependents, with employers responsible for premium payments.

Q: What are my safety rights at work?

A: You can refuse unsafe work and report hazardous conditions without retaliation. Employers must provide necessary safety equipment and training in understandable languages.

Violations and Penalties

Q: What happens if my employer violates labor law?

A: If employers decide to break the rules, they’re in for some real trouble. The fines start at SAR 5,000 and can go all the way up to SAR 50,000, depending on just how serious their violation is. But here’s where it gets really intense—if they commit major violations, they could end up losing their business license entirely or even facing criminal charges. So there are real teeth behind these protections for you.

Q: Can my employer hold my passport?

A: No! Passport confiscation results in SAR 15,000 fines for employers. This practice is illegal and heavily penalized.

Q: What is Huroob status?

A: If you’re absent from work for 30+ consecutive days without permission, you automatically get Huroob (absconding) status. You have 60 days to find a new employer or apply for final exit.

Final Exit and Departure

Q: How do I apply for final exit?

A: Through the Absher system. You need to clear outstanding violations, obtain a no-dues certificate, ensure passport validity, and exit before visa expiration. Automatic approval occurs if employers don’t respond within 10 days.

Q: Can I travel and return during my contract?

A: Yes, through re-entry permits available via Absher, enabling vacation travel with guaranteed return rights under proper conditions.

Sources

www.globalmediainsight.com, www.addleshawgoddard.com, www.kslaw.com, www.hrw.org, www.migrant-rights.org, www.myksa.net, www.arabiangulflife.com, www.stats.gov.sa, www.saudiembassy.net, www.saudilegal.com, www.hrsd.gov.sa.