INTRODUCTION
Understanding Saudi labor law for employees is essential for anyone working in the Kingdom. Whether you are an expat or a local employee, Saudi labor laws protect your rights and clearly define employer responsibilities.
In 2026, Saudi Arabia continues to strengthen labor regulations to ensure fair treatment, job security, and workplace transparency. This guide explains the most important rules every employee must know.
Employment Contracts in Saudi Arabia
Every employee must have a written contract.
Types of Contracts
- Fixed-term contract (most common for expats)
- Unlimited contract (mainly for Saudi nationals)
Your contract must include:
- Job title
- Salary and benefits
- Working hours
- Contract duration
- Termination terms
Always keep a signed copy.
Working Hours and Overtime Rules
According to Saudi labor law:
- Standard working hours: 8 hours per day
- Maximum: 48 hours per week
- During Ramadan: 6 hours per day
Overtime Pay
- Paid at 150% of basic hourly wage
- Must be approved by the employer
Weekly Rest and Public Holidays
Employees are entitled to:
- One weekly rest day (usually Friday)
- Paid public holidays, including:
- Eid Al-Fitr
- Eid Al-Adha
- National Day
Annual Leave Entitlement
Saudi labor law for employees provides:
- 21 days paid annual leave after one year
- 30 days after five years of service
Unused leave may be compensated as per company policy.
Sick Leave Policy
Employees are entitled to:
- First 30 days: Full pay
- Next 60 days: 75% pay
- Next 30 days: Unpaid leave
Medical reports from approved hospitals are required.
Probation Period Rules
- Maximum probation period: 90 days
- Can be extended to 180 days (with agreement)
- Either party may terminate during probation
Termination and Notice Period
Notice Period
- Fixed-term contracts: As stated in contract
- Unlimited contracts:
- 60 days (monthly salary)
- 30 days (daily wage)
Unlawful termination may lead to compensation.
End-of-Service Benefits (ESB)
One of the most important employee rights.
Calculation
- First 5 years: Half month salary per year
- After 5 years: One full month salary per year
Calculated based on last basic salary.
Salary guide for gulf countires
Employee Rights Under Saudi Labor Law
Employees have the right to:
- Receive salary on time
- Work in a safe environment
- Access medical insurance
- File complaints with labor courts
- Transfer jobs legally under certain conditions
Common Labor Law Violations
- Salary delays
- Excessive working hours
- No written contract
- Denial of leave
- Illegal termination
Employees can report violations through official channels.
How to Protect Yourself as an Employee
- Read contracts carefully
- Keep copies of documents
- Track salary payments
- Know your legal rights
- Avoid illegal work arrangements
FREQUENTLY ASKED QUESTIONS
Does Saudi labor law apply to expats?
Yes. Saudi labor law protects both expats and Saudi nationals.
Can employers delay salary payments?
No. Salaries must be paid on time through the Wage Protection System.
Is overtime mandatory?
No. Overtime requires employee consent and compensation.
CONCLUSION
Understanding Saudi labor law for employees helps you work confidently and legally in the Kingdom. By knowing your rights related to contracts, working hours, leave, and end-of-service benefits, you can protect yourself from unfair practices and build a secure career in Saudi Arabia in 2026.
