The Saudi Labour Law governs employer-employee relationships in the private sector. Non-compliance results in fines, disputes, and business restrictions.
Employment Contracts
Every employee must have a written contract in Arabic specifying job title, wage, workplace, duration, and probation period.
Working Hours
Standard: 48 hours per week. During Ramadan: 36 hours for Muslim employees. Overtime at 150% of hourly wage.
Leave Entitlements
Annual leave: 21 days, increasing to 30 after five years. Sick leave: up to 120 days. Maternity: 10 weeks. Paternity: 3 days.
End of Service Benefits
After two years: half a month salary per year for the first five years, one month per year thereafter. Based on last wage.
Saudization
All private sector companies must maintain minimum percentages of Saudi nationals under the Nitaqat system. Non-compliance restricts visa processing and government services.
If you need help applying these rules to your situation, consider our HR advisory service.
