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Understanding Saudi Labor Law is not optional for expats working in the Kingdom. Your rights to fair wages, leave, termination protections, and end-of-service benefits all flow from this law. This guide covers the key provisions every foreign worker must know.
Saudi Labor Law (Royal Decree No. M/51, issued under Council of Ministers Resolution No. 219) is the primary legislation governing employment relationships in the Kingdom. It applies to all workers in Saudi Arabia, including expats, with limited exceptions for domestic workers, the employer's family members, and certain agricultural workers.
As an expat, the Labor Law is your legal shield. It defines your maximum working hours, your right to paid leave, what happens when your contract ends, how much end-of-service benefit you receive, and under what circumstances you can be dismissed. Many expats arrive in Saudi Arabia without reading the Labor Law and later find themselves at a disadvantage when disputes arise.
The law is administered by the Ministry of Human Resources and Social Development (MHRSD) and enforced through the Labor Courts. Key points that every expat should understand from day one:
Under Saudi law, it is illegal for your employer to confiscate your passport. Despite this, the practice remains common. If your employer takes your passport, you can file a complaint with the Labor Office or police. However, many expats tolerate it to avoid conflict with their sponsor. Our strong recommendation: insist on retaining your passport and keep a photocopy of all documents in a secure location your employer cannot access.
The full text of Saudi Labor Law is available in English on the Ministry of Human Resources website (hrsd.gov.sa) and through the Saudi Legal Portal (laws.boe.gov.sa). We recommend downloading and saving a copy for reference. The law has 245 articles organized into 16 chapters covering everything from employment contracts to workplace safety.
Saudi Labor Law has undergone significant amendments in 2025-2026 as part of the Kingdom's ongoing labor market reforms. These changes primarily aim to improve worker protections, increase labor market flexibility, and align regulations with Vision 2030 goals. Key amendments affecting expats include:
The Wage Protection System (WPS) has been strengthened with stricter penalties for late salary payments. Employers who fail to pay wages within 7 days of the due date now face automatic penalties through the MHRSD system. Repeated violations can result in suspension of the company's ability to hire new workers and financial fines of up to 10,000 SAR per affected employee.
A key 2025 amendment clarified that all employment contracts for non-Saudi workers are considered fixed-term contracts tied to the duration of the work permit. If a contract does not specify an end date, the work permit expiry date is treated as the contract end date. This resolved previous ambiguity about whether expats could hold open-ended (indefinite) contracts.
The labor mobility initiative introduced in 2021 has been expanded. Workers can now transfer to a new employer without their current employer's consent if the employer has failed to pay wages for 3+ months (previously required a formal complaint), or if the employment contract has expired and was not renewed within 60 days. This gives expats more freedom to leave abusive or non-compliant employers.
Employers with 50+ workers must now allow employees at least 5 days paid leave per year for professional development and training. This applies to expats as well. The training must be documented, and employers who deny this leave without justification face penalties.
The 2025 amendments explicitly prohibit workplace discrimination based on race, color, sex, age, disability, or marital status. While enforcement mechanisms are still developing, workers can now cite anti-discrimination provisions when filing labor complaints. This was previously implied but not explicitly stated in the law.
Non-compete agreements are now limited to a maximum of one year after contract termination (reduced from two years). The clause must also be limited to a specific geographic area and type of work. Courts will void non-compete clauses that are deemed excessively broad or punitive.
Labor Law amendments apply to all existing employment contracts from their effective date, even if your contract was signed before the amendment. You do not need to sign a new contract to benefit from improved protections. However, if your contract provides better terms than the law requires, the contract terms prevail (the law sets the minimum floor, not the ceiling).
Saudi Labor Law sets clear limits on working hours. These are maximum limits and cannot be exceeded regardless of what your contract says. Any contract clause requiring you to work beyond legal maximums is void.
| Parameter | Standard | During Ramadan |
|---|---|---|
| Maximum daily hours | 8 hours | 6 hours |
| Maximum weekly hours | 48 hours | 36 hours |
| Working days per week | 6 days maximum | 6 days maximum |
| Mandatory rest day | Friday (can be changed with MHRSD approval) | Friday (can be changed with MHRSD approval) |
Workers cannot be required to work more than 5 consecutive hours without a break. Breaks for rest, prayer, and meals must total at least 30 minutes per dayand are not counted as working hours. During the break, the employee must not remain under the employer's authority. In practice, most Saudi workplaces observe generous breaks around prayer times, with the afternoon break (between Dhuhr and Asr prayers) often lasting 1-2 hours.
Any work beyond 8 hours per day (or 48 hours per week) is considered overtime. Key overtime rules:
Many expats, especially in mid-level corporate roles, work significant overtime without additional compensation. Some employers argue that overtime is "included in your salary" or that salaried workers are exempt. Under Saudi law, only senior executives, managers with actual authority, and certain categories of workers (defined by ministerial decision) are exempt from overtime provisions. If your contract includes a blanket overtime waiver, it may not be enforceable. Document your hours worked and keep records.
During the month of Ramadan, working hours are reduced to a maximum of 6 hours per day or 36 hours per week for Muslim workers. This reduction applies by law and does not result in any salary deduction. In practice, most Saudi employers apply reduced Ramadan hours to all employees regardless of religion, though non-Muslim workers are not legally entitled to the reduction. Many companies shift to morning-only schedules during Ramadan (typically 10 AM to 4 PM or similar).
Saudi Labor Law provides comprehensive leave entitlements. Your employer cannot offer less than what the law mandates, though they can offer more.
Saudi Arabia observes the following official paid holidays:
If a public holiday falls on your rest day, you are entitled to a compensatory day off. Workers required to work on public holidays must receive their daily wage plus 150% overtime pay.
| Leave Type | Duration | Pay |
|---|---|---|
| Sick leave | Up to 120 days per year | First 30 days: 100% | Next 60 days: 75% | Last 30 days: unpaid |
| Marriage leave | 5 days | Full pay |
| Death of spouse/family member | 5 days | Full pay |
| New baby (father) | 3 days | Full pay |
| Maternity leave | 10 weeks (4 before + 6 after birth) | Full pay (if 1+ year service) or half pay |
| Hajj leave | 10-15 days (once during employment) | Full pay (for Muslim workers with 2+ years service) |
| Exam leave | Duration of exams | Full pay (if employer-approved study program) |
While not technically "leave," many expat contracts include annual return tickets to the home country. This is not a legal requirement under the Labor Law but is a standard contractual benefit. Your contract should specify whether you receive annual tickets for yourself and dependents. If it is in your contract, it is legally binding and enforceable.
Articles 80 and 81 are the two most critical provisions for expats to understand. Article 80 defines when your employer can fire you without notice or compensation. Article 81 defines when you can leave your employer without notice and still retain all your rights. These articles form the backbone of termination law in Saudi Arabia.
Your employer can dismiss you immediately, without notice and without end-of-service benefits, only in the following specific cases:
The burden of proof falls on the employer to demonstrate that one of the Article 80 grounds applies. If your employer fires you citing Article 80 but cannot prove the specific violation, the termination is considered arbitrary (unfair dismissal). In this case, you are entitled to your full end-of-service benefits pluscompensation for arbitrary dismissal (typically equal to the remaining wages on a fixed-term contract, or two months' wages per year of service on an indefinite contract).
Article 81 is your protection. You can leave your employer immediately, without giving notice, and still retain all your rights (including end-of-service benefits) if:
If you intend to invoke Article 81, document everything first. Keep copies of unpaid salary records, screenshots of communications showing harassment or dangerous conditions, and written requests you made to your employer about the issue. When you file with the Labor Office, documented evidence is far more powerful than verbal claims. The strongest Article 81 cases involve unpaid wages (easy to prove through bank records) or documented unsafe conditions.
When termination does not fall under Article 80 or 81 (i.e., normal end of employment), the following notice rules apply:
End of Service Benefits (EOSB) are one of the most important financial rights for expats in Saudi Arabia. Unlike pension systems in many countries, Saudi Arabia requires employers to pay a lump-sum gratuity to workers upon termination of employment, regardless of the reason for termination (with limited exceptions under Article 80).
The EOSB is calculated based on your last basic salary (including housing allowance if part of the contract):
An expat who worked for 8 years with a final salary of 15,000 SAR/month:
Use our EOSB Calculator to compute your exact entitlement based on your salary and years of service.
The amount you receive depends on how your employment ends:
| Scenario | EOSB Entitlement |
|---|---|
| Contract expires and is not renewed | Full EOSB (100%) |
| Employer terminates (not under Article 80) | Full EOSB (100%) |
| Employee resigns after 5+ years | Full EOSB (100%) |
| Employee resigns (2-5 years of service) | Two-thirds of EOSB (66.7%) |
| Employee resigns (less than 2 years) | No EOSB (0%) |
| Employee leaves under Article 81 (employer fault) | Full EOSB (100%) |
| Female employee resigns within 6 months of marriage | Full EOSB (100%) |
| Terminated under Article 80 (employee fault) | No EOSB (0%) |
Your employer must pay EOSB within one week of contract termination if the employer initiated the termination, or within two weeks if the employee resigned. If your employer delays beyond this, you can file a complaint with the Labor Office. The employer may deduct any legitimate debts you owe them from the EOSB amount, but must provide documentation of such debts.
For a detailed breakdown of how EOSB works, including the interaction with GOSI contributions, see our dedicated EOSB guide. You can also calculate your exact entitlement using the End of Service Calculator.
Saudi Labor Law recognizes several types of employment contracts. For expats, the type of contract you hold has significant implications for termination rights, renewal expectations, and exit procedures.
The vast majority of expat contracts in Saudi Arabia are fixed-term contracts, typically for 1-2 years aligned with the work permit duration. Key characteristics:
Less common for expats but possible. An indefinite contract has no fixed end date. Since the 2025 amendment, expat contracts without a specified end date are treated as fixed-term contracts ending on the work permit expiry date. However, contracts explicitly stating "indefinite" and renewed work permits create a quasi-indefinite arrangement. These provide:
Common in construction, engineering, and consulting. The contract is tied to a specific project's completion rather than a calendar date. It terminates when the project ends. Workers on project contracts receive EOSB based on total project duration.
Governed by specific regulations allowing workers to work fewer than standard hours. Part-time workers receive proportional benefits based on hours worked. Part-time contracts have become more common since 2020, particularly in retail and education sectors.
Saudi Labor Law requires all employment contracts to be in writing. An employer cannot legally employ you without a written contract. If you are working without one, you are still protected by the law (the employment relationship is recognized regardless), but proving the specific terms of your agreement becomes much harder in disputes. Insist on receiving your signed contract before starting work, and keep a copy in a safe location.
Under Article 52, every employment contract must include:
Any benefits mentioned in your offer letter or contract (housing, transport, education, flights) become legally binding once you sign. Your employer cannot unilaterally reduce or remove these benefits without your written consent.
Non-compete clauses (Article 83) are common in Saudi employment contracts, particularly for senior roles and positions with access to confidential information. Understanding the legal limits is essential before you sign.
Under Saudi Labor Law, a non-compete clause is only enforceable if it meets all of the following conditions:
Saudi courts will not enforce a non-compete clause if:
Most non-compete clauses in Saudi contracts are drafted broadly and may not be fully enforceable. If you are leaving Saudi Arabia entirely, enforcement becomes practically impossible regardless of what the contract says, as Saudi courts have limited jurisdiction abroad. However, if you plan to stay in the Kingdom and move to a competitor, a properly drafted non-compete clause can be enforced through the Saudi courts. Negotiate the scope of non-compete clauses before signing, especially regarding geographic scope and the specific activities covered. If you are offered a new work visa with a competitor, the previous employer would need to actively pursue legal action to enforce the clause.
If your employer violates your rights under Saudi Labor Law, you have legal recourse. The system has improved significantly in recent years, with dedicated labor courts and online complaint mechanisms making it more accessible for expats.
All labor disputes must first go through an amicable settlement attempt at the Labor Office. The process:
If amicable settlement fails, the dispute goes to the Labor Court (part of the Saudi judicial system since 2018). Key facts:
You must file your labor complaint within 12 months of the disputed event (e.g., 12 months from the date of termination, or from the date salary was due but unpaid). After this period, your claim may be time-barred. Do not delay.
One of the biggest challenges for expats is filing a labor complaint when your employer has already initiated your exit visa. You can still file a complaint and request the Labor Office to suspend your exit until the dispute is resolved. The court can issue a travel ban prevention order to keep you in the country until your case is heard. However, this process can be stressful and requires prompt action.
Document everything from day one. Keep copies of your contract, pay slips, correspondence with your employer, and any evidence of violations. If you anticipate a dispute (e.g., your employer starts paying late or threatens unfair termination), begin collecting evidence immediately. Many cases are won or lost based on documentation. Also consider consulting a Saudi labor lawyer before filing; initial consultations are often free and can help you understand the strength of your case.
Labor complaints can be filed online through the Ministry of Human Resources portal (hrsd.gov.sa) or through the Qiwa platform. The online system is available in Arabic and English. You will need your Iqama number, employer's Commercial Registration number, and details of your complaint. The system generates a case number for tracking progress.
Saudi Labor Law attempts to balance the rights of both workers and employers. Understanding both sides helps you know where you stand and what you can legitimately expect or challenge.
Regardless of what your contract says or what is culturally common, your employer cannot legally:
There is often a gap between what the law says and what happens in practice. Some employers, particularly smaller companies, may not fully comply with labor law provisions. The Saudization system and improved government enforcement have reduced violations, but they still occur. Knowing your rights puts you in a stronger position to push back or seek legal remedy when violations occur. The key is documentation and willingness to use the complaint system.
It depends on the circumstances. Under Article 80 of Saudi Labor Law, your employer can terminate you without notice or compensation only in specific cases: if you assault your employer or manager, fail to perform essential duties after a written warning, commit misconduct or dishonesty, deliberately cause material loss to the employer, resort to forgery, is absent for more than 30 days in a year or 15 consecutive days without legitimate reason, or discloses confidential business information. Outside these cases, your employer must provide written notice (at least 60 days for monthly-paid workers) and pay your full end-of-service benefits. If you believe you were terminated without valid cause under Article 80, you can file a complaint with the Labor Office within 12 months of termination.
Under Saudi Labor Law (Article 109), you are entitled to 21 days of paid annual leave for the first five years of continuous service with the same employer. After completing five years of service, your entitlement increases to 30 days per year. Annual leave cannot be waived or replaced with monetary compensation while you are still employed, though your employer can schedule when you take it based on business needs. You must take at least 5 consecutive days per leave period. Additionally, you are entitled to all official public holidays declared by the government (typically 10-13 days per year covering Eid al-Fitr and Eid al-Adha), plus sick leave of up to 120 days per year (first 30 days at full pay, next 60 days at 75% pay, and remaining 30 days unpaid).
Article 80 is one of the most important provisions in Saudi Labor Law for expat workers. It lists the specific situations in which an employer can terminate an employee without notice and without paying end-of-service benefits or compensation. The article contains nine grounds for summary dismissal, including assault on the employer, failure to perform duties after warning, proven misconduct, deliberate damage to company property, forgery, unjustified absence exceeding 30 days annually or 15 consecutive days, unauthorized disclosure of trade secrets, and being found to have obtained the position through fraud. Critically, Article 80 also protects workers: if an employer terminates you for a reason NOT listed in Article 80, the termination may be considered arbitrary, entitling you to compensation of up to two months' wages for each year of service in addition to your standard end-of-service benefits.
Yes. Any worker in Saudi Arabia, including expats, can file a labor complaint through the Ministry of Human Resources and Social Development (MHRSD). The process starts online through the MHRSD portal or the Musaned/Qiwa platforms. First, an amicable settlement is attempted through the Labor Office within 21 days. If that fails, the case is referred to the Labor Court. You can file complaints about unpaid wages, unfair termination, withheld end-of-service benefits, contract violations, unsafe working conditions, or any violation of your labor law rights. You must file within 12 months of the disputed event. You do not need a lawyer for initial filings, though legal representation is recommended for court proceedings. Importantly, filing a complaint does not require your employer's permission, and your employer cannot terminate you for filing a legitimate complaint.
No, the Saudi Labor Law (Royal Decree M/51) does not apply to domestic workers (drivers, housemaids, personal cooks, gardeners, nannies, and similar household workers). Domestic workers are governed by a separate set of regulations under the Household Regulations issued by the Ministry of Human Resources. These regulations provide some protections including the right to daily rest of at least 9 hours, a paid day off per week, one month paid leave after two years of service, medical care, and end-of-service benefits. However, the protections are less comprehensive than those under the main Labor Law. Domestic workers can file complaints through the Musaned platform if their rights under the Household Regulations are violated. The distinction is important: if you work in someone's private home, you fall under Household Regulations rather than the Labor Law.
