The Saudi Labor Law after the 2025 Amendments: A Comprehensive Guide to Employee Rights and Employer Obligations

What Is the Saudi Labor Law and Who Is Subject to It?

The Labor Law is the law issued by Royal Decree No. (M/51) dated 23/8/1426H. It governs every contract under which a person undertakes to work for an employer, under the employer’s management or supervision, in return for a wage. It applies to Saudi and non-Saudi employees in private-sector establishments, regardless of the size of the establishment.

The Law excludes specific categories set out in Article 7, most notably domestic workers and similar categories, whose relationship is governed by special regulations. Government employees are also subject to the civil service laws, not the Labor Law. An important rule is that the Law’s provisions represent a minimum level of rights, so any contractual term that contravenes them and diminishes the employee’s rights is void, unless the term is more beneficial to the employee.

The Law does not operate alone; alongside it are its Implementing Regulations, issued in updated form with the recent amendments, ministerial decisions regulating topics such as Saudization, flexible work and remote work, then each establishment’s internal work regulations, and finally the employment contract itself. In case of conflict, the statutory text prevails, then the regulations, then the contract, with the rule of the term more favorable to the employee remaining in effect at every level. Understanding a right is therefore not complete by reading the contract alone, but by checking it against the Law and the establishment’s approved regulations.

What Are the Key 2025 Labor Law Amendments?

The amendments were issued by Royal Decree No. (M/44) dated 8/2/1446H, based on Council of Ministers Resolution No. (117), and took effect on 20/8/1446H, corresponding to February 19, 2025. They amended 38 articles, repealed 7 articles, and added two articles.

• Setting the maximum total probation period at one hundred and eighty days.
• A notice period of 30 days if the employee terminates an indefinite-term contract, and 60 days if the employer terminates it.
• Regulating resignation in writing, and deeming it accepted after 30 days without a response.
• Increasing maternity leave to twelve weeks with full pay.

To read each amendment and compare it with the previous text, see the explanation of the 2025 Labor Law amendments.

In practice, after the amendments, establishments need to review their contract templates and internal regulations, especially the clauses on probation, notice, resignation and leave, because a clause that falls below the statutory minimum is not applied even if the employee signed it. Employees, in turn, need to read their contracts in light of the amended text, not based on what they were used to in previous contracts, as notice periods and the rules on accepting resignations have changed.

What Are the Types of Employment Contract and How Is the Probation Period Set?

There are two types of employment contract: a fixed-term contract, which ends when its term expires, and an indefinite-term contract, which continues until one party terminates it in accordance with the Law. The contract is written in two copies, one for each party, but the absence of a written contract does not extinguish the employee’s rights, as the employee may prove the contract and their rights by all means of evidence. As a rule, a non-Saudi employee’s contract must be written and for a fixed term.

Article 55 governs the expiry and renewal of a fixed-term contract, and sets out the cases in which it becomes an indefinite-term contract if both parties continue to perform it after it expires. As for probation, Article 53, as amended, requires it to be expressly stated in the contract with its duration clearly specified, provided that its total does not in any case exceed one hundred and eighty days. Either party may terminate the contract during it, unless the contract contains a provision giving the right of termination to only one of them. For details on contract clauses and what to review before signing, read the guide to employment contracts under Saudi law.

What Are the Working Hours Under the Saudi Labor Law?

An employee may not be required to work more than eight hours a day if the employer adopts the daily standard, or more than forty-eight hours a week if it adopts the weekly standard. During Ramadan, working hours for Muslim employees are reduced to six hours a day or thirty-six hours a week.

• Working hours include one or more breaks for rest, prayer and meals, each of no less than half an hour, and an employee may not work more than five consecutive hours without one.
• Friday is the default weekly rest day, and it may be replaced with another day after notifying the competent authority.
• Overtime is paid at an additional wage equal to the hourly wage plus fifty percent of the basic wage, under Article 107.

Certain categories and cases specified by the Law and its Regulations are excepted from the maximum working hours, such as preparatory or supplementary work, and cases of necessity to prevent an accident or repair its consequences. Proof is a practical matter here: attendance records and messages assigning work outside working hours are what an employee relies on when claiming overtime pay, and what an employer needs to prove compliance with the statutory limits.

What Leave Does the Labor Law Provide?

An employee is entitled to annual leave of no less than twenty-one days, increased to thirty days after five consecutive years with the employer. It is paid in advance, and it may not be waived in exchange for cash compensation during service. If the relationship ends before the leave is used, the employee is entitled to pay for the accrued days.

• Sick leave: Thirty days with full pay, then sixty days at three-quarters pay, then thirty days without pay within a single year.
• Maternity leave: Twelve weeks with full pay following the 2025 amendments.
• Occasion leave: Short paid leave for marriage, the birth of a child and bereavement, with durations set by Article 113.
• Exam leave: For an employee enrolled in an educational institution, according to the actual exam days and subject to the statutory conditions.

The employer may set the dates of annual leave according to work conditions, and may postpone it under conditions specified by the Law. When the relationship ends, disputes often arise over the number of accrued leave days and the basis for calculating the payment in lieu, so it is advisable to keep approved leave forms and proof of the leave balance.

How Does the Law Protect the Employee’s Wage?

The wage is the employer’s most important obligation, and it must be paid in the official currency on its statutory dates; employees paid monthly must receive their wages at least once a month. The Ministry of Human Resources and Social Development monitors regular payment through the Wage Protection Program, which links bank-transferred salary data with contract data.

The employer may not make deductions from the wage except in the cases specified by the Law and at the permitted rates, such as recovering a loan or enforcing a court judgment. Repeated delays in paying the wage or reducing it without legal basis are considered a material breach of the contract that may give the employee the right to leave work while retaining their rights under Article 81. Employees are advised to keep account statements and payroll records, as they are the first documents requested when claiming late wages.

How Does an Employment Contract End? Notice, Resignation and Articles 77 and 80

Article 74 sets out the cases in which the contract ends, including agreement of the parties with the employee’s written consent, expiry of the term, resignation, reaching retirement age, force majeure, and permanent closure of the establishment. For an indefinite-term contract, written notice is required under Article 75: 30 days if the employee terminates, and 60 days if the employer terminates. A party that fails to give notice must compensate the other party with an amount equal to the wage for the notice period.

Resignation is governed by Article 79: it is submitted in writing and deemed accepted if thirty days pass without a response, and the employer may postpone accepting it for a period not exceeding sixty days if the interest of the work so requires. If the employer terminates the contract for an illegitimate reason, the employee is entitled to the compensation set out in Article 77, detailed in the explanation of Article 77 of the Labor Law.

Conversely, Article 80 allows the employer to terminate the contract without end-of-service benefit, notice or compensation in specific, exhaustively listed cases, such as assault, breach of essential obligations after a written warning, or absence without a legitimate reason for the periods specified, provided the employee is given the opportunity to state the reasons for their objection. The cases and their conditions are covered in the explanation of Article 80 of the Labor Law.

The most important points to review in any termination are: who terminated the contract, by what instrument, whether it was preceded by written notice or warning, and whether the reason stated in the letter is supported by documents. A termination letter that states no reason, or a reason without evidence, is usually the starting point of compensation disputes.

How Is the End-of-Service Benefit Calculated?

The end-of-service benefit is due under Article 84: half a month’s wage for each of the first five years, and a full month’s wage for each year thereafter, based on the last wage, with part of a year calculated proportionally.

• Upon resignation (Article 85): No benefit before two years of service, one-third of the benefit from two to less than five years, two-thirds from five to less than ten years, and the full benefit after ten years.
• Full entitlement (Article 87): If the employee leaves work due to force majeure beyond their control, or if a female employee terminates the contract within six months of marriage or three months of giving birth.
• Payment deadline (Article 88): Within one week of the end of the relationship if the employer ended it, and within two weeks if the employee ended it.

To estimate the amount based on length of service and reason for termination, you can use the end-of-service benefit calculator, bearing in mind that the result is an estimate and that determining the last wage may be disputed.

How Is a Labor Dispute Filed? From Wadi to the Labor Court

A labor dispute begins with a request for amicable settlement at the Ministry of Human Resources and Social Development, and the settlement stage lasts twenty-one working days from the first session. If settlement is not possible, the file is referred electronically to the competent labor court. Independent labor courts operate in seven cities, and labor circuits operate within the general courts in other cities and governorates.

• Prepare the contract, payroll records, correspondence and the termination or resignation letter before submitting the request.
• Specify each claim with its amount and method of calculation: late wages, Article 77 compensation, end-of-service benefit, or leave pay.
• Bear in mind that Article 222 does not permit a claim to be heard after twelve months from the end of the employment relationship.

The steps of the first stage are explained in detail on the amicable settlement of labor disputes page. Where needed, you can request a consultation to review documents and assess claims before submitting the request.

This route is not limited to employees; employers can also request settlement and claim their rights, such as compensation for breach of the notice period or recovery of custody items and tools handed to the employee. In both cases, a strong file is built on documents contemporaneous with the facts rather than later accounts, and on specific claims on which the court can rule.

Frequently asked questions

When Did the New Labor Law Amendments Take Effect?

The amendments took effect on February 19, 2025, corresponding to 20/8/1446H, under Royal Decree No. (M/44) dated 8/2/1446H. They amended 38 articles, repealed 7 articles and added two articles, most notably the provisions on probation, notice, resignation and maternity leave.

What Is the Maximum Probation Period Under the Saudi Labor Law?

The total probation period may not exceed one hundred and eighty days under Article 53, as amended, and it must be expressly stated in the contract with its duration clearly specified. Either party may terminate the contract during it unless the contract grants this right to only one of them.

What Is the Notice Period for Terminating an Indefinite-Term Contract?

Thirty days if the employee terminates, and sixty days if the employer terminates, under Article 75 as amended. A party that does not observe the notice period pays the other party compensation equal to the employee’s wage for the notice period or the remainder of it.

Can an Employee Leave Work Without Notice?

Yes, in the cases specified in Article 81, such as the employer’s failure to fulfill its essential obligations, assault on the employee, or assigning the employee work substantially different from what was agreed, in which case the employee retains their full statutory rights. It is advisable to document the reason in writing before leaving work.

Am I Entitled to an End-of-Service Benefit If I Resign?

This depends on length of service under Article 85: no benefit before two years, one-third from two to less than five years, two-thirds from five to less than ten years, and the full benefit after ten years. The full benefit is due in the cases under Article 87 even if the employee is the one who left.

What Is the Deadline for Filing a Labor Claim?

A labor claim is not heard after twelve months from the date the employment relationship ended, under Article 222 of the Labor Law. The process begins with a request for amicable settlement at the Ministry of Human Resources, followed by referral to the labor court if settlement is not possible.