Before you read: This page summarizes Saudi Labor Law (Royal Decree No. M/51) and its amendments, for general informational purposes only. Regulations are periodically updated by ministerial resolution, especially social-insurance contribution rates and special-leave durations. Always verify the current official version via the Ministry of Human Resources and Social Development (HRSD) or the General Organization for Social Insurance (GOSI). This content is not a substitute for professional legal advice in an actual dispute.
An employment contract in Saudi Arabia is more than an agreement on a monthly salary — labor law grants you specific rights that your employer cannot waive, even if you agree to it in writing. This guide explains 20 rights, with the exact number and a real worked example for each.
All 20 Rights at a Glance
1. End-of-Service Award
The single most-searched right, calculated two different ways depending on why the contract ended:
If ended by the employer (or contract expiry without renewal): half a month's last wage for each of the first 5 years of service, then a full month's wage for each year after that.
If the employee resigns: one-third of the award for 2-5 years of service, two-thirds for 5-10 years, and the full award for 10+ years.
Example: An employee earning 10,000 SAR base salary whose employer ends the contract after 7 years: (5 years × half-month = 25,000) + (2 years × full month = 20,000) = 45,000 SAR end-of-service award.
Articles 84-87 of Saudi Labor Law. See the full guide above for more scenarios, or the Arabic deep-dive with 4 worked examples.
2. Annual Leave
Every employee is entitled to fully paid annual leave, increasing with tenure:
21 days per year for the first 5 years with the same employer, rising to 30 days per year after completing 5 continuous years.
Example: An employee who has completed 6 years with the same company is entitled to 30 paid leave days in year 7, instead of 21.
Article 109 of Saudi Labor Law.
3. Working Hours
The law sets a hard ceiling on working hours, with a special reduction during Ramadan:
8 hours per day or 48 hours per week maximum under normal conditions. Reduced to 6 hours per day (36 hours per week) for Muslim employees during Ramadan.
Example: An employee regularly working 9 hours a day outside Ramadan is owed overtime pay for that extra hour daily - it is not simply "part of the job."
Article 98 of Saudi Labor Law.
4. Overtime Pay
Any hour worked beyond the legal limit must be paid at a premium, not the regular rate:
Overtime hourly rate = regular hourly rate + 50% (i.e. 150% of the base hourly wage).
Example: If the regular hourly rate is 25 SAR, the overtime rate = 25 + (25 × 50%) = 37.5 SAR per hour.
Article 107 of Saudi Labor Law.
5. Probation Period
Probation has a hard cap and cannot be extended indefinitely:
90 days maximum by default, extendable to 180 days maximum with an explicit written agreement between employee and employer before the first 90 days end.
Example: A contract that doesn't explicitly state a probation period, or states one exceeding 180 days, is treated legally as if probation ended at the statutory maximum.
Article 53 of Saudi Labor Law.
6. Sick Leave
Sick leave is split into 3 tiers with decreasing pay, not a flat rate:
First 30 days: full pay (100%). Next 60 days: 75% of wage. Final 30 days (out of 120 total per service year): unpaid.
Example: An employee sick for 50 consecutive days gets full pay for the first 30 days, and 75% pay for the remaining 20 days.
Article 117 of Saudi Labor Law.
7. Maternity & Paternity Leave
A core right for working mothers, with a more recent addition for fathers:
10 weeks (70 days) of fully paid maternity leave, distributable before and after birth per the employee's preference within regulatory limits. Fathers are additionally entitled to 3 days of paid paternity leave upon the birth of a child.
Important: Full-eligibility conditions (such as minimum tenure) may vary, so confirm current details via Qiwa or HRSD directly before planning leave.
Article 151 onward of Saudi Labor Law, and its amendments.
8. Notice Period Before Contract Termination
Neither party can end an unlimited-term contract abruptly without advance notice:
At least 60 days' notice if wages are paid monthly, and at least 30 days otherwise - unless the contract specifies a longer period.
Example: A company ending a monthly-paid employee's contract without 60 days' notice, or without paying compensation for the shortfall, is in breach of its statutory obligation.
Article 75 of Saudi Labor Law.
9. Weekly Rest Day
An employee cannot be worked without a full rest day each week:
At least one fully paid rest day per week, at least 24 consecutive hours, normally Friday - except in shift-based activities, where the rest day can be swapped by agreement.
Example: A retail employee on a shift rotation can have Tuesday as their weekly rest day instead of Friday, as long as they actually get 24 consecutive hours off each week.
Article 104 of Saudi Labor Law.
10. Marriage Leave
A short, fully paid leave entitlement on marriage:
5 days of fully paid leave when the employee themselves gets married.
Example: An employee getting married is entitled to 5 paid days separate from their annual leave balance - it is not deducted from the 21-30 annual days.
Saudi Labor Law - special leave provisions.
11. Bereavement Leave
Paid leave upon the death of a close family member:
5 days of fully paid leave upon the death of a spouse, parent, or child.
Example: An employee whose parent passes away is entitled to 5 immediate paid days, separate from their annual leave balance.
Saudi Labor Law - special leave provisions.
12. Hajj Leave
A unique entitlement usable only once across an employee's entire working life:
Paid leave to perform Hajj, ranging from 10 to 15 days, granted only once across an employee's entire service with all employers, provided they have not previously performed Hajj and meet a minimum tenure (typically 2 continuous years with the current employer).
Important: If an employee has already used this right with a previous employer, they are not entitled to it again with a new one.
Saudi Labor Law - Hajj leave provisions.
13. Cooperative Health Insurance
Not an optional company perk - a legal obligation on the employer:
The employer must provide health insurance for the employee under the Cooperative Health Insurance system from day one of employment, meeting the minimum coverage set by the Council of Health Insurance.
Example: A company delaying a new hire's health insurance registration beyond the statutory grace period is in violation, even if the employee is still in probation.
Article 144 of Saudi Labor Law, and the Cooperative Health Insurance Law.
14. Protection From Arbitrary Dismissal
A contract cannot be ended without a legitimate legal reason - and if it is, the employee is compensated:
If termination of an unlimited-term contract is arbitrary (not one of the specific reasons listed exclusively in Article 80), the employee is entitled to compensation typically valued at 15 days' wage per year of service, with a minimum of two months' wage - the exact amount set by the competent authority (labor office or labor court) based on the case. This is in addition to, not instead of, the employee's other full entitlements (end-of-service award and notice pay).
Example: An employee earning 8,000 SAR/month, arbitrarily dismissed after 6 years without documented cause: estimated compensation = 6 × (8,000 ÷ 30 × 15) = 6 × 4,000 = 24,000 SAR, in addition to the full end-of-service award and notice pay.
Article 77 of Saudi Labor Law.
15. Right to a Signed Contract Copy
An employment contract is not a mere formality, and the employee has a full right to a copy of it:
The employment contract must be written and registered on the Qiwa platform, and the employee has the right to a signed copy immediately upon signing, clearly stating wage, job nature, and contract duration.
Example: A company that refuses to hand over a contract copy, or relies on a verbal salary promise never documented in the registered contract, weakens the employee's legal standing in any future dispute.
Article 51 of Saudi Labor Law.
16. Wage Deduction Limits
An employer does not have unlimited authority to deduct any amount from your pay:
A disciplinary deduction (a penalty for a violation) cannot exceed 5 days' wage in a single month, and total monthly deductions (for all reasons combined) cannot exceed a legally protected share of the wage, to guarantee the employee a minimum living income.
Example: A company deducting a full 10 days' wage from an employee's salary in one month as a penalty for a single violation exceeds the statutory 5-day cap.
Saudi Labor Law - disciplinary penalty provisions.
17. Right to Be Heard Before Discipline
An employee cannot be penalized without first being given a chance to respond:
Before any disciplinary penalty (a warning or deduction), the employee must be informed in writing of the alleged violation, heard, and have their defense recorded, before a final decision is made.
Example: A salary-deduction notice that reaches an employee without ever asking them to explain their side is procedurally invalid, regardless of whether the underlying violation actually occurred.
Article 66 of Saudi Labor Law.
18. Protection From Unilateral Relocation
Your employer does not have unlimited freedom to change your work location:
An employee cannot be relocated to a workplace requiring a change of residence without their written consent, unless the contract explicitly allows transfer between cities or branches.
Example: An employee on a contract silent on relocation, asked to move from Riyadh to Jeddah and refusing, has the right to refuse without it being treated as job abandonment or grounds for disciplinary dismissal.
Article 60 of Saudi Labor Law.
19. Pay for Working on a Rest Day or Public Holiday
If you're asked to work on your rest day, it isn't at your usual rate:
If work requirements mean an employee works on their weekly rest day or a public holiday, they are entitled to a substitute rest day, plus a 50% pay premium above their usual wage for that day.
Example: An employee earning 300 SAR/day asked to work on National Day is owed 300 + (300 × 50%) = 450 SAR for that day, plus a substitute rest day.
Article 106 of Saudi Labor Law.
20. Paid Public Holidays
Separate from annual leave, there are fully paid public holidays for all employees:
These include Eid al-Fitr, Eid al-Adha, National Day (September 23), and Founding Day (February 22), with exact durations set annually by Council of Ministers decision.
Important: These holidays are not deducted from the employee's annual leave balance, and are owed in full regardless of nationality or contract type.
Saudi Labor Law and annual Council of Ministers decisions on public holidays.
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