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Saudi Arabia Labor Law for Expats — Employee Rights & Key Rules

Saudi Arabia's Labor Law governs the rights and obligations of all workers in the private sector, including expat residents. It covers employment contracts, working hours, annual leave, gratuity (end-of-service benefit), termination rights, and dispute resolution. Understanding your basic rights under Saudi labor law protects you from unfair treatment and ensures you know what you are entitled to.

Highlights

  • ★Saudi Arabia's Labor Law applies to all private-sector workers regardless of nationality — expats have the same core rights as Saudi nationals in employment matters.
  • ★End-of-service gratuity (EOSB) is a legally mandated payment when you leave a job — equivalent to half a month's salary per year for the first 5 years, and one full month per year after that.
  • ★Annual leave entitlement: 21 days/year for the first 5 years of service, increasing to 30 days/year after 5 years.
  • ★Maximum working hours: 8 hours/day (48 hours/week). During Ramadan, working hours reduce to 6 hours/day for Muslim employees.
  • ★The Wage Protection System (WPS) requires employers to pay salaries electronically on time — delays are a labor law violation.
  • ★Labor disputes can be filed through the Ministry of Human Resources (MHRSD) — the process is free and accessible via the Musaned or MHRSD portals.

Who Is This For?

Expat workers and new residents in Saudi Arabia who want to understand their rights under Saudi labor law — including leave entitlements, end-of-service benefits, and what to do in a workplace dispute.

Practical Tips

  • 💡Always have a written employment contract in Arabic (the Arabic version is the legally binding one) — keep a copy in a safe place outside Saudi Arabia.
  • 💡Your end-of-service gratuity is calculated on your last basic salary, not your total package including allowances — verify what counts as 'basic salary' in your contract.
  • 💡If you resign voluntarily before completing 2 years of service, you are not entitled to gratuity. After 2 years, you are entitled to a prorated amount.
  • 💡Your employer cannot withhold your passport — this is illegal under Saudi law. If your passport is being held, you can report this to the Ministry of Human Resources.
  • 💡Annual leave must be used or carried forward — most contracts stipulate the rules on leave accumulation. Unused leave should be paid out on termination.
  • 💡Probation periods are typically up to 90 days (extendable to 180 days by mutual agreement) — during probation, either party can terminate with less notice.
  • 💡Keep records of your salary payments, payslips, and any written communications with your employer — these are important evidence in any dispute.

Frequently Asked Questions

What is end-of-service gratuity and how is it calculated?

End-of-service gratuity (EOSB) is a lump sum payment you receive when leaving a job in Saudi Arabia. Calculation: first 5 years of service = half a month's basic salary per year. From year 6 onwards = one full month's basic salary per year. If you are dismissed without cause, you receive the full amount. If you resign, you receive a reduced percentage depending on years served.

How much annual leave am I entitled to?

Under Saudi Labor Law: 21 days of paid annual leave per year for the first 5 years of service with the same employer. After 5 years with the same employer, this increases to 30 days per year. Your contract may offer more than the legal minimum — check your contract.

Can my employer terminate me without reason?

An employer can terminate a contract with notice (typically 60 days for contracts over one year). However, arbitrary dismissal without a valid reason entitles you to compensation — typically equivalent to 30 days' salary per year of service, in addition to the end-of-service gratuity. File a claim with the Ministry of Human Resources if you believe you were unfairly dismissed.

What are my rights if my employer does not pay my salary on time?

The Wage Protection System (WPS) requires employers to pay salaries on the agreed date. A delay of more than 10 days is a violation. You can file a complaint with the Ministry of Human Resources (mhrsd.gov.sa) or through the Musaned portal. MHRSD actively enforces WPS violations.

Can I change jobs without my employer's permission?

Since 2021, Saudi Arabia reformed the Kafala sponsorship system. Expat workers can now transfer employers without the current employer's approval after completing 12 months of service. The process is done through Absher. You do not need your employer's consent if you have completed 12 months. See the Kafala transfer guide for details.

What is the process for filing a labor complaint?

File a complaint online through the Ministry of Human Resources portal (mhrsd.gov.sa) or visit a MHRSD office. The initial step is mediation — most disputes are resolved at this stage. If mediation fails, the case goes to the Labor Court. The process is free. You can file in English but documents may need translation.

Am I entitled to sick leave?

Yes — Saudi Labor Law provides for paid sick leave: the first 30 days of sick leave in a year are paid at full salary. The next 60 days are paid at 75% salary. After 90 days, leave may be unpaid. A doctor's certificate is required. Your employer cannot terminate you solely because you are on sick leave.

Does Saudi labor law cover domestic workers?

Domestic workers (housemaids, drivers, nannies) are governed by a separate Domestic Workers Law rather than the main Labor Law. The key rights — written contract, rest days, 30 days annual leave, and end-of-service pay — broadly apply but the enforcement mechanism is different.