Labor Law

Purpose and scope

• Governs the relationship between workers and employers in the private sector from signing to termination: wages, working hours, leave, safety, work injuries, discipline and the end-of-service award.
• Applies to every contract under which a person works for an employer, under the employer's direction and supervision, for a wage; some categories are excluded, including domestic workers, who have their own regulation.
• The contract is written in two copies, one for each party; it exists even if not written, and the worker alone may then prove it and his rights by any means of evidence (Article 51).

Key rules, rights and obligations

• Probation must be stated expressly in the contract, may not exceed 180 days in total, and either party may end the contract during it (Article 53).
• A fixed-term contract becomes indefinite if the parties keep performing it after it ends, or after three consecutive renewals or four years including renewals, whichever is shorter (Article 55).
• A worker may not be assigned work substantially different from what was agreed without written consent, except in necessity for no more than 30 days a year (Article 60).
• Working hours may not exceed 8 a day or 48 a week, reduced in Ramadan for Muslims to 6 a day or 36 a week (Article 98).
• Overtime is paid at the hourly wage plus 50% of the basic wage; with the worker's consent it may be replaced by paid leave; all hours on holidays and Eid are overtime (Article 107).
• Monthly wages are paid once a month through approved banks (Article 90); no deduction may be made for private claims without the worker's written consent except in listed cases, such as repaying an employer loan at no more than 10% of the wage (Article 92).
• Annual leave is at least 21 days, 30 days after five continuous years, paid in advance, may not be cashed in during service, and the worker is notified of its date 30 days ahead (Article 109); unused leave is paid on leaving (Article 111).
• Sick leave is on full pay for the first 30 days, three-quarters pay for the next 60, and unpaid for the following 30 within the year (Article 117).
• Paid leave of 5 days for marriage or the death of a spouse, parent or child; 3 days for the death of a sibling; and 3 days on the birth of a child (Article 113).
• Maternity leave is 12 weeks on full pay, 6 of them compulsory after birth, plus one more month on full pay if the child is born ill or with a disability and needs constant care (Article 151).
• The employer must take safety precautions and post the instructions, may not charge workers for them (Article 122), and must provide health care (Article 144).
• End-of-service award: half a month's wage for each of the first five years and a full month for each later year, on the last wage, with parts of a year pro rata (Article 84).
• On resignation: one third of the award after two to five years, two thirds after more than five and less than ten, and the full award after ten years or more (Article 85).

Violations, penalties and common problems

• Late wages or unlawful deductions: the worker may apply to the labour court, which may fine the employer up to twice the amount withheld or delayed (Article 94); total deductions may not exceed half the wage without the court's permission (Article 93).
• Termination without a valid reason: 15 days' wage per year of service (indefinite contract) or the wage for the remaining term (fixed-term), at least two months' wage, unless the contract sets compensation (Article 77).
• Dismissal without award, notice or compensation is allowed only in listed cases, including assault at work, breach of essential duties after written warning, forgery, and unjustified absence of more than 30 days a year or 15 consecutive days after warning, and the worker must be given the chance to respond (Article 80).
• A worker may leave without notice and keep all rights if the employer breaches essential obligations, deceived him at contracting, assigned substantially different work without consent, assaulted or insulted him, or pushed him to appear to resign (Article 81).
• A female worker may not be dismissed or warned of dismissal during pregnancy, maternity leave or related illness, within 180 days a year (Article 155).
• Disciplinary penalties are limited to: warning, fine, withholding an increment or deferring promotion for up to a year, suspension without pay, and dismissal where allowed (Article 66).
• Breaching the law, its regulation or decisions: a fine of up to SAR 100,000, closure for up to 30 days, or permanent closure; fines multiply by the number of workers affected and may be doubled for repeat violations (Article 229).
• Work injury: full wage for 60 days, then 75% during treatment; permanent total disability or death is compensated at three years' wage, at least SAR 54,000 (Articles 137 and 138).

Procedures and key deadlines

• Ending an indefinite contract for a valid reason requires written notice of 30 days from the worker and 60 days from the employer for monthly-paid workers (Article 75); a party who skips the notice pays its wage to the other (Article 76).
• A resignation is deemed accepted 30 days after submission without a reply; the employer may defer it up to 60 days with a written reason; the worker may withdraw it within 7 days unless already accepted (Article 79 bis).
• The worker's dues are settled within one week of the end of employment, or two weeks if the worker ended the contract (Article 88).
• A worker may file a grievance against a disciplinary penalty with the employer within 30 days of notice, then object before the labour court within 30 days (Article 72).
• Labour claims are not accepted 12 months after the end of employment unless the court accepts an excuse or the defendant acknowledges the right; labour cases are heard urgently (Article 234).
• A claim usually starts with an amicable settlement request on the Ministry's platform; if it fails it is referred to the labour court.

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.