Saudi Arabia’s labour law, shaped by Royal Decree No. M/51, sets out clear rules for employers and employees. For international businesses expanding into the Kingdom, Leap29’s global workforce management solutions help you navigate compliance, recruitment and payroll challenges with ease.
Saudi Arabia Employment Contracts
All contracts in Saudi Arabia must include core terms specified by law and be authenticated by the General Organisation for Social Insurance. It must be written, often using the standard Qiwa contract template supplied by Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD), and include key details such as: names, addresses, wages, start dates and contract duration. Non-Saudi employees, by law, require fixed-term contracts.
Saudi Arabia Working Hours and Leave
Standard working hours in Saudi Arabia tend to be 8 hours per day or 48 per week, with the working week being Sunday to Thursday. However, during Ramadan this can vary, with a typical work day of 6 hours.
The working day in Saudi Arabia is limited to 11 hours, therefore, hours worked over contracted hours are paid at overtime rates (which should be specified in the employee’s contract)
Employees are entitled to weekly rest days and holiday leave, including National Day and Founding Day. Muslim employees with 2 years’s service are also entitled to Hajj leave in Saudi Arabia – 10 to 15 days (including the public holiday) of paid leave to perform the Hajj pilgrimage over the Eid Al Adha holiday. This is available only once during the employee’s employment with the present company on condition that this is the employee’s first Hajj pilgrimage.
Saudization and Local Hiring
The Saudization initiative, also known as the Nitaqat program, requires companies to hire and train Saudi nationals, and states defined quotas based on sector, company size and job category that employers must meet.
Failure to comply with Saudization can result in big penalties, including fines, hiring restrictions and blocked visa applications. It’s vital that employers understand the regulations to avoid such penalties.
For more information about Saudization, how it impacts employers and how Leap29 can help you navigate the legislation, visit our Saudization Support Services guide.
2025 Amendments
Key changes include clearer resignation rules, extended maternity leave, new paternity and bereavement leave and stricter penalties for violations. Bankruptcy is now a valid reason for termination and notice periods have been updated for fairness.
[will develop this section and link out to the 2025 changes blog we write in September]
Expanding into Saudi Arabia
Leap29’s expertise helps businesses expand into Saudi Arabia with tailored workforce solutions. Speak to our team today or drop us an email on ksa@leap29.com to discover how we can help you stay compliant while building a strong local presence in Saudi Arabia.
FAQs on Saudi Labour Law
Do Saudi Arabian employment contracts need to be written?
Yes, especially for non-Saudi employees; contracts must be written and fixed-term.
What are the standard working hours in Saudi Arabia?
Typically 8 hours per day or 48 hours per week.
How does Saudization affect hiring?
Companies must employ a set percentage of Saudi nationals. Leap29 supports recruitment to meet these goals.
What are the key 2025 updates to Saudi Arabia’s Labour Law?
Longer maternity leave, new paternity leave, resignation rules and updated termination procedures.
