The HR Glossary

The pattern of an employee being regularly absent from work without authorization or beyond approved leave entitlements.

Leave entitlement that has been earned by an employee based on their service period but not yet taken or paid out.

Paid time off that employees are legally entitled to under Saudi Labor Law — typically 21 days per year, rising to 30 days after 5 years of service.

The fixed component of an employee's compensation, excluding allowances, overtime, and bonuses. Forms the basis for GOSI contribution calculations.

A method of recording employee attendance using physical characteristics such as fingerprints, facial recognition, or iris scanning.

A formal legal agreement between an employer and employee that defines the terms of the employment relationship under Saudi Labor Law.

An organizational unit to which payroll and HR costs are allocated, allowing analysis of workforce expenditure by department or project.

An amount subtracted from an employee's gross salary — such as GOSI contributions, advances, absences, or penalties — before net pay is calculated.

A formal process taken by an employer in response to employee conduct or performance issues, governed by Saudi Labor Law provisions.

A statutory gratuity payment owed to employees upon separation from employment, calculated based on years of service under Saudi Labor Law Article 84.

A portal or application that allows employees to directly access their HR information, submit requests, and manage personal details.

The General Organization for Social Insurance in Saudi Arabia. Manages social insurance contributions for Saudi nationals employed in the public and private sectors.

See End-of-Service Benefit (EOSB).

An integrated software platform used to collect, store, manage, and process employee information and HR workflows.

The total number of employees within an organization or department at any given time.

Saudi Arabia's Saudization (Nationalization) classification system that evaluates businesses based on the percentage of Saudi nationals in their workforce relative to the sector benchmark.

The amount an employee actually receives after all deductions have been subtracted from gross salary.

Hours worked by an employee in excess of the standard working hours, compensated at a rate of at least 150% of normal hourly pay under Saudi Labor Law.

The structured process of integrating a new employee into the organization, including documentation, orientation, and initial training.

The process of calculating and disbursing employee salaries, allowances, deductions, and related statutory payments on a regular cycle.

An initial period of employment during which either party can terminate the relationship with shorter notice, typically up to 90 days under Saudi Labor Law.

The primary legislation governing employment relationships in Saudi Arabia, covering contracts, working hours, leave, termination, and end-of-service provisions.

The Saudi government policy of increasing the proportion of Saudi nationals in the private sector workforce, implemented through the Nitaqat classification system.

A Saudi government system requiring employers to pay wages electronically to ensure timely and accurate salary disbursement, monitored by the Ministry of Human Resources.

Standard working hours in Saudi Arabia are 8 hours per day / 48 hours per week, reduced to 6 hours per day / 36 hours per week during Ramadan.