⚖️ Saudi Labor Law Guide

Saudi Labor Law,
Explained Simply

A practical reference for organizations navigating employment regulations in the Kingdom. Use alongside official sources and professional legal advice.

⚠️ For informational purposes only — not legal advice

📊 Quick Reference — Key Numbers

TopicStandard RuleNotes
Normal Working Hours48 hrs/week, 8 hrs/dayReduced to 36 hrs/week during Ramadan
Annual Leave (0–5 yrs)21 calendar daysPaid leave per year
Annual Leave (5+ yrs)30 calendar daysPaid leave per year
Overtime Rate150% of basic wagePlus allowances for hourly calculation
Probation PeriodUp to 90 daysExtendable to 180 days by agreement
Maternity Leave10 weeks paid4 weeks before + 6 weeks after birth
Paternity Leave3 days paidFor birth of child
Sick LeaveUp to 120 days30 full pay + 60 half pay + 30 unpaid
Notice Period60 days (employer) / 30 days (employee)For indefinite contracts with 2+ years service
EOSB – Resignation (0–5 yrs)1/3 of monthly wage per yearPer year of service
EOSB – Resignation (5–10 yrs)2/3 of monthly wage per yearPer year of service
EOSB – Resignation (10+ yrs)Full monthly wage per yearPer year of service
EOSB – Employer TerminationFull monthly wage per yearAll service years, from day one

📄 Employment Contracts

Saudi Labor Law requires all employment relationships to be documented in a written contract in Arabic. Contracts must specify job title, salary, and duration. Fixed-term contracts that are renewed or continued may be treated as indefinite-term contracts.

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Key point: Contract clarity, Arabic version prevails in disputes

🕐 Working Hours & Overtime

The standard working week is 48 hours across 6 days. Employees may not work more than 5 consecutive hours without a break. Overtime above 48 hours per week must be compensated at 150% of the basic hourly rate.

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Key point: Ramadan hours: 36 hrs/week maximum

🌴 Leave Entitlements

Annual leave, sick leave, maternity leave, Hajj leave (10 days after 2 years), bereavement leave (5 days for spouse/child, 3 days for other relatives), and Eid holidays are all legally recognized entitlements.

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Key point: Leave cannot be forfeited without compensation

🚪 Termination & Resignation

Employers can terminate for cause without EOSB in specific circumstances listed in Article 80. Employees may leave without notice in circumstances listed in Article 81. All other terminations require notice and full EOSB payment.

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Key point: Article 80 grounds must be strictly followed

🤖 How ResourcePlus Helps

ResourcePlus is built to reflect the requirements of Saudi Labor Law automatically — so you don't have to manually track every calculation.

✓Automatic EOSB calculation based on service duration and departure type
✓Leave balance tracking and accrual aligned with statutory entitlements
✓Overtime calculation at correct statutory rates
✓Payroll compliance with WPS submission requirements
✓GOSI contribution calculation and reporting