Quick Summary
- Saudi Labour Law protects all workers — Saudi and expatriate equally
- Rights apply from day one of employment including probation
- Key rights: salary on time, EOSB, annual leave, sick leave, safe workplace, iqama management
- Any contract clause that removes a legal right is unenforceable
- HRSD complaint system is free and accessible — no lawyer needed to file
- You have 1 year from employment end to file a claim
Your Right to Be Paid Correctly and On Time
Your most fundamental right is to receive the salary agreed in your contract — in full, on time, every month. Saudi Labour Law Article 90 requires salary to be paid within 7 days of the due date. The Salary Protection System (SPS) monitors all payments automatically.
- Salary must be paid through the Saudi banking system — not cash only
- No deductions can be made without legal justification — maximum 50% of salary can be deducted in any month
- If salary is delayed more than 30 days you can resign and claim full EOSB under Article 81
- Salary reduction requires your written consent — employer cannot cut pay unilaterally
→ Full Guide: Salary Delay Rights
Your Right to End-of-Service Benefit (EOSB)
EOSB — also called gratuity — is a lump sum payment owed to you when your employment ends. It is calculated on your basic salary and years of service. Every worker who completes at least one year of service is entitled to EOSB.
- Calculation: half month basic salary per year for first 5 years, full month per year after 5 years
- Termination by employer: full EOSB always
- Resignation: reduced EOSB — zero under 2 years, one-third from 2–5 years, two-thirds from 5–10 years, full from 10 years
- Fixed-term contract expiry: full EOSB — treated same as termination
- Must be paid within 7 days of employment ending
Your Right to Annual Leave
Every employee is entitled to paid annual leave. Leave accrues from your first day including probation.
- 21 days paid leave per year for the first 5 years of service
- 30 days paid leave per year after 5 years of service
- Leave salary calculated on total salary — not just basic
- Unused leave cannot be forfeited — must be paid out on termination
- Employer cannot force you to take annual leave instead of sick leave
→ Full Guide: Annual Leave Policy
Your Right to Sick Leave
Saudi Labour Law Article 113 provides 120 days of sick leave per year — structured across three pay periods.
- First 30 days: full salary
- Days 31–90: 75% of salary
- Days 91–120: unpaid
- You cannot be terminated during sick leave within the 120-day period
- Medical certificate from a licensed facility is required
→ Full Guide: Sick Leave Rules
Your Right to a Notice Period
Both you and your employer must give notice before ending an unlimited contract. Neither party can just end employment without notice unless paying in lieu.
- Under 2 years service: 30 days notice
- 2 or more years service: 60 days notice
- Notice must be in writing
- If employer terminates without notice: notice period salary must be paid
- For fixed-term contracts: 30 days notice for early termination by either party
→ Full Guide: Notice Period Rules
Your Right to Overtime Pay
If you work beyond 8 hours per day or 48 hours per week you are entitled to overtime pay — unless you fall into a genuine senior management exemption.
- Weekday overtime: 150% of hourly rate
- Rest day and holiday overtime: 200% of hourly rate
- Manager title alone does not make you exempt — genuine hire/fire authority is required
- Contract clauses removing overtime rights are unenforceable
→ Full Guide: Working Hours & Overtime
Your Right to a Safe Workplace
Your employer has a legal duty to provide a safe working environment. If you are injured at work you have significant rights.
- Full salary continues during recovery from work injury — up to 12 months
- All medical treatment costs covered by employer or GOSI
- Permanent disability: compensation up to 3 years salary
- Work-related death: family receives compensation up to 3 years salary plus full EOSB
- You cannot be terminated during recovery from a work injury
→ Full Guide: Work Injury Compensation
Your Right to Proper Iqama Management
Your employer as iqama sponsor has specific legal obligations regarding your residency status.
- Employer must renew your iqama annually — at their cost
- Iqama fine for late renewal (SAR 100/day) is employer's responsibility — not yours
- Employer cannot hold your passport — this is illegal under any circumstances
- Employer cannot file Huroob (absconding) falsely — this is a serious violation
- You must be issued an exit re-entry visa to travel — employer cannot withhold this unreasonably
→ Full Guide: Iqama Renewal Process
Your Right to Compensation If Wrongly Terminated
If your employer terminates you without valid reason Article 77 of Saudi Labour Law entitles you to additional compensation on top of EOSB.
- Compensation: up to 2 months salary for each year of service
- Applies when no valid disciplinary reason exists for termination
- Cannot be waived by contract
- Filed through HRSD complaint system
→ Full Guide: Article 77 Compensation
Your Right to File a Labour Complaint
If any of your rights are violated you have a free and accessible complaint system through HRSD.
- File online at hrsd.gov.sa — no lawyer needed
- HRSD mediation resolves most cases in 2–4 weeks
- Labour Court available if mediation fails — 3–6 months
- Can file from outside Saudi Arabia within 1 year of employment ending
- Retaliatory actions after filing a complaint are themselves violations
→ Full Guide: Labour Complaint Process
Rights That Cannot Be Removed by Contract
Saudi Labour Law sets a minimum floor of rights. Any contract clause that gives you less than what the law requires is automatically void and unenforceable. This means:
- A clause saying "no EOSB" is void — you are still entitled to EOSB
- A clause saying "no overtime" is void — overtime rights still apply if you are eligible
- A clause saying "no sick leave pay" is void — sick leave pay is a legal entitlement
- A clause saying "no notice period" is void — notice period rules still apply
- However a contract can give you MORE than the legal minimum — those better terms are fully enforceable
Frequently Asked Questions
Do these rights apply to me even if I am on a short-term contract?
Yes — Saudi Labour Law applies to all private sector workers in Saudi Arabia regardless of contract length, nationality or industry. Short-term and fixed-term contract workers have the same fundamental rights as unlimited contract employees.
My contract is governed by my home country's law. Does Saudi Labour Law still apply?
If you are physically working in Saudi Arabia, Saudi Labour Law applies to your employment — regardless of what your contract says about governing law. You cannot be asked to waive Saudi Labour Law protections by choosing a different governing law in the contract.
I have been working informally without a written contract. Do I still have rights?
Yes — Saudi Labour Law presumes an employment relationship exists when someone works for another party. The absence of a written contract does not remove your rights. It does make proving the terms harder — which is why always having a written contract is so important.
Not Sure Which Rights Apply to Your Situation?
Every employment situation is different. Book a consultation for a clear assessment of your specific rights and what you may be owed — based on 20 years Saudi Arabia experience.