Saudi Labor Law: Answers to the Most Important Questions

The Saudi Labor Law is uniquely designed to answer all questions related to the Saudi Labor System, including workers' rights such as maternity leave, iddah leave, recruitment of non-Saudi workers, and changing employment contracts from fixed to indefinite term contracts. We shall discuss below answers to the most common questions about labor law.

Is the worker entitled to an annual leave?

A worker shall be entitled to a prepaid annual leave of not less than 21 days, to be increased to 30 days if the worker spends five consecutive years in the service of the employer. The worker may not forgo it or receive cash in lieu during his period of service. 

Is the worker entitled to an unpaid leave?

Article (116) of the Labor Law stipulates that a worker, subject to the employer’s approval, may obtain an unpaid leave for the duration to be agreed upon by the two parties. The employment contract shall be deemed suspended for the duration of the leave in excess of 20 days, unless both parties agree otherwise

Is the worker entitled to a sick leave?

Article (116) of the Labor Law stipulates that a worker whose illness has been proven shall be eligible for a paid sick leave for the first 30 days, three quarters of the wage for the next 60 days, and without pay for the following 30 days, during a single year, whether such leaves are continuous or intermittent. A single year shall mean the year which begins from the date of the first sick leave.

May the worker work for another employer during sick leave?

Article (116) of the Labor Law stipulates that a worker may not work for another employer, while on sick leave. If the employer proves that the worker has violated this provision, he may deprive him of his wage for the duration of the leave or recover any wages previously paid to him.

May the employer deduct from the workers' wages to provide work safety and protection?

The employer may not charge the workers or deduct from their wages any amounts for the provision of such protection. The employer shall post in a visible place in the workplace the instructions related to work and workers’ safety pursuant to Article (122) of the Labor Law. 

Who is liable for damages that may affect persons entering the workplace other than workers? 

Based on Article (126) of the Labor Law, an employer shall be liable for emergencies and accidents which may affect persons, other than his workers, who enter the workplace by virtue of their official duties, if such emergencies and accidents are due to negligence in taking the technical precautions required by the nature of his work, and he shall compensate them for damage and harm they may sustain in accordance with the public laws.

Who is liable if a worker sustains a work injury or an occupational disease? 

Based on Article (133) of the Labor Law, the employer shall be required to treat the worker who sustains a work injury or an occupational disease and assume, directly or indirectly, all necessary expenses, including hospitalization, medical examinations and tests, radiology, prosthetic devices, and transportation expenses to and from treatment centers.

How to handle the worker's rights in the event of the employer's bankruptcy or liquidation of his firm?

In case of the employer’s bankruptcy or the liquidation of his firm, the amounts due to the worker or his heirs as per the indicated Law shall be entered as privileged debts and the worker shall be paid an expedited amount equivalent to one month wage prior to the payment of any other expenses including judicial, bankruptcy, or liquidation expenses pursuant to Article (19) of the Labor Law.

What is the legal status of employment contracts and workers' rights if the ownership of a firm is transferred to a new owner or a change takes place in its legal form through merger or partition?

Employment contracts shall remain in force in both cases and service shall be deemed continuous. As for workers’ rights accrued for the period prior to the change, such as wages or unrealized end-of-service awards on the date of the transfer of ownership and other rights, the predecessor and the successor shall be jointly and severally liable pursuant to Article (18) of the Labor Law.

Is the disabled worker entitled to get a job?

Article (18) of the Labor Law stipulates that each employer employing 25 workers or more, where the nature of his work allows recruitment of the professionally disabled, shall employ a number of disabled workers that represents at least 4% of the total number of his workers whether through nomination by employment units or otherwise.

What happens if a worker sustains a work injury that results in a loss in his usual capabilities?

The employer, under whose service the work injury was sustained, shall employ the said worker in a suitable job for the wage specified for such job; without prejudice to the worker's due compensation for the injury.

May anyone engage in the recruitment of Saudis or in the recruitment of workers from abroad?

Article (30) of the Labor Law stipulates that natural or corporate person may not engage in the recruitment of Saudis or in the recruitment of workers from abroad unless licensed for the same by the Ministry. 

What are the conditions for non-Saudis to engage in any work?

Non-Saudis may engage in a work only after obtaining a work permit from the Ministry, according to the form prepared by it for such purpose. Article (30) of the Labor Law stipulates the conditions for granting work permit as follows: 

• The worker has lawfully entered the country and is authorized to work
• The worker holds the professional or academic qualifications required by the country and not possessed by citizens, that the available number of qualified citizens is insufficient to meet the work needs, or that the worker falls into the class of ordinary workers needed in the country.
• The worker has a contract with an employer and is under his responsibility.

Are all the professions available for Non-Saudis?

Article (36) of the Labor Law indicates that specifying the professions and jobs which are prohibited for non-Saudis is subject to the Minister's decision. Also Article (11) of the Executive Regulation indicated the occupations that non-Saudis may not be recruited, which include:

• Senior HR Manager
• Director of Personnel 
• Security Guard
• Director of Labor Affairs
• Full Time Clerk 
• General Reception Clerk
• Key Smith
• Reception Clerk
• Customs broker
• Personnel Specialist 
• Patient Reception Clerk
• Personnel Affairs Clerk 
• Complaint Clerk 
• Recruitment Clerk 
• Treasurer 

Any of these occupations may not be assigned to a non-Saudi worker, directly or indirectly, under any other job title.

What happens if a non-Saudi employment contract does not indicate the contract term?

The employment contract for non-Saudis shall be written and of a fixed term; however, if the contract does not specify its term, the duration of the work permit shall be deemed the term of the contract pursuant to Article (37) of the Labor Law. Furthermore, Article (12) of the Executive Regulation indicates that the non-Saudi employment contract shall have a definite term regardless of any extended terms. In any event, the contract may not be amended to have an unspecified term even if agreed to by the parties.

May a worker be employed in a profession other than the one specified in his work permit?

Article (38) of the Labor Law prohibits that and indicates that a worker is prohibited from engaging in a profession other than his before taking the legal measures necessary to change his profession.

Who bears the fees pertaining to the recruitment of non-Saudi workers? 

The employer shall bear the fees pertaining to the recruitment of non-Saudi workers, the fees for issuing and renewing residence permit (Iqama) and work permit, and the fines resulting from their delay; while a worker shall bear the costs of returning to his home country if he wishes without a legitimate reason, as per Article (40) of the Labor Law.

How does the contract become an indefinite term contract?

If the original contract term and the renewal period amount to four years, and the parties continue to execute it, the contract shall become an indefinite term contract, subject to the provisions of Article (55) of the Saudi Labor Law.

May the employer relocate the worker to another place without his consent?

Article (58) of the Labor Law prohibits that; however, the employer may, in exigent circumstances and for a period not exceeding 30 days, assign the worker without his consent to a different location, provided that the employer bears the costs of the worker’s transport and residence during such period.

Are the periods designated for rest, prayers, and meals included in the actual working hours?  

Article (102) of the Labor Law indicates that the worker shall not be under the employer’s authority during such breaks periods and shall not require the worker to remain at the workplace meanwhile.

Is the worker entitled to a leave in the event of marriage, childbirth, or death of a spouse? 

Article (113) of the Labor Law indicates that, a worker shall be entitled to a one-day leave in the case of childbirth, and a three-day leave in case of marriage, the death of a spouse or an ascendant or descendant. In all cases, the employer shall have the right to request supporting documents.

What happens if an injury results in a permanent total disability of the worker?

If an injury results in a permanent total disability or the death of the worker, the injured or his eligible beneficiaries shall be entitled to a compensation equal to his wages for three years, with a minimum of 54,000 riyals, as stipulated in Article (139) of the Labor Law.

Is the female worker entitled to maternity leave?

A female worker shall be entitled to full pay maternity leave for a period of 10 weeks, and may not, under any circumstances, work during the six weeks immediately following delivery. She is also entitled to extend the leave for an additional month as unpaid leave as per Article (151) of the Labor Law.

Is the female worker entitled to "Iddah Leave’?

A Muslim female worker whose husband dies shall be entitled to ‘Iddah Leave’ with full pay for a period of not less than four months and 10 days starting from date of death. A non-Muslim female worker whose husband dies shall be entitled to a fifteen-day leave with full pay.

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