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سندنا · Sanadna
Employment

Saudi Labor Law Advice in Dammam Saudi Labor Law Advisory

Sanadna provides legal advice to help clients understand their legal position and the applicable requirements in matters relating to Saudi labor law and the employment relationship.

Service scope

This service focuses on legal advice. Representation in employment disputes and litigation is addressed under Employment and Labor Disputes.

Situations where this may apply

  • A client needs to understand the legal position in an employment related matter.
  • A client needs clarity on how Saudi labor law applies to a particular situation.
  • A client needs legal clarification before deciding how to address an employment matter.

Legal framework

The Labor Law, issued under Royal Decree No. M/51 and amended, including by Royal Decree No. M/44 effective 19 February 2025, governs employment contracts under which a worker works for an employer, under the employer's management or supervision, for a wage. Its rules and related requirements include the following:

  • An employment contract must be written in two copies, one kept by each party, and documented in accordance with the relevant regulations. A contract exists even if it is not written, in which case the worker alone may prove the contract and the rights arising from it by any means of proof. Article 51
  • Where a worker is on probation, the contract must say so expressly and state its length, which may not exceed 180 days in total, and either party may end the contract during it. A worker may not be placed on probation more than once by the same employer, except by written agreement for a different profession or job, or after at least six months have passed since the worker's previous employment with that employer ended. Articles 53, 54
  • Either party may end an indefinite contract on the basis of a legitimate reason. Where the wage is paid monthly, written notice of termination must be given at least 30 days in advance by the worker and at least 60 days in advance by the employer. Where the wage is not paid monthly, the party ending the contract must give written notice at least 30 days in advance. Article 75
  • The Nitaqat program of the Ministry of Human Resources and Social Development aims to encourage private sector businesses to localize jobs. It groups similar economic activities into unified groups, each with required Saudization rates, and offers incentives and support for hiring Saudis. Ministry of Human Resources and Social Development: the Nitaqat program
  • A non-Saudi worker's employment contract must be written and for a fixed term, and if it does not state its duration, the term is one year from the worker's actual start date. The Ministry may refuse to renew a work permit where the employer violates the job localization standards it sets. Articles 35, 37
  • The Ministry announced that, from 15 April 2026, Saudization rates under Nitaqat are calculated on the basis of employment contracts documented electronically through the Qiwa platform, and that documenting Saudi employees' contracts there is a basic condition for counting them in those rates. Ministry of Human Resources and Social Development: Nitaqat rates calculated on contracts documented through Qiwa

Common types of matters

  • Drafting or reviewing a new employment contract before extending an offer.
  • Planning to end or not renew an employment contract and confirming the correct notice period before acting.
  • Reviewing internal policies on leave, probation, or disciplinary procedures for compliance with the law.
  • Questions about a business's Nitaqat classification and the Saudization requirements that come with it.
  • Clarifying the obligations that come with hiring a non-Saudi employee for the first time.

How a matter may proceed

  1. The matter starts by pinning down the precise legal rule involved, whether it concerns a contract, leave, a termination notice, or a Saudization classification.
  2. The business's current position, its contracts, policies, and Qiwa documentation, is reviewed against that rule.
  3. Clear legal advice is given before the decision or action is taken, not after, which reduces the likelihood of a later dispute.

Key considerations

  • The amendments effective 19 February 2025 changed several familiar rules, including the probation period and maternity leave, so relying on information predating that date may be inaccurate.
  • Documenting a Saudi employee's contract through Qiwa is not a mere formality, it is a condition for counting that employee in Saudization rates under Nitaqat.
  • Non-Saudi employment contracts must be written and for a fixed term, a specific rule that differs from the general rules for employment contracts.

Documents typically needed

  • A copy of the current employment contract or its proposed draft.
  • The internal policies that need review, if any.
  • The business's current Nitaqat classification data, where the question concerns Saudization.
  • Correspondence relevant to the matter under advice.

Frequently asked questions

Yes. The Labor Law requires an employment contract to be written in two copies, one kept by each party, and documented in accordance with the relevant regulations. A contract still exists if it is not written, and the worker alone may then prove it by any means of proof. From 15 April 2026, the Ministry calculates Saudization rates under Nitaqat on the basis of contracts documented electronically through Qiwa. A non-Saudi worker's contract must be written and for a fixed term.

180 days in total at most under the law's amended text, and it must be stated expressly in the contract. A worker may not be placed on probation more than once by the same employer, except by written agreement for a different profession or job, or after at least six months have passed since the worker's previous employment with that employer ended.

Termination must be based on a legitimate reason, with written notice of at least 30 days if given by the employee and at least 60 days if given by the employer, for contracts paid monthly. Where the wage is not paid monthly, either party must give at least 30 days' notice, under the law's amended text.

Nitaqat is a Ministry of Human Resources and Social Development program that aims to encourage private sector businesses to localize jobs. It groups similar economic activities, each group with required Saudization rates, and offers incentives and support for hiring Saudis. The Labor Law allows the Ministry to refuse to renew a work permit where the employer violates the job localization standards it sets. Required rates can change, so checking them means confirming what the Ministry has adopted at the time.

Yes, either party may end the contract during the probation period. Where a worker is on probation, the contract must say so expressly and state its length, which may not exceed 180 days in total.

The term is one year from the worker's actual start date. A non-Saudi worker's employment contract must be written and for a fixed term, a specific rule that differs from the general rules for employment contracts.

Yes. The amendments issued under Royal Decree No. M/44 and effective 19 February 2025 changed several familiar rules, including the probation period and maternity leave, so relying on information predating that date may be inaccurate.

This service focuses on legal advice on applying the Labor Law, while representation in employment disputes and litigation is addressed under Employment and Labor Disputes.

Official references

The legal texts and official publications this content relies on.

Labor Law: writing and documenting the employment contract

Article 51
Published by:
Ministry of Human Resources and Social Development
View official source

Labor Law: the probation period

Articles 53, 54
Published by:
Ministry of Human Resources and Social Development
View official source

Labor Law (as amended, 2025): notice period for an indefinite contract

Article 75
Published by:
Ministry of Human Resources and Social Development
View official source

Ministry of Human Resources and Social Development: the Nitaqat program

Published by:
Ministry of Human Resources and Social Development
View official source

Labor Law: non-Saudi employment contracts and non-renewal of work permits for breach of localization standards

Articles 35, 37
Published by:
Ministry of Human Resources and Social Development
View official source

Ministry of Human Resources and Social Development: Nitaqat rates calculated on contracts documented through Qiwa

Published by:
Ministry of Human Resources and Social Development
View official source

This is general information based on the cited laws when this page was prepared. It may change, and it is not legal advice on a specific case.