Labor Law: writing and documenting the employment contract
- Published by:
- Ministry of Human Resources and Social Development
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.
This service focuses on legal advice. Representation in employment disputes and litigation is addressed under Employment and Labor Disputes.
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:
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.
The legal texts and official publications this content relies on.
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.
An employer's obligations when an employment relationship ends depend on how that relationship ended and the specific legal reason behind it. Understanding these distinctions in advance helps an employer handle each situation correctly, rather than treating every case the same way.
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