The Saudi Labor Law guarantees the rights of Saudi and foreign employees, covering the entire employment journey—from the application process to the duration of employment, and through to resignation or termination.

With Saudi Arabia’s growing integration into the global economy under Vision 2030, the increasing presence of foreign workers, the rising focus on Saudization, the rapid launch of thousands of startups, and the expanding demand for employees across diverse roles, understanding the Saudi labor system has become more essential than ever for both local and foreign employees.

In this article, we will explore the key provisions of the Saudi Labor Law, which sets out the regulations governing the relationship between employers and employees, and clearly defines the rights and obligations of each party—whether in the private or public sector.

Employee Rights under the Saudi Labor Law

The Saudi Labor Law ensures comprehensive protection for all employees working in the Kingdom, regardless of nationality. It establishes a clear framework of rights and obligations between employers and workers, fostering fairness, stability, and productivity in the workplace.

Key Employee Rights

• Employment Contract: Every employee must have a formal written contract that specifies essential terms such as working hours, salary, benefits, vacation entitlements, and other relevant conditions.
• Fair Wages & Minimum Salary: Employees are entitled to receive wages in accordance with their contracts, and salaries must not be less than the statutory minimum wage where applicable.
• Working Hours & Overtime: Standard working hours may not exceed eight hours per day. Any additional hours are considered overtime and must be compensated financially.
• Leave Entitlements: Employees are entitled to annual paid leave, sick leave, and all legally recognized public holidays. Paid leave must also be granted for marriage, childbirth, bereavement, and the performance of Hajj.
• Annual Vacation: Employees are entitled to at least 21 days of paid annual vacation, which increases to 30 days after completing five consecutive years of service.
• Safe & Healthy Workplace: Employers are obligated to provide a safe work environment, taking necessary measures to prevent occupational accidents and diseases.
• Compensation for Injuries: Employees are entitled to fair compensation for work-related injuries, supported by social insurance coverage.
• Health & Social Insurance: Employers must provide health insurance for all employees (and their dependents, where applicable). In addition, Saudi employees are covered by social insurance benefits that include retirement pensions, unemployment support, and disability protection. For non-Saudi employees, social insurance coverage is limited, but disability protection and health insurance remain guaranteed under the law.
• Equality & Non-Discrimination: All employees must be treated fairly and equally, with protection against discrimination based on gender, nationality, race, or religion.
• Legal Recourse: Employees have the right to file complaints before competent authorities in cases involving disputes over salary, working hours, or working conditions.
• End-of-Service Benefits: Employees are entitled to an end-of-service gratuity, calculated based on the length of employment and in accordance with labor law provisions.

Conclusion

After outlining the rights of both Saudi and foreign employees under the Saudi Labor Law, an important question naturally arises: What should an employee do in the event of a labor dispute?

In such situations, seeking the assistance of a certified lawyer specializing in labor cases is crucial. A skilled lawyer can guide you toward the most effective legal solution, safeguard your rights, and ensure the proper application of the law.

At Mohammed Al-Khliwi Law Firm, we are committed to handling labor disputes with the highest level of professionalism and precision. Contact us today, and let our team support you in resolving your labor issues efficiently and effectively.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.