Saudi Labor Law: An Overview
Official sources cited: 4
On this page
The Labor Law governs the relationship between employers and workers in the Saudi private sector, from its scope of application to its key statutory entitlements, several of which were amended effective early 2025, making it important to check the current text before relying on any specific provision.
Scope of Application
Under Article 5, the law applies to every employment contract under which a person undertakes to work for an employer, under the employer's management or supervision, for a wage. It also applies to other categories the article lists, including government workers, workers in public authorities and institutions, and workers in charitable organizations, subject to the exclusions the law itself sets out.
Excluded Categories
Article 7, as amended, excludes the following categories from the law's application: members of the employer's family, namely the spouse, ascendants and descendants, where they are the only workers in the establishment; players and coaches of sports clubs and federations; domestic workers and those treated as such; agricultural workers, private herders and those treated as such; and non-Saudi workers who come to perform a specific task for no more than two months. The Minister issues separate regulations for some of these categories. It is therefore necessary to confirm that the law applies to a specific employment relationship before relying on it.
Annual Leave
Under Article 109, a worker is entitled each year to annual leave of no less than 21 days, increased to no less than 30 days once the worker has completed five continuous years of service with the employer. The leave is paid, with the wage paid in advance.
Maternity Leave
Under Article 151, as amended, a female worker is entitled to fully paid maternity leave of twelve weeks. The six weeks after childbirth are mandatory, and she may distribute the remaining six weeks as she chooses, starting from four weeks before the expected date of delivery. She may extend the leave by one month without pay, subject to the conditions the text sets out.
The 2025 Amendments
Amendments to a number of Labor Law articles were issued by Royal Decree No. M/44 dated 8/2/1446H and came into force on 20/8/1446H, corresponding to 19 February 2025. They cover, among other things, leave provisions, termination of the employment contract and resignation. This overview is based on the text as amended, not the version that preceded it.
When Legal Input Is Worth Getting
Because the law contains a number of categories and exclusions, and because several of its articles have recently been amended, assessing a specific employment relationship against the current statutory text, rather than common assumptions about the law, is the sound basis for approaching it. This is a general overview of the legal framework, not a substitute for legal assessment of a specific employment relationship.
Frequently asked questions
The Labor Law amendments came into force on 20/8/1446H, corresponding to 19 February 2025, and were issued by Royal Decree No. M/44 dated 8/2/1446H. They are amendments to a number of the law's articles, covering, among other things, leave provisions, termination of the employment contract and resignation.
Under Article 5, the law applies to every employment contract under which a person undertakes to work for an employer, under the employer's management or supervision, for a wage. It also applies to other categories the article lists, including government workers, workers in public authorities and institutions, and workers in charitable organizations, subject to the exclusions the law itself sets out.
Under Article 7, as amended, the excluded categories are: members of the employer's family, namely the spouse, ascendants and descendants, where they are the only workers in the establishment; players and coaches of sports clubs and federations; domestic workers and those treated as such; agricultural workers, private herders and those treated as such; and non-Saudi workers who come to perform a specific task for no more than two months. The Minister issues separate regulations for some of these categories.
A worker is entitled each year to annual leave of no less than 21 days, increased to no less than 30 days once the worker has completed five continuous years of service with the employer (Article 109). The leave is paid, with the wage paid in advance.
Maternity leave is twelve weeks on full pay under Article 151, as amended, of which the six weeks after childbirth are mandatory. A female worker may distribute the remaining six weeks as she chooses, starting from four weeks before the expected date of delivery, and may extend the leave by one month without pay, subject to the conditions the text sets out.