The employment contract (عقد العمل) sets the measure of your rights and duties, whether you are a worker or an employer. This page explains what the Saudi Labour Law (نظام العمل) says about writing a contract, its contents, probation, contract types, and how it ends — with article numbers as published by the Ministry of Human Resources and Social Development (وزارة الموارد البشرية والتنمية الاجتماعية).

What is an employment contract?

An employment contract is concluded between an employer and a worker, under which the worker undertakes to work under the employer’s management or supervision in return for a wage (Article 50). Three elements make a relationship an employment relationship: work, a wage, and subordination to management or supervision.

• The Law applies to every contract of this kind (Article 5). Some categories are excluded and governed by their own regulations, including domestic workers and those in a similar position, and agricultural workers and private shepherds (Article 7).
• Any term contradicting the Law is void, as is any waiver or settlement of a worker’s rights during the contract, unless it is more beneficial to the worker (Article 8).

Does the contract have to be in writing?

• The contract must be written in two copies, each party keeping one, and documented (توثيق) under the statutory provisions and as the Implementing Regulations specify (Article 51).
• An unwritten contract is still valid. The worker alone may then prove the contract and the resulting rights by all means of evidence, and either party may ask at any time for it to be written (Article 51). No written contract does not mean no rights.
• Arabic must be used in employment contracts; if a foreign language is used alongside it, the Arabic text prevails (Article 9).
• A non-Saudi worker’s contract must be written and fixed-term. If no term is stated, it is deemed one year from the actual start of work, and work continuing beyond that renews it for a similar period (Article 37).

What must the contract contain?

The Ministry issues a unified form for each contract type, which the contract must follow; the parties may add clauses that do not conflict with the Law and its Regulations (Article 52). The form covers:

• The employer’s name and place of business; the worker’s name, nationality, proof of identity and address.
• The agreed wage, including benefits and allowances.
• Type of work and location, date of joining, and the term if fixed-term.
• The main rights and obligations of each party.

The probation period

• Probation (فترة التجربة) must be stated expressly in the contract with its duration clearly specified; if it is not stated, there is no probation (Article 53).
• Total probation may not exceed 180 days, and the Regulations set out which leaves are not counted within it (Article 53).
• Either party may terminate during probation, and neither owes compensation. The worker earns no end-of-service award (مكافأة نهاية الخدمة) for that period (Articles 53 and 54).
• A worker may not be put under probation twice with the same employer, unless it is agreed in writing that the probation is in a different profession or job, or that at least six months have passed since the previous relationship ended (Article 54).

Contract types and when a contract becomes indefinite

• A fixed-term contract ends when its term expires; if both parties keep performing it, it is deemed renewed for an indefinite term, subject to Article 37 on non-Saudis (Article 55).
• With a renewal clause, the contract renews for the agreed period. If it renews three consecutive times, or the original term plus renewals reaches four years — whichever comes first — and the parties keep performing it, it becomes indefinite (Article 55).
• The renewal period is treated as an extension of the original period when calculating rights that depend on length of service (Article 56).
• A contract for a specific piece of work ends when that work is completed (Article 57).

What cannot be changed unilaterally

• A worker may not be transferred without written consent to a location requiring a change of residence. In incidental necessity, the worker may be assigned work elsewhere for up to 30 days a year, with the employer bearing travel and accommodation costs (Article 58).
• A worker may not be assigned work substantially different from the agreed work without written consent, except in incidental necessity and for up to 30 days a year (Article 60).
• A monthly-paid worker may not be moved to daily, weekly, piece-rate or hourly pay without written consent (Article 59).
• The employer may not withhold the wage or any part of it without a judicial order (Article 61).

How a contract ends, and notice periods

The Law lists how a contract ends, including agreement of both parties — the worker’s consent must be in writing — expiry of the term, resignation (الاستقالة), retirement age, force majeure, and permanent closure of the establishment (Article 74).

• Terminating an indefinite-term contract must be based on a valid reason, and a party who does not observe the notice period (مهلة الإشعار) pays an amount equal to the worker’s wage for that period (Articles 75 and 76).
• Unless the contract sets a specific compensation, a party injured by termination for an invalid reason is owed: 15 days’ wage per year of service if the contract is indefinite, or the wage for the remaining period if it is fixed-term, with a minimum of two months’ wage (Article 77).
• During the employer’s notice period, the worker may take one full paid day a week, or eight hours, to look for other work (Article 78).
• Resignation: the request is deemed accepted if 30 days pass without a reply. The employer may postpone acceptance up to 60 days if the interests of work require it, by a written reasoned explanation given before the 30 days expire. The worker may withdraw within 7 days of submitting it unless the employer has already accepted it, and the contract stays in force meanwhile (Article 79 bis).
• Termination without notice or award: open to the employer in a closed list of cases, including forgery to obtain the job, and absence without valid reason for over 30 days in the contract year or 15 consecutive days after a written warning — and only after the worker has had the chance to object (Article 80).
• Leaving work without notice: open to the worker, with full entitlements kept, in a closed list of cases, including the employer’s failure to meet essential obligations, and treatment marked by cruelty, injustice or insult (Article 81).
• Service may not be ended because of illness before the sick-leave periods are exhausted (Article 82).

When the contract ends

• On request, the employer must give a free certificate of service (شهادة خدمة) stating the dates of joining and leaving, the profession and the last wage; it may not contain anything damaging to the worker’s reputation, and any certificates or documents deposited must be returned (Article 64).
• Wages are paid and entitlements settled within one week at most of the relationship ending — or within two weeks if the worker is the party who ended the contract (Article 88).

When you need a consultation

Most everyday contract questions can be answered from the text of the Law. But where large sums are involved, a termination is disputed, or clauses are ambiguously drafted, review the case with a specialist before signing or before filing anything. Early advice is cheaper and simpler than litigation afterwards.

This page is general information intended to explain the Labour Law in plain terms; it is not legal advice on any particular case.