Key Labour Law Rules in Saudi Arabia
A Practical Guide to Saudi Labour Law for Employers
The Saudi labour law guide is essential for foreign investors who want to hire and manage employees in the Kingdom. Knowing the rules protects your company from penalties and ensures compliance with Saudi authorities.
Employment Contracts in Saudi Arabia
- All employees must have written contracts in Arabic.
- Contracts must define salary, allowances, working hours, and leave.
- Electronic contracts are now managed through the Qiwa platform Saudi Arabia
Working Hours and Overtime Rules
- Standard workweek: 48 hours (or 40 hours during Ramadan).
- Overtime is paid at 150% of the hourly wage.
End-of-Service Benefits (ESB)
- Employees are entitled to end of service benefits in KSA.
- Payments depend on years of service and final salary.
Saudization and Labour Quotas
- Employers must comply with Saudi Arabia Saudization law (Nitaqat).
- Quotas vary by industry and company size.
- Non-compliance may block visa services.
Importance of Compliance with Labour Law
Adhering to the Saudi labour law guide ensures smooth HR operations and avoids penalties.
Saudi Business Hub provides HR and payroll solutions aligned with Saudi labour law — keeping your business compliant and efficient.
