Saudi Labour Law for Expats — Contracts & End-of-Service Rights

Summary: A practical, plain‑English guide to the most-used rights and processes under Saudi Labour Law — contracts, probation, working hours, notice & termination, End‑of‑Service (EOS), wage protection, job mobility, and dispute resolution. We cite the Ministry of Human Resources and Social Development (MHRSD) text where durable and link to official tools for calculations and complaints. Updated August 31, 2025.

TL;DR: Keep your contract & name order consistent, photograph key pages, track expiry dates (contract, Iqama, insurance), and store proofs of wage payments. If you resign or are dismissed, compute EOS with the official calculators, request your dues in writing, and (if needed) open a Friendly Settlement case before labour court escalation. This guide shows what to do, when, and with which documents — without quoting volatile fees or portal screenshots.

Scope & disclaimers (who this page is for)

• This page is written for private‑sector expat employees under the general Labour Law. Domestic work is governed by separate regulations; see MHRSD’s Regulations for Domestic Workers & the Like and its English guide (we link it below). Always follow the official portals and your HR for the current process, as the government regularly refines rules and penalties.

• We cite the 2023 English‑language Labour Law PDF (MHRSD) for durable articles (probation, notice, EOS award, wage payment, working hours). Where policies have evolved since earlier editions, we point to the MHRSD site and service pages.

• Nothing here is legal advice; treat it as an operations playbook: what to ask, what to scan, and which official tool to use next.

Contracts 101 — fixed vs indefinite, renewals & probation

The contract matters more than the offer letter. Before you sign, double‑check: legal names (passport order), job title, base wage and allowances, location, working hours, leave, probation, and termination clauses.

Fixed vs indefinite (and renewals). Under the Labour Law, if a fixed‑term contract keeps getting renewed, it may convert to indefinite once certain thresholds are hit (e.g., three consecutive renewals or a combined period of four years, whichever is less), subject to Article 37 rules for non‑Saudis. Ask HR how your contract will be treated if it’s renewed multiple times.

Probation must be in writing. If there is a probation period, it must be expressly stated in your contract. The law sets a 90‑day maximum, and permits an extension by written agreement up to 180 days. Either party may terminate during probation (unless the contract says otherwise); termination during probation does not trigger EOS. Put the exact dates in your calendar the day you sign.

Re‑probation with the same employer is limited. You can’t be placed on probation more than once with the same employer unless it’s a different job/profession or six months have elapsed since the prior relationship ended, and both parties agree in writing.

Practical contract hygiene (do this):

• Store a scanned PDF of your signed contract and any amendments.

• Keep a one‑page summary with: your legal name (passport order), job title, base wage + allowances, leave entitlement, probation dates, notice period, and EOS clause.

• Photograph the pages that mention probation, notice, wage, and EOS — you will use those later.

Working hours, rest & leave — what the law says in principle

Standard hours. The law caps actual working hours at nine per day or 45 per week, with reduced hours in Ramadan for Muslim workers (seven per day or 35 per week). Your employer may request variations only within regulated exceptions. Track hours with a personal log if your work is shift‑based.

Rest & breaks. You may not be required to work more than five consecutive hours without a rest for meals and prayer. Your break does not count as paid working time.

Annual leave. The law sets a minimum annual leave, which increases after five consecutive years of service (to 30 days at minimum in that milestone year). Your employer can schedule leave according to work needs but must give notice in advance; postponements are time‑limited and often need your written consent. Save approvals and any postponement requests in writing.

Tip: Confirm overtime, on‑call, and public‑holiday rules in your contract and internal policy. The law regulates overtime, but internal policy determines who approves it and how to claim it.

Wage protection, payslips & proof of payment (WPS)

Bank transfer is the norm. Wages must be paid in local currency on the statutory schedule (weekly for dailies, monthly for monthly‑paid) and deposited into your bank account through an approved bank. Save PDFs of your salary credits and payslips; they are vital for EOS and disputes. Wage Protection System (WPS). MHRSD monitors whether employers pay on time and in full via electronic data (WPS/Mudad). This improves traceability and helps identify wage delays or underpayments.

Why this matters: If you later claim unpaid wages or EOS, bank statements + payslips are your proof. A personal “Wage Evidence” folder with monthly PDFs will save hours in a Friendly Settlement case.

Resignation, notice, termination & compensation

Notice for indefinite contracts. The law requires written notice to end an indefinite contract: at least 60 days for monthly‑paid workers and 30 days for others, unless your contract sets a longer period. If the party ending the contract doesn’t respect the notice period, they owe the other party pay in lieu of notice for the missing days.

Termination for cause (Article 80). The law lists specific misconduct grounds where an employer may dismiss without award/notice (e.g., assault, serious violations, repeated absence after warnings). Even here, the employer must give you a chance to state your case. Keep all warnings/letters; they matter later.

If you’re asked to resign. Don’t sign a resignation letter under pressure. Ask HR to confirm the legal basis (Article 80? business closure?), the effective date, and your dues (salary to last day, accrued leave encashment if applicable, EOS, and any agreed compensation). Put everything in writing.

Article 77 (termination compensation). If a party ends the contract without a valid reason and the contract doesn’t specify compensation, the affected party is entitled to: for indefinite contracts, 15 days’ wage per year; for fixed‑term, the wage for the balance of the term, with a floor of two months’ wage. This is separate from EOS.

End‑of‑Service (EOS) — formula, partial entitlements & calculators

The legal formula (Article 84). On employment end, the employer pays an EOS award equal to half a month’s wage for each of the first five years and one month’s wage for each year thereafter; partial years are pro‑rated, and the calculation is based on your last wage.

Resignation reductions (Article 85). If you resign, EOS is one‑third after 2–5 years, two‑thirds after 5–10 years, and full at 10+ years. Some exceptions grant full EOS (e.g., force majeure; women resigning within specific windows after marriage/birth).

Dues timing (Article 88). After your service ends, employers must settle wages and entitlements within one week (or within two weeks if you end the contract). Keep dated written requests and acknowledgment of receipt.

Use official calculators, not guesses.

• MHRSD EOS Calculator — enter years/months/days, reason for separation, and last wage to see the official computation model. Save a PDF of the result and attach it to your request.

• Qiwa EOS Reward Calculator — a second official tool to cross‑check. Document both outputs.

EOS vs Article‑77 compensation — don’t mix them. EOS is a statutory gratuity owed at contract end, while Article 77 compensation addresses invalid termination. In some separations, you may claim both. Speak precisely in emails to avoid confusion.

Job mobility & exit/re‑entry (conceptual)

Saudi Arabia’s Labour Reform Initiative (LRI) introduced regulated job mobility and exit/re‑entry issuance, aiming to modernize employment terms for expatriate private‑sector workers. Always confirm your eligibility and the current conditions on the official MHRSD announcements and with your HR.

Good practice: If changing jobs, align your notice, Iqama renewal, and payroll timing; keep both HR teams in one email thread (release/transfer dates, last working day, final pay, and benefits).

Disputes — Friendly Settlement → Labour Courts (what to prepare)

Stage 1: Friendly Settlement (MHRSD). This is the first step for labour disputes; cases are lodged electronically, parties are called to mediation, and you’ll get session notices and instructions to upload documents. Gather your contract, payslips, bank statements, letters/emails, and EOS calculation PDFs before you file.

Stage 2: Labour Courts (MoJ). If mediation fails, cases move to specialized labour courts under the Ministry of Justice, with defined timelines (e.g., a standard amicable window). Keep the Friendly Settlement case number and upload package ready.

Report violations. You can also file a violation report (e.g., passport retention, wage delay) through MHRSD’s “Reporting Violations of Labor Regulations” e‑service. Provide dates, screenshots, and the establishment’s details.

Domestic workers: Dispute channels exist but are governed by separate regulations and services (e.g., Musaned). Refer to the domestic worker regulations/guide linked below. citeturn7search2

Evidence pack — what to save each month

• Contract & amendments (scan in color, 300 dpi).

• Payslips + bank credit PDFs (salary + allowances).

• Overtime approvals and timesheets.

• Annual leave approvals and any postponement consents (with dates).

• HR letters (NOC, experience letter, release, transfers).

• EOS calculator PDFs (MHRSD + Qiwa) at resignation or termination.

• Name order & document changes (new passport, marriage/divorce, dependent updates).

• Screenshots of WPS/Mudad messages (if any) and blocked transactions.

• Complaint references (Friendly Settlement case number, violation report ID).

Why monthly? If a dispute arises, tribunals value contemporaneous records. A tidy folder cuts resolution time drastically.

Scripts you’ll actually use (EN/AR)

EN — Request dues & EOS (email to HR)

Subject: Request for Final Dues & EOS — [Name], [ID last 4], Last Working Day [DD‑MMM‑YYYY] Dear [HR], please confirm the schedule to settle my final dues: (1) salary to last day, (2) accrued leave (if any), (3) EOS award per Labour Law Articles 84–88 (attached calculators), and (4) any other contractual amounts. Kindly share the breakdown and expected payment date.

AR — طلب الحقوق ونهاية الخدمة

«أرجو تأكيد موعد تسوية مستحقاتي النهائية: الراتب حتى آخر يوم، رصيد الإجازة (إن وجد)، مكافأة نهاية الخدمة وفق النظام (مرفق الحاسبتان)، وأي مبالغ تعاقدية أخرى. يرجى مشاركة تفاصيل المبلغ وتاريخ السداد المتوقع.»

EN — Friendly Settlement filing (cover note)

“Please find attached my contract, payslips/bank proofs, notice letter, and EOS calculations (MHRSD & Qiwa). My claim is for [unpaid wages/EOS/Article 77 compensation]. I’m available for mediation on [three date options].”

AR — إثبات تحويل الأجر

«مرفق كشف الحساب البنكي/قسيمة الراتب للشهر محل المطالبة، ويظهر تاريخ التحويل والمبلغ المتفق عليه.»

EN — Passport retention

“Company documents must not be retained. Kindly return my passport and residency card immediately. If needed, I will present the originals to HR for sighting and return them the same day.”

Checklists — joining, mid‑contract, resignation day‑zero

On joining (first 7 days):

• Scan your contract; confirm probation dates and notice clause.

• Photograph your Iqama once issued; save front/back.

• Create folders: Contract/, Payslips/, Bank/, Leave/, Letters/, EOS/.

• Start a personal hours log if shift‑based.

• Add calendar alerts for probation end, leave accrual, and Iqama renewal.

Mid‑contract (quarterly):

• Reconcile payslip vs bank credit; note any differences.

• Check leave balance and get approvals for planned leave.

• Update your address proof (Ejar/utility) in your bank KYC if you moved.

• Keep a running timeline.md of HR interactions (requests, warnings, approvals).

Resignation day‑zero:

• Draft a concise notice letter with last working day per the contract.

• Export your last 12 months of payslips + bank credits.

• Run both EOS calculators and save PDFs.

• Request an experience letter and service certificate in the same email.

• Ask HR to confirm final settlement date and channel (bank transfer).

Tables — contract types at a glance; EOS vs termination compensation

Contracts at a glance

EOS vs termination compensation (Article 77)

(Citations for these rows appear in the sections above.)

FAQs

Leaves beyond annual — sick leave, exams, maternity, bereavement (principles you can rely on)

Sick leave. If your illness is proven, you are entitled in a single year (continuous or intermittent) to a period on full pay, followed by time on three‑quarters pay, then unpaid for a final tranche, in the sequence and limits set by the Law. You may also ask to combine sick leave with annual leave. Keep your medical reports ready and logged.

Exam leave. If your employer has approved your enrollment, you are entitled to paid leave for the actual exam days for a non‑repeated year; if repeated (or without approval), expect unpaid leave for the exam days. Apply at least 15 days in advance and save your proof of attendance.

Unpaid leave by agreement. You and your employer may agree to unpaid leave; contracts are typically treated as suspended beyond a threshold number of days unless you agree otherwise. Get any unpaid leave in writing with start/end dates.

Maternity, nursing & protection from dismissal. Female workers have defined maternity leave windows and nursing breaks counted as working time, plus protection against termination during pregnancy and maternity‑related illness (up to a capped number of days), with medical reports. Employers must also provide medical care during pregnancy and delivery.

Bereavement (‘iddah) for Muslim widows; bereavement for non‑Muslims. The Law recognizes specific paid leave entitlements after a spouse’s death, with different durations. Keep official supporting documents and notify HR promptly.

Safety, deductions & discipline — know the boundaries

Safety obligations. Employers must maintain a safe, hygienic workplace, provide protective equipment, fire precautions, and training — at no cost to workers. Post safety instructions in Arabic and, where needed, another language workers understand.

Wage deductions & fines. Deductions are restricted and capped; fines must be recorded and disbursed per labour committee/Ministry guidance. If you believe a deduction or delay was unjustified, you can seek return of wrongfully deducted amounts or unpaid wages through complaint channels.

Paid time to seek a new job during notice. If the employer gives notice, you’re entitled to paid time (e.g., a full day per week or equivalent hours) to attend interviews, with prior notification.

Non‑compete/NDAs. Non‑compete clauses must be written and specific (time, place, and role), and may not exceed a defined duration from termination. Confidentiality terms must also be specific. Keep copies of any restrictive covenants.

Practical scenarios (worked examples)

A) Probation ends, performance is fine, but contract not renewed.

• Confirm if your contract is fixed‑term and simply expired or was ended early.

• If expired, compute EOS and request dues per Article 88 timelines.

• If ended early without valid reason and no compensation clause, consider Article 77 compensation in addition to EOS.

B) Resignation at 3 years’ service.

• Give written notice per contract (not less than the statutory minimum).

• Use both EOS calculators; note resignation reductions apply (Article 85).

• Ask HR to confirm last salary, leave encashment (if any), and settlement date.

C) Dismissal for repeated absence.

• Article 80 lists dismissal grounds and warning thresholds for certain absences. If invoked, request copies of warnings and attendance logs.

• If you dispute facts, open Friendly Settlement with your evidence pack.

D) Salary delayed 2 months.

• Save payslips and bank statements; email HR for a payment date.

• If not resolved, file a violation report and open Friendly Settlement; WPS monitors timeliness and can trigger enforcement.

E) Passport held in HR.

• Politely demand return; retention is treated as a violation under ministerial schedules and widely referenced in official/International reporting.

• File a violation report if not resolved within 48 hours.

Templates (you can copy)

1) Resignation notice — indefinite contract Subject: Resignation & Notice — [Name], [Position], Last Working Day [DD‑MMM‑YYYY] Dear [Manager/HR], In accordance with my employment contract and Labour Law Article 75, I hereby give notice to end my employment. My last working day will be [date]. Please confirm my final settlement schedule and documents (experience letter, service certificate). Regards, [Name] — [Mobile] — [Email]

2) Dues & EOS breakdown request Subject: Final Settlement Breakdown — [Name] Dear [HR], Kindly share the itemized breakdown: (1) salary to last day, (2) leave encashment (if applicable), (3) EOS per Articles 84–88 (attached: MHRSD & Qiwa calculator PDFs), and (4) any other contractual amounts. Please confirm the payment date and method. Thanks, [Name]

3) Friendly Settlement cover letter Subject: Friendly Settlement Case — [Name] v. [Company] — Wage/EOS Dear Officer, Attached are my contract, payslips, bank proofs, notice letter, and EOS calculations. My claim: [unpaid wages/EOS/Article 77 compensation]. I’m available for mediation on [three options]. Thank you.

4) Passport retention demand Subject: Immediate Return of Passport & Iqama Originals Dear [HR], Company documents must not be retained. Please return my passport and residency card today. I can present originals for inspection and will return them immediately after sighting. If not resolved, I will file a violation report with MHRSD.

Domestic workers — separate rulebook (quick pointer)

If you’re a domestic worker (e.g., driver, nanny, housekeeper), your rights and procedures are defined in the Regulations for Domestic Workers & the Like and related Musaned guidance — including wage payment, complaint channels, and entitlements. Use the official English guide and Musaned’s labour education pages.

Source list (primary, official — for your records)

• Labour Law (English, 2023 PDF) — probation (Art. 53–54), notice (Art. 75–78), termination grounds (Art. 80–81), EOS (Art. 84–88), wage payment & WPS basis (Art. 90), working hours & Ramadan reduction (Art. 98), safety (Arts. 121–126), leave & sick leave (Arts. 116–118), maternity, nursing, protection (Arts. 151–160).

• MHRSD Wage Protection (WPS) — what the system monitors.

• MHRSD Friendly Settlement — how disputes start.

• MoJ Labour Courts — jurisdiction & timelines (amicable window).

• EOS calculators — MHRSD and Qiwa (cross‑check).

• Passport retention — addressed in MHRSD FAQs/Labour Culture; also referenced internationally (Council of Ministers Decision 166).