FAQs


Is the Saudi worker holding a fixed-term or indefinite contract and can his fixed-term contract become an indefinite period?

The Saudi worker's contract per may be indefinite or fixed by stating that in the contract of employment. Furthermore, the contract of employment could be fixed and then changed to indefinite according to the law in the following cases: The first case: if the parties to the contract continued to perform the contract after the set period. The second case: if the contract is renewed for three consecutive times or the original contract period with the renewal period is four years whichever is less and the parties continued to implement it.

Can the non-Saudi worker contract be indefinite?

The contract of employment of the non-Saudi worker cannot be indefinite; in case the contract of employment does not state the period of contract of employment, the duration of the worker's license shall be taken for the duration of the employment contract.


Termination of employment contract before completing its term.


The fixed term contract terminates when its term expires or by the parties’ consent provided that the employee gives his consent in writing in accordance with Article 74 of the Labor Law unless the contract is terminated under any of the cases set out in Article 74 of the Labor Law or by the parties under Article 80 or 81 of the Law as the case may be.

If termination is not made in accordance with the provisions of any of the above articles and is made without good reason, compensation shall be given for terminating the fixed term contract earlier without legal ground as set out in Article 77 of the labor Law unless the contract provides for a specific compensation for terminating the contract by either party without good reason. The wronged party due to the contract termination deserves a compensation as follows:

The pay of remaining period of the contract term, if it is a fixed term contract. Compensation shall in no case be less than two months’ salary of the employee. In case that the legality of termination reason is disputed, the labor authorities shall decide the legality or illegality of the reason​


What are the types of complaints, which could be provided by the staff member to the employer?


some types of complaints:

  • Delay of salaries (3 months and more)
  • Assigned to different work on the nature of the work agreed upon in the
  • contract signed between the two parties
  • Abuse
  • Lack of employee housing
  • Contrary to one of the conditions for the Decade

Can the employer keep the employee's passport?


​No employer may keep the passport of non-Saudi employee. If the employee requests the employer to keep his passport, he shall sign a written acknowledgment in Arabic and in the employee's language in the relevant form set out in the Regulation (Annex 2) to indicate that the employer has received the employee's passport and the date of receipt.


Can the employer Decrease employee’s salary anytime?


​The employee's salary may not be decreased without his written consent.


Granting annual travel ticket:


Annual travel tickets are governed by the agreement between the employer and the employee and the employer's approved regulations. If the job contract associates the employee's right to the travel ticket value with taking the leave, the employee shall travel to deserve the travel ticket compensation unless his job contract provides otherwise.


Responsibility for Residence, work license and service (sponsorship) transfer fees.


Pursuant to Article 40 of the Labor Law, the employer shall incur the recruitment of expatriate employee, residence and work licenses and their renewal fees and any associated delay fines. Moreover, the employer shall incur the employee's service transfer to him. This provision shall supersede any provision to the contrary in any agreement or contract.


Is the breaks counted in the actual working hours?


According to Article 101 of the Labor Law, breaks taken for rest, prayer and lunch breaks are not counted in the actual working hours. Working hours and breaks are organized during the day such that no employee works more than five consecutive hours without a break not less than half an hour once during the total working hours for rest, prayer and having food and such that the employee does not stay at the workplace more than 12 hours per day.


Maximum hours of overtime:


Employee may be employed overtime according to the work requirements but within the limits provided for by the Law for the maximum working hours of overtime hours by 720 hours a year. Pursuant to Article 107 of the Law, the employer must pay for overtime at the hourly rate (based on the total pay per working hour) plus %50 of basic salary.


What is the legal period in which the worker is entitled to claim their legal rights from their employer?


No lawsuit may be brought before the labor authorities concerning a claim by one of the parties to the labor relationship, to one of the rights provided for in this Law or arising from the contract of employment after 12 months from the date of termination of the employment relationship.