This guide collects the main private-sector employee rights in Saudi Arabia on one page, based on the Labor Law issued by Royal Decree M/51, as amended by Royal Decree M/44 of 1446H, effective 19 February 2025. For each right you will find the core rule, the governing article where stated, and a link to the detailed article. This is general legal information, not legal advice and not a promise of any outcome.
Overview of the main rights
| Right | Core rule | Reference | | --- | --- | --- | | End-of-service award | Half a month's wage per year for the first five years, a full month per year thereafter, on the last actual wage | Article 84 | | Award on resignation | Nothing before two years, one third from two to five years, two thirds from five to ten, full award after ten | Article 85 | | Unlawful-termination compensation | 15 days' wage per year of service (indefinite contract) or the remaining term's wage (fixed-term), minimum two months' wage | Article 77 | | Dismissal without award or notice | Narrow, defined cases the employer bears the burden of proving | Article 80 | | Leaving work with full rights | Defined cases including material employer breach, fraud at contracting, or serious workplace danger | Article 81 | | Final settlement deadline | One week when the employer ends the relationship, two weeks when the worker does | Article 88 | | Notice period | 30 days from the worker, 60 days from the employer, on indefinite contracts paid monthly | Labor Law — 2025 amendments | | Annual leave | At least 21 days, rising to 30 after five consecutive years | Labor Law — 2025 amendments | | Maternity leave | 12 weeks at full pay, six of them mandatory after childbirth | Labor Law — 2025 amendments |
The actual wage: the base for every calculation
The Labor Law defines the actual wage as the basic salary plus the increments, allowances, benefits, commissions, and other components due to the worker under the contract, the work organization regulation, or custom. The most common mistake is computing the end-of-service award on basic salary alone, which understates the figure without legal basis. How allowances enter the base is covered in housing and transport allowances in EOSB.
End-of-service award: the rule and the resignation effect
Article 84 sets the rule: half a month's wage per year for the first five years and a full month per year thereafter, with fractions of a year counted proportionally. A simple example: an employee on an actual wage of 10,000 riyals whose employer ends the contract after exactly 5 years — 5 years at half a month at 10,000 = 25,000 riyals.
Resignation changes the fraction under the Article 85 tiers shown in the table above. The full walkthrough with examples is in how the EOSB is calculated, the resignation effect in detail in EOSB on resignation, and an instant itemized figure is available from the end-of-service calculator.
Contract type and notice period
A fixed-term contract ends when its term expires unless renewed; an indefinite contract may be ended by either party subject to the notice and lawful-cause rules under Article 75. A non-Saudi worker's contract must be written and fixed-term, so indefinite-contract rules should not be assumed for non-Saudis without checking the contract. The full comparison is in fixed-term vs indefinite contracts.
On an indefinite contract paid monthly, notice is 30 days when the worker ends the contract and 60 days when the employer does; a party that skips the notice period pays the other an amount equal to the wage of the notice period or its remainder. Details in the notice period under the Saudi Labor Law.
Dismissal: when compensation is due and when rights lapse
Where the employer ends the contract without a lawful cause, Article 77 awards compensation that does not cancel other entitlements such as overdue wages, leave encashment, and the end-of-service award where due. By contrast, Article 80 is the gateway for grave-cause dismissal without award, notice, or compensation in defined cases — and citing the article number in a dismissal letter is not enough, as the employer bears the burden of proving the facts. A worker is likewise not entitled to an award or compensation where the contract ends during the probation period under the Article 54 rules.
See the detailed explainers: Article 77 and unlawful-dismissal compensation, Article 80 dismissal without an award, and the ordered entitlements checklist in employee rights on dismissal without cause.
Wages: delays and deductions
The Wage Protection program monitors establishments' payment of wages, and the Ministry of Human Resources notes that a three-month delay can lead to suspension of the establishment's services, with workers allowed to transfer to another employer without the current employer's consent under the applicable controls. The step-by-step path when a salary goes unpaid is in unpaid wages: your options.
Salary deductions are only permitted in the cases set by law or with valid consent — including recovery of employer loans capped at 10 percent of the monthly wage, social insurance contributions, and statutory fines. The full list is in salary deduction rules.
Leave and working women's rights
Annual leave is at least 21 days, rising to 30 days after five consecutive years with the same employer. The worker is entitled to the leave wage in advance and to encashment of accrued unused days when the relationship ends — see annual leave and encashment.
After the 2025 amendments, maternity leave is 12 weeks at full pay, six of which are mandatory after childbirth, with an optional one-month unpaid extension. The employer is prohibited from dismissing a female employee, or warning her of dismissal, during pregnancy or maternity leave under the statutory conditions and periods — see maternity leave and dismissal protection.
Overtime and non-compete clauses
The default rule is that an overtime hour is paid at the hourly wage plus 50 percent of the basic wage, with newer regulations allowing compensation through paid leave subject to conditions and the worker's consent. A non-compete clause must be written and defined in time, place, and type of work, and may not exceed two years from the end of the relationship.
The labor complaint path
A labor dispute usually starts with amicable settlement at the Ministry of Human Resources; if no settlement is reached, the case is referred to the Labor Court within 21 working days of the first session, and the statement of claim is filed through Najiz's judicial services. Steps, documents, and a claims template are in how to file a labor complaint. After the relationship ends, Article 88 requires final settlement within one week when the employer ended the contract and within two weeks when the worker did.
When do you need a licensed lawyer?
The rules above are general, and some situations turn on the facts and documents of the specific case: a dismissal letter citing Article 80 where the facts are disputed, a contract with special compensation or non-compete clauses, a dispute over which wage components count as actual wage, a settlement offer on the table before the conciliation session, or a labor claim entangled with other claims. In those situations, reviewing the contract, payslips, and correspondence with a lawyer licensed in labor matters is the appropriate path before making any decision.