Saudi employment contracts, probation, notice and leave: the rules after the 2025 amendments
A Saudi employment contract is written in Arabic, documented on Qiwa and, for a non-Saudi, always fixed-term (one year if no term is stated). Probation can last up to 180 days in total, an indefinite monthly-paid contract needs 60 days' notice from the employer and 30 from the employee, and annual leave is at least 21 days, rising to 30 after five consecutive years. Working time is capped at 9 hours a day or 45 a week, and 7 hours a day or 35 a week for Muslim employees in Ramadan.
Contracts, probation and notice in Saudi Arabia
- Ministry-model contracts on Qiwa
- Probation within the 180-day cap
- Resignations answered within 30 days
Saudi employment contracts now have to sit on Qiwa to count
What happened
From 15 April 2026 the Ministry of Human Resources and Social Development calculates Saudization rates from employment contracts documented electronically on the Qiwa platform. The Ministry bases this on Council of Ministers Resolution No. 195 of 9 November 2021, which gave it the job of regulating how contracts are documented.
What it means for you
A signed paper contract is no longer enough on its own. Each Saudi employee's contract has to be documented on Qiwa, or that person drops out of your Saudization rate and can pull your company into a lower Nitaqat band.
Dates to know
- 19 February 2025Amended Labor Law in force, including documented contracts (Article 51)
- 15 April 2026Saudization rates calculated from Qiwa-documented contracts only
Source: Ministry of Human Resources and Social Development. We check this page every week. Last checked .
This page covers the terms that shape a Saudi job from the first day to the last: the type of contract, the language it is written in and where it is recorded, probation, notice, resignation, annual leave and working hours. They all come from one statute, the Labor Law issued by Royal Decree M/51, as amended with effect from 19 February 2025. Two systems sit around it. Qiwa is the Ministry's platform where contracts are documented. Nitaqat is the Saudization programme, which now counts only Qiwa-documented contracts. The end-of-service award and GOSI contributions have their own pages.
What types of employment contract are allowed in Saudi Arabia?
A contract is either fixed-term or indefinite. A contract for a non-Saudi must be written and fixed-term, and since February 2025 a non-Saudi contract with no stated term counts as one year from the actual start date, renewed for a similar period if work continues (amended Article 37).
Saudi nationals can be employed on indefinite contracts. A fixed-term contract ends when its term runs out (Article 74). If both sides simply carry on, Article 55 treats it as renewed for an indefinite period, but expressly subject to Article 37 for non-Saudis, whose contracts must stay fixed-term. Where a fixed-term contract has a renewal clause, it becomes indefinite once it has been renewed three times in a row, or once the original term and renewals reach four years, whichever is shorter, and the parties carry on (Article 55). Article 37 still requires a non-Saudi's contract to be fixed-term.
Does a Saudi employment contract have to be in Arabic and on Qiwa?
Yes to both. Arabic is the language of employment contracts, and where another language is also used the Arabic text prevails (Article 9). Since February 2025 the contract must be written in two copies and documented as the regulations require (amended Article 51), which in practice means the Qiwa platform.
The contract follows the Ministry's unified model for each type of contract. As a minimum it names the employer and its location, the employee's name, nationality, ID details and address, the agreed pay including allowances and benefits, the type and place of work, the start date, the term if fixed, and each side's basic rights and obligations (amended Article 52). Since 15 April 2026 the Ministry counts only Qiwa-documented contracts when it calculates an employer's Saudization rate.
How long can probation last in Saudi Arabia?
Up to 180 days in total, in all cases. Probation only applies if the contract states it expressly with its length, and either side can end the contract during it (amended Article 53).
Before February 2025 the limit was 90 days, extendable in writing to 180. The amended article sets one overall cap and leaves the regulations to say which leave does not count towards it. An employee cannot be put on probation twice by the same employer, unless both sides agree in writing and the new probation is for a different profession or job, or at least six months have passed since the earlier employment ended (Article 54). If the contract ends during probation, neither side is owed compensation and no end-of-service award is due.
How much notice is needed to end an indefinite contract?
Where pay is monthly, the employer must give at least 60 days' written notice and the employee at least 30 days. Where pay is not monthly, either side gives at least 30 days. Notice needs a legitimate reason, stated in writing (amended Article 75).
Before February 2025 the minimum was 60 days for both sides on monthly pay. A side that does not give the notice owes the other the wage for the notice period (Article 76). While the employer's notice runs, the employee may take one paid day or eight paid hours a week to look for work, and the employer may release the employee from attending without affecting service or pay for the period (Article 78).
What does it cost to end a contract for an invalid reason?
Unless the contract sets its own figure, 15 days' wage for each year of service on an indefinite contract, or the wage for the rest of the term on a fixed-term contract, and never less than two months' wage (Article 77).
Worked example (our arithmetic): an employee on an indefinite contract with 2 years' service is dismissed without a valid reason. Two years at 15 days a year is 30 days' wage, which is less than two months' wage, so the two-month minimum applies. With 6 years' service the figure is 90 days' wage, which is above the minimum and is owed instead. This compensation sits on top of the end-of-service award and any notice pay.
How does resignation work in Saudi Arabia since 2025?
A resignation is treated as accepted if the employer has not replied within 30 days. Before those 30 days run out, the employer can postpone acceptance by up to 60 days if the work needs it, with a written explanation (Article 79 bis, in force 19 February 2025).
The employee can withdraw the resignation within 7 days of submitting it, unless the employer has already accepted. The request cannot name a deferred leaving date. The contract stays in force while the request is pending, so both sides keep their obligations, and the employee keeps all rights under the law once the contract ends. How much end-of-service award a resigning employee receives depends on length of service; see the end-of-service award page.
How much annual leave do Saudi employees get?
At least 21 days of paid annual leave a year, rising to at least 30 days after five consecutive years with the same employer (Article 109). Leave is paid in advance and cannot be given up or swapped for cash while the employee is still employed.
The employer sets the leave dates to suit the work and must tell the employee at least 30 days ahead. With the employer's approval, leave can be carried into the next year, and the employer can postpone it by up to 90 days for work reasons, or longer with the employee's written consent, but not beyond the end of the following year (Article 110). On leaving, the employee is paid for leave days earned and not taken, including a proportionate share for part of a year (Article 111). The 2025 amendments did not change these articles.
What are the working hours and overtime rules, including Ramadan?
Up to 9 hours a day where the employer uses a daily standard, or 45 hours a week under a weekly standard. In Ramadan, actual working hours for Muslim employees fall to at most 7 hours a day or 35 hours a week (Article 98). Overtime is paid at the hourly wage plus 50% of the basic wage (Article 107).
No one may work more than five hours in a row without a break of at least 30 minutes, or stay at the workplace more than 12 hours a day (Article 101). In set cases such as stocktaking for up to 30 days a year, preventing an accident or handling unusual pressure of work, these limits can be exceeded, but actual hours may not go above 10 a day or 60 a week (Article 106). Since February 2025 the employer may, with the employee's consent, give paid days off instead of overtime pay (amended Article 107). Hours worked on holidays and Eids count as overtime.
Key figures
| Detail | Value |
|---|---|
| Contract language | Arabic; where another language is also used, the Arabic text prevails (Article 9). (source) |
| Non-Saudi contracts | Written and fixed-term; with no stated term, one year from the actual start date, renewed for a similar period if work continues (amended Article 37). (source) |
| Documentation | Two copies, documented as the regulations require (amended Article 51); since 15 April 2026 only Qiwa-documented contracts count towards Saudization. (source) |
| Probation | Stated expressly in the contract with its length; 180 days in total at most in all cases (amended Article 53). (source) |
| Second probation | Not more than once with the same employer, unless agreed in writing for a different profession or job, or after at least six months since the earlier employment ended (Article 54). (source) |
| Notice, indefinite contracts | Monthly pay: at least 60 days from the employer, at least 30 days from the employee. Other pay: at least 30 days either side (amended Article 75). (source) |
| Invalid termination | Unless the contract sets compensation: 15 days' wage per year (indefinite) or the wage for the rest of the term (fixed-term), at least two months' wage (Article 77). (source) |
| Resignation | Deemed accepted after 30 days without a reply; employer may postpone acceptance up to 60 days with written reasons; employee may withdraw within 7 days unless already accepted (Article 79 bis). (source) |
| Annual leave | At least 21 days, rising to at least 30 days after five consecutive years with the employer; at least 30 days' notice of the leave dates (Article 109). (source) |
| Working hours | Up to 9 hours a day or 45 a week; in Ramadan up to 7 hours a day or 35 a week for Muslim employees (Article 98). (source) |
| Overtime | Hourly wage plus 50% of the basic wage; since February 2025, paid days off instead with the employee's consent (amended Article 107). (source) |
Frequently asked questions
Can probation in Saudi Arabia be extended past 180 days?
No. Since 19 February 2025 the amended Article 53 caps probation at 180 days in total in all cases. The regulations decide which leave is not counted towards that total.
Can an employee be paid instead of taking annual leave?
Not while the employment continues. Article 109 bars giving up leave or taking cash in lieu during service. When the employment ends, Article 111 requires payment for leave days earned and not taken.
Does a fixed-term contract need notice to end?
No. It ends when its term expires (Article 74). Ending it early for an invalid reason costs the wage for the rest of the term, with a two-month minimum, unless the contract sets other compensation (Article 77).
Can a resignation letter name a leaving date months ahead?
No. Article 79 bis says a resignation request may not specify a deferred date. The leaving date follows the procedure instead: acceptance by the employer, 30 days without a reply, or the end of a postponement of up to 60 days.
Do the Ramadan hours apply to every employee?
No. Article 98 reduces actual working hours during Ramadan for Muslim employees, to at most 7 hours a day or 35 hours a week. The normal limits of 9 hours a day or 45 a week apply to everyone else.
Each of the six Gulf states writes its own labour law, its own end-of-service rules and its own quota for hiring citizens. When Teamed is your legal employer, we apply the right rules for the country each person works in and update your contracts, policies and payroll as the law changes, so you never have to read a statute to stay compliant.
