Saudi Labour Law explained, article by article
Plain-language explanations of the most-searched articles of the Saudi Labour Law, as they stand after the amendments in force from 19 February 2025, with worked examples and links to the calculators.
These pages explain the most-searched articles of the Saudi Labour Law as they stand after the amendments in force from 19 February 2025: probation, ending a contract and resignation, notice, Article 77 compensation, Articles 80 and 81, the end-of-service award, overtime and leave. They are general explanations; the official text is the reference.
Contracts and probation
Ending a contract
- Article 74Amended in 2025How an employment contract endsThe cases in Article 74 of the Saudi Labour Law in which a contract ends, the resignation and bankruptcy cases added in 2025, and the new resignation procedure.
- Article 75Amended in 2025Notice period on open-ended contractsNotice under Article 75 of the Saudi Labour Law after the 2025 amendments: 30 days from the worker, 60 from the employer for monthly-paid staff, and notice pay.
- Article 77Compensation for ending a contract without a valid reasonWhat Article 77 of the Saudi Labour Law says, how the compensation is calculated for open-ended and fixed-term contracts, the two-month minimum, and what it does not cover.
- Article 80Dismissal without notice or awardThe nine cases in Article 80 of the Saudi Labour Law where an employer may end a contract without award, notice or compensation, the absence rule and the warnings.
- Article 81When a worker may leave without noticeThe seven cases in Article 81 of the Saudi Labour Law in which a worker may leave without notice and keep all statutory rights, with an end-of-service example.
End-of-service award
- Article 84Calculating the end-of-service awardThe end-of-service formula in Article 84 of the Saudi Labour Law: half a month per year for five years, a month per later year, the wage it uses, and an example.
- Article 85End-of-service award on resignationHow Article 85 of the Saudi Labour Law reduces the end-of-service award on resignation: nothing under two years, one third, two thirds, or the full award, with examples.
Working hours and overtime
- Article 98Working hours and Ramadan hoursWorking hours under Article 98 of the Saudi Labour Law: 8 a day or 48 a week, 6 a day or 36 a week for Muslim workers in Ramadan, and how overtime is counted.
- Article 107Amended in 2025Overtime pay and time off in lieuOvertime under Article 107 of the Saudi Labour Law: the hourly wage plus 50% of the basic hourly wage, holiday hours, and the paid time off in lieu added in 2025.
Leave
- Article 109Annual leave of 21 or 30 daysAnnual leave under Article 109 of the Saudi Labour Law: 21 days, 30 after five consecutive years, paid in advance, no cash in lieu, and what happens to unused days.
- Article 117Sick leave and sick paySick leave under Article 117 of the Saudi Labour Law: 30 days on full pay, 60 at three quarters, 30 unpaid within a year from the first sick leave, with a pay example.
This is general information to help you understand the topic. It is not legal advice. Rules and rates change: always check the official text on the relevant authority’s platform and consult a qualified adviser before acting.
Try RafiqHR on your own company
Start your 30-day trial with no card and a sample company preloaded, or import your people from an Excel file and watch Rafiq AI complete its first request once you approve it.
No card, up to 50 employees, sample company preloaded