Questions on employment contracts & Saned

1. 01My employer ended my fixed-term contract six months early. Is two months' pay enough compensation?

   Not necessarily. Where the termination had no legitimate reason and the contract sets no compensation, you are owed the wage for the remaining term, with a minimum of two months' wage. Check the probation period, the reason given and the contract terms, and add your other dues, such as unpaid wages, leave balance and the end-of-service award.

   SourceLabor Law, Arts. 54 and 77 (Ministry of Human Resources)

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2. 02Does a restructuring exempt the company from compensating the employee?

   Not by the label alone. Calling a termination a restructuring does not make it lawful. What matters is what actually happened and what the contract says. Abolishing a single position is treated differently from closing the business for good or ending the activity under the conditions the law sets.

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3. 03Does signing a release stop an employee from claiming his rights?

   It depends on when it was signed and what it says. A waiver of statutory rights signed while the contract is still running is void, unless it is more favourable to the worker. After the contract ends, the release is judged on its terms, the circumstances of signing and the sums actually received.

   SourceLabor Law, Art. 8 (Ministry of Human Resources)

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4. 04Do I have to pay a fixed sum if I end my employment contract?

   No fixed sum applies to every termination. What you owe, if anything, depends on the reason for ending the contract, its type, and whether a compensation clause exists and applies. An employer's demand for a sum does not, by itself, prove it is due.

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5. 05My contract as a non-Saudi worker shows one year, but we agreed on two. Which term applies?

   What the parties agreed in the contract and its amendments governs. Not every non-Saudi contract runs for one year. The one-year term, counted from the actual start date, applies only where the contract states no term.

   SourceLabor Law amendments, Art. 37 (Umm Al-Qura gazette)

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6. 06I pressed the button to end my contract on Qiwa by mistake. Can I undo it?

   That depends on the type of request and its status, so check both at once and report the mistake in writing. If it was a resignation, you may withdraw it within seven days of submitting it, unless the employer accepted it before you withdrew.

   SourceLabor Law amendments, Art. 79 bis (Umm Al-Qura gazette)

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7. 07Is six months of service enough to qualify for Saned?

   Not on its own for a first claim. A first claim requires at least 12 months of work covered by the scheme within the 36 months before the claim. Earlier covered employment within that window can make up the difference, provided the other conditions are met.

   SourceUnemployment Insurance (Saned) Law, Art. 14 (GOSI)

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8. 08Can I claim Saned if my employer let me go in a restructuring?

   You may be able to. A covered Saudi worker can qualify after losing a job for reasons beyond his control, if he meets the conditions, including the qualifying contribution periods. A restructuring does not in itself bar a claim, provided the reason for ending your registration is recorded correctly.

   SourceUnemployment Insurance (Saned) Law, Art. 8 (GOSI)

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9. 09My employer recorded the wrong reason for ending my registration. What should I do?

   Ask the employer to correct it, attaching the termination letter, the contract and your correspondence. If it is not corrected, apply to GOSI to amend the reason, with your evidence. If there is an employment dispute, take the competent route to establish how the relationship actually ended.

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10. 10My job has ended but my Qiwa contract is still active. Can I apply for Saned?

    The Qiwa record alone neither proves nor rules out eligibility. Check your contribution status, the recorded reason for ending your registration and its date with GOSI, and ask for any mismatch in the data to be corrected.

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11. 11Can an employee claim his rights if he has no written contract?

    Yes. An employment contract exists even if it was never put in writing. In that case the employee alone may prove the contract, and the rights arising from it, by any means of proof, such as messages, salary transfers or witnesses. Either party may ask at any time for the contract to be put in writing. As a rule, the contract should be written in two copies and documented as the Implementing Regulation requires.

    SourceLabor Law, Art. 51 (Ministry of Human Resources)Labor Law amendments, Art. 51 (Umm Al-Qura gazette)

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12. 12What is the maximum probation period in an employment contract?

    180 days in total. Probation must be stated expressly in the contract, with its length clearly defined. It may be split into consecutive periods if the contract says so when it is signed. The Eid al-Fitr and Eid al-Adha holidays, the National Day and Founding Day holidays, and sick leave do not count towards it. This cap has applied since 19 February 2025; before that, probation was 90 days, extendable by written agreement.

    SourceLabor Law, Art. 53 (Ministry of Human Resources)Labor Law Implementing Regulation, Art. 19 (Ministry of Human Resources)Labor Law amendments, Art. 53 (Umm Al-Qura gazette)

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13. 13Can the same employer put an employee on probation a second time?

    Only in two cases, and only by written agreement. The rule is that an employee may be placed on probation only once with the same employer. The exceptions are where the new probation is for a different occupation or job, or where at least six months have passed since the employee's earlier employment with that employer ended.

    SourceLabor Law, Art. 54 (Ministry of Human Resources)

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14. 14Is an employee owed compensation if his contract ends during probation?

    No. If the contract is ended during probation, neither party is owed compensation, and the employee earns no end-of-service award for that period. Either party may end the contract during probation. This depends, however, on the probation being stated expressly in the contract, with a defined length of no more than 180 days.

    SourceLabor Law, Arts. 53 and 54 (Ministry of Human Resources)

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15. 15Can an employer transfer an employee to another city without his consent?

    Not as a rule. An employee may not be moved, without his written consent, from his original place of work to one that requires him to change his place of residence. The exception is a temporary assignment to a different location where emergency circumstances make it necessary, for no more than 30 days a year. In that case the employer bears the employee's travel and accommodation costs for that period.

    SourceLabor Law, Art. 58 (Ministry of Human Resources)

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16. 16Can an employee be assigned work that is substantially different from his job?

    Not without his written consent. The exception is a case of necessity arising from emergency circumstances, for no more than 30 days a year. If the employer imposes such work without the employee's consent and outside that exception, the employee may leave without notice and keep all his statutory rights.

    SourceLabor Law, Arts. 60 and 81 (Ministry of Human Resources)

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17. 17Is an employee paid if he turns up for work and the employer prevents him from working?

    Yes. If the employee reported for work at the set time, or showed that he was ready to work at that time, and the only thing that stopped him was a reason attributable to the employer, he is owed his wage for the period he did not work. It is wise to keep written proof of attendance or readiness.

    SourceLabor Law, Art. 62 (Ministry of Human Resources)

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18. 18Can an employee ask for an experience certificate when his job ends?

    Yes. When the contract ends, the employer must give the employee, on request and free of charge, a service certificate stating the date he joined, the date the relationship ended, his occupation and his last wage. The certificate may not include anything that could harm the employee's reputation or reduce his job prospects. The employer must also return any certificates or documents the employee deposited with him.

    SourceLabor Law, Art. 64 (Ministry of Human Resources)

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19. 19What notice period applies when an indefinite-term employment contract is ended?

    On a monthly wage, at least 30 days' notice from the employee and at least 60 days' notice from the employer. Notice must be in writing and the termination must rest on a legitimate reason. Where the wage is not paid monthly, whichever party ends the contract must give at least 30 days' notice. These periods have applied since 19 February 2025; before that, the period on a monthly wage was 60 days for both parties.

    SourceLabor Law, Art. 75 (Ministry of Human Resources)Labor Law amendments, Art. 75 (Umm Al-Qura gazette)

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20. 20Is either party owed compensation if the other ignores the notice period?

    Yes. A party that ends an indefinite-term contract without observing the notice period must pay the other party a sum equal to the employee's wage for the notice period not observed. The parties may agree on a higher amount.

    SourceLabor Law, Art. 76 (Ministry of Human Resources)

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21. 21Can an employee take time off to look for a job during the notice period?

    Yes, if the notice came from the employer. The employee may take one full day a week, or eight hours during the week, to look for other work, and is paid for that time. He chooses the day or hours, provided he tells the employer at least one day in advance. The employer may instead release him from work for the rest of the notice period; his service then counts as continuing until the period ends, and he is paid for it.

    SourceLabor Law, Art. 78 (Ministry of Human Resources)

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22. 22When can an employee be dismissed for absence without a valid excuse?

    When he has been absent without a legitimate reason for more than 30 days in one contract year, or for more than 15 consecutive days. The dismissal must be preceded by a written warning, given after 20 days' absence in the first case and after 10 days' absence in the second, and the employer must give him the chance to state his objections. If those conditions are met, the contract may be terminated without the end-of-service award, notice or compensation.

    SourceLabor Law, Art. 80 (Ministry of Human Resources)

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23. 23Can an employee leave without notice if the employer breaches his obligations?

    Yes, in the cases the Labor Law lists, and he keeps all his statutory rights. They include the employer failing to meet his essential contractual or statutory obligations to the employee, deceiving him about the terms and conditions of work when the contract was made, or assigning him, without his consent, work substantially different from what was agreed. They also include harsh, unjust or humiliating treatment by the employer or the responsible manager, and a serious danger to the employee's safety or health at the workplace that the employer knew of and took no steps to remove. Document the breach before you leave.

    SourceLabor Law, Art. 81 (Ministry of Human Resources)

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24. 24How is the end-of-service award calculated under the Labor Law?

    Half a month's wage for each of the first five years of service, and a full month's wage for each year after that, calculated on the last wage. Part-years count pro rata. So seven years of service earns four and a half months' wages where the full award is due. The parties may agree to leave commissions, sales percentages and similar variable elements of pay out of the wage used for the calculation. The award is reduced on resignation, depending on length of service.

    SourceLabor Law, Arts. 84, 85 and 86 (Ministry of Human Resources)

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25. 25Is an employee who resigns entitled to the end-of-service award?

    Yes, once he has at least two consecutive years of service. He receives one third of the award for two to five years of service, two thirds for more than five but less than ten years, and the full award for ten years or more. Below two years he receives nothing. He receives the full award if he left because of force majeure beyond his control, as does a female employee who ends her contract within six months of her marriage contract or within three months of giving birth.

    SourceLabor Law, Arts. 85 and 87 (Ministry of Human Resources)

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26. 26When must the employer pay an employee's final dues?

    Within one week at most from the end of the employment relationship. If it was the employee who ended the contract, the employer has no more than two weeks. The employer may deduct from the amounts due any debt the employee owes him in connection with the work.

    SourceLabor Law, Art. 88 (Ministry of Human Resources)

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27. 27Is a non-compete clause valid if it bars the employee from any future work without limits?

    No. An employer may require an employee not to compete after the contract ends if the employee's work gives him knowledge of the employer's clients and the clause protects the employer's legitimate interests. To be valid, the clause must be in writing and limited in time, place and type of work, and it may not run for more than two years from the end of the relationship. A blanket ban on any future work does not meet those conditions. The employer may sue over a breach within one year of discovering it.

    SourceLabor Law, Art. 83 (Ministry of Human Resources)

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These answers are brief general information. They are no substitute for a review of the facts and documents of a particular matter.