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Al Falah is a neighborhood in Riyadh, so employment relationships there are governed by Saudi Arabia’s national labor framework, primarily the Saudi Labor Law, regulations of the Ministry of Human Resources and Social Development, the Wage Protection System, the General Organization for Social Insurance rules, and the Council of Cooperative Health Insurance requirements. Employers in Al Falah must also follow Saudization quotas under the Nitaqat program, comply with occupational safety and health standards, and respect data protection obligations under the Personal Data Protection Law. Disputes are handled through the Amicable Settlement offices and the Labor Courts located in Riyadh. Although employment law is national, local procedures and practical timelines can vary in Riyadh, so having guidance tailored to Al Falah can be helpful.
Employers and employees in Al Falah often seek legal help when drafting or reviewing Arabic employment contracts, choosing the right contract type, and setting clear probation terms. Companies planning to hire expatriates usually need assistance with sponsorship matters, job mobility rules, visa compliance, and Saudization strategy. Payroll and benefits compliance is another common trigger, including Wage Protection System setup, end-of-service calculations, overtime, and leave entitlements. Employers facing performance, misconduct, or redundancy issues need advice on lawful termination, notice, documentation, and settlement. Employees frequently consult lawyers about unpaid wages, unfair dismissal, contract changes, transfer of sponsorship, or non-compete disputes. Both sides may require representation in amicable settlement proceedings or before the Labor Court in Riyadh. Legal counsel is also useful for policies on anti-harassment, remote work, health and safety, and data privacy compliance.
Contracts and language. Written employment contracts are standard and should be in Arabic. Bilingual contracts are common, but the Arabic version prevails in case of conflict. Contracts must specify job title, duties, wages, workplace, leave, and notice terms.
Probation. Probation can be up to 90 days, excluding official holidays and sick leave, and may be extended up to 180 days by written agreement before probation starts. Termination during probation must meet legal conditions and wage obligations through the last day worked.
Working hours and overtime. The typical maximum is 8 hours per day or 48 hours per week. During Ramadan, Muslim workers typically have reduced hours. Overtime is generally paid at not less than 150 percent of the hourly wage for hours beyond the legal limits or when work is performed on weekly rest days or public holidays, subject to the law’s calculation rules.
Leave. Annual leave is at least 21 paid days per year, increasing to 30 days after 5 years of service with the same employer. Sick leave may reach up to 120 days per year with varying pay levels by period. Maternity leave is 10 weeks, with pay dependent on length of service and legal conditions. Paternity leave is commonly 3 days. Hajj leave may be granted once during employment if conditions are met. Employers should verify current entitlements and internal policy terms.
Wages and the Wage Protection System. Employers must pay wages on time through compliant channels and report payroll to the Wage Protection System. Persistent wage delays can trigger penalties and allow employees to transfer employment under specified conditions.
Social insurance and health insurance. Employers must register employees with the General Organization for Social Insurance, pay required contributions, and report wages accurately. Health insurance coverage through a licensed insurer is mandatory for private sector employees under the Council of Cooperative Health Insurance rules.
Saudization and hiring expatriates. The Nitaqat program sets minimum ratios of Saudi nationals by sector and company size. Hiring non-Saudis requires proper work authorization and compliance with job mobility rules. The Labor Reform Initiative allows eligible employees to change jobs under defined conditions, including contract expiry or documented employer breaches.
Termination and end-of-service benefits. Termination must follow lawful grounds and procedures. Notice periods often range from 30 to 60 days depending on contract type and pay frequency. Certain serious misconduct can justify termination without notice if legal criteria are met. End-of-service benefits generally accrue at half a month of wage for each of the first 5 years and one month for each subsequent year, with special rules for resignation and specific scenarios. Accurate calculation depends on contract terms and service history.
Anti-harassment and equal treatment. Employers must maintain a workplace free from harassment and discrimination and implement policies and reporting channels consistent with national law.
Occupational safety and health. Employers must assess risks, train employees, provide personal protective equipment, and report incidents in line with occupational safety regulations.
Data protection. Employers processing employee personal data must comply with the Personal Data Protection Law, including lawful basis, purpose limitation, security safeguards, cross-border transfer rules, and transparency requirements.
Dispute resolution in Riyadh. Most disputes begin with Amicable Settlement at the local labor office. Unresolved cases proceed to the Labor Court under the Ministry of Justice. Deadlines for filing claims are strictly enforced, so timely action is important.
Saudi national labor legislation applies, including the Saudi Labor Law, implementing regulations, and circulars issued by the Ministry of Human Resources and Social Development. Local procedures in Riyadh govern how you file and attend amicable settlement sessions and court hearings.
Yes. The official version should be in Arabic. You can use a bilingual contract for clarity, but the Arabic text will control. Ensure the contract includes job title, duties, workplace, wage components, working hours, leave, probation, notice, and applicable policies.
The general limit is 8 hours per day or 48 hours per week, with reductions for Muslim workers during Ramadan. Overtime is paid at not less than 150 percent of the hourly wage when legal thresholds are exceeded or for work on weekly rest days or public holidays, as defined by the law.
Probation can be up to 90 days, excluding official holidays and sick leave, and can be extended up to 180 days if agreed in writing before it begins. Termination during probation must respect statutory requirements and immediate payment of due wages and benefits.
The typical formula is half a month’s wage for each of the first 5 years and one month’s wage for each subsequent year, based on the final wage used for calculation. Resignation or dismissal for cause affects the amount. Because details matter, have a lawyer verify the figures before settlement.
Employers must meet Saudization quotas, secure work authorization, issue compliant contracts, and pay wages through the Wage Protection System. Job mobility is possible under specific conditions. Non-compliance can result in fines, blocked services, or litigation.
Mandatory items include WPS-compliant payroll, GOSI registration and contributions, and health insurance coverage. Statutory leave, rest days, and end-of-service benefits apply. Internal policies can provide additional benefits but cannot undercut legal minimums.
For many indefinite contracts, notice is typically 60 days for monthly paid employees and 30 days for others, unless a longer period is agreed. Termination for specified serious causes may occur without notice if the law’s conditions and procedures are fully met.
Start with the Amicable Settlement process at the local labor office, where a conciliator attempts to resolve the dispute. If unresolved within the statutory timeframe, the case can be elevated to the Labor Court in Riyadh. Keep payslips, WPS records, and correspondence for evidence.
Essential policies include a compliant employment contract template, code of conduct, anti-harassment and grievance procedures, working hours and overtime policy, leave policy, health and safety procedures, data privacy notice, disciplinary policy, and clear end-of-service and exit procedures.
Ministry of Human Resources and Social Development - for labor regulations, inspections, amicable settlement, and Saudization guidance.
Qiwa - for digital services related to contracts, job mobility, and work authorization.
Mudad - for Wage Protection System payroll compliance and wage file processing.
General Organization for Social Insurance - for registration, contributions, and benefits administration.
Council of Cooperative Health Insurance - for mandatory health insurance policy requirements.
Riyadh Labor Court and Amicable Settlement Office - for dispute resolution and litigation in the Riyadh region.
Saudi Data and Artificial Intelligence Authority - for the Personal Data Protection Law guidance relevant to HR data.
Riyadh Chamber of Commerce - for local business support and employer compliance information.
Clarify your objectives. Define whether your issue involves hiring, policy setup, payroll and benefits, performance or misconduct, termination, or a dispute. Write down a clear timeline and the outcome you seek.
Collect key documents. Gather contracts, offer letters, addenda, company policies, WPS payroll files, payslips, GOSI records, health insurance cards, warning letters, performance reviews, emails, and any settlement drafts.
Check deadlines. Employment claims have filing time limits. If wages are overdue or termination has occurred, act quickly to avoid losing rights.
Consult a qualified lawyer in Riyadh. Choose counsel experienced with Saudi Labor Law and proceedings at the Riyadh Amicable Settlement office and Labor Court. Ask about scope, fees, and expected timelines.
Stabilize compliance. Ensure WPS uploads are current, GOSI records are accurate, health insurance is active, and contracts are in Arabic with correct clauses for probation, notice, and overtime.
Document communications. Keep written records of warnings, performance plans, settlement offers, and notices. Use Arabic where possible, and obtain acknowledgments of receipt.
Consider amicable settlement. Many disputes resolve quickly with a well-drafted settlement that covers end-of-service benefits, notice pay, releases, and return of property. Have agreements reviewed before signing.
Follow through on implementation. After any resolution, update payroll, cancel or transfer work authorization as required, issue experience certificates, and retain records in line with data protection requirements.
This guide provides general information only. For advice on your specific situation in Al Falah, consult a licensed lawyer in Riyadh.