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About Employment & Labor Law in Al Falah, Saudi Arabia

Employment and labor matters in Al Falah follow Saudi Arabia’s national Labor Law and related regulations. Al Falah is a neighborhood within Riyadh, so the same rules that apply across the Kingdom govern hiring, wages, working hours, leave, termination, safety, and dispute resolution. Oversight and enforcement are primarily handled by the Ministry of Human Resources and Social Development, with labor disputes adjudicated by specialized Labor Courts under the Ministry of Justice. For expatriate workers, employment rules often intersect with residency and mobility regulations, which are administered through national platforms and procedures. Arabic is the official language for contracts and court proceedings, and the Arabic version of a contract typically prevails.

Why You May Need a Lawyer

Many employment issues can be addressed directly with an employer or through government platforms, but legal counsel can be vital when the situation is complex or contested. You may need a lawyer if you are facing unpaid wages or delayed salary transfers, termination or disciplinary action you believe is unfair, contract disputes over duties, benefits, or non-compete clauses, workplace harassment, discrimination, or retaliation, occupational injuries or unsafe working conditions, changes in sponsorship or job mobility that affect your legal status, end-of-service benefit calculations or disputes, breaches of confidentiality or misuse of personal data, or collective workforce measures such as restructuring, redundancy, or Saudization compliance. A local lawyer can help you understand your rights, prepare evidence, navigate friendly settlement procedures, and represent you before the Labor Court if needed.

Local Laws Overview

Employment contracts must be in writing for clarity, with Arabic as the controlling language. For many expatriate workers, contracts are fixed term. Saudi nationals may have fixed term or indefinite contracts. Probation can be agreed in writing and may extend up to 180 days in total. During probation, either party may end the relationship if conditions are met in the contract and law.

Working time is generally capped at 8 hours per day or 48 hours per week. During Ramadan, Muslim employees typically work reduced hours. Employees must be given daily rest breaks and at least one weekly rest day. Overtime is compensated at a premium, commonly 150 percent of the hourly wage for hours beyond the standard schedule, with special rules for work on weekly rest days and public holidays.

Wages must be paid on time through approved banking channels under the Wage Protection System. Unlawful deductions are prohibited. Employers should not retain passports or residency permits. Employees must be registered for social insurance as required by law.

Leave entitlements include annual leave of at least 21 paid days per year rising to 30 days after 5 years of service, sick leave of up to 120 days per year with a defined pay structure across that period, maternity leave of 10 weeks with pay linked to length of service, paternity leave, marriage leave, and bereavement leave. Public holidays include Eid periods, National Day, and Founding Day, with dates varying for lunar holidays.

Termination rules depend on the contract type and reason. For indefinite contracts, notice is typically 60 days for monthly paid employees and 30 days for others, unless the contract sets a longer period. Immediate termination requires a legally valid cause. End-of-service benefits are owed at separation and are generally calculated as half a month’s wage for each of the first 5 years and one month’s wage for each subsequent year, pro-rated for partial years. Different formulas can apply in the case of resignation and specific circumstances defined by law.

Anti-discrimination and anti-harassment protections apply in the workplace. Employers must provide a safe and healthy work environment, comply with occupational safety standards, and report incidents as required. For expatriates, job mobility is possible in many cases under labor reforms, subject to eligibility and procedural requirements.

Disputes typically start with an amicable or friendly settlement stage facilitated by the Ministry of Human Resources and Social Development. If unresolved, cases proceed to the Labor Court. There are time limits to file claims, so acting promptly is important.

Frequently Asked Questions

Do I need a written employment contract in Al Falah

While employment can be evidenced in various ways, a written contract in Arabic is strongly recommended and often required for compliance and dispute resolution. The Arabic text controls if there is a conflict with a translation. Important terms include job title, duties, wage, allowances, work location, hours, leave, probation, notice, and contract duration.

How does the probation period work

Probation must be agreed in writing. It can be up to 90 days and may be extended by agreement, with the total probation not exceeding 180 days. During probation, either party may terminate if permitted in the contract and the law. Certain leave days are not counted toward the probation total.

What are standard working hours and overtime pay

The general maximum is 8 hours per day or 48 per week, with reduced hours for Muslim employees during Ramadan. Overtime must be paid at a statutory premium, commonly 150 percent of the hourly wage for overtime hours. Work on weekly rest days and public holidays has additional rules. Employers must also provide daily and weekly rest.

What leave am I entitled to

Annual leave is at least 21 paid days per year, increasing to 30 after 5 years of service. Sick leave can be up to 120 days in a service year with staged pay. Maternity leave is 10 weeks, with pay depending on length of service. Paternity leave, marriage leave, and bereavement leave are also recognized. Public holidays include the Eid periods, National Day, and Founding Day.

How are salaries paid and what if mine is delayed

Private sector employers must pay through approved banks under the Wage Protection System. If your salary is delayed or underpaid, you can first raise the issue internally, then file a complaint with the Ministry of Human Resources and Social Development for friendly settlement. A lawyer can help you gather proof such as bank statements, pay slips, and contracts.

Can my employer keep my passport or iqama

Employers should not retain passports or residency permits. Employees should have possession of their personal documents. If your documents are being held, request their return in writing and consider seeking help from the Ministry or legal counsel if the issue persists.

What is the end-of-service benefit and how is it calculated

The end-of-service benefit is a statutory gratuity owed when employment ends. The standard formula is half a month’s wage for each of the first 5 years of service and one month’s wage for each subsequent year, with pro-rating for partial years. In cases of resignation, different entitlements may apply based on length of service and specific legal exceptions.

How are terminations handled and what notice is required

Terminations must comply with contract terms and the Labor Law. For indefinite contracts, the minimum notice is typically 60 days for monthly paid employees and 30 days for others, unless the contract stipulates a longer period. Immediate termination requires a legally valid reason. Unlawful termination can lead to compensation claims and other remedies.

Are non-compete clauses enforceable in Saudi Arabia

Non-compete clauses can be enforceable if they are necessary to protect legitimate business interests and are reasonable in scope, geography, and duration. They must be in writing and clearly specify limits. Overbroad restrictions are less likely to be upheld. A lawyer can assess whether your clause is likely to be enforceable.

How do I resolve a labor dispute in Al Falah

Most disputes begin with a complaint to the Ministry of Human Resources and Social Development for friendly settlement. If not resolved, the case can be transferred to the Labor Court. Keep all relevant documents, act within legal time limits, and consider legal representation for negotiations and court proceedings.

Additional Resources

Ministry of Human Resources and Social Development - primary regulator for employment matters and the friendly settlement process. Labor Courts under the Ministry of Justice - adjudicate labor disputes after the friendly settlement stage. General Organization for Social Insurance - manages social insurance registration and benefits. Human Rights Commission - addresses rights issues including workplace harassment and discrimination. Qiwa platform - national digital services for employment contracts and labor procedures. Wage Protection System and payroll platforms - used to ensure timely salary payments and compliance. Local MHRSD offices in Riyadh - provide in-person assistance for complaints and inquiries.

Next Steps

Review your employment contract and any amendments in Arabic, and gather supporting documents such as pay slips, bank statements, attendance records, emails, and messages. Raise the issue with your employer or HR in writing, keeping copies of all communications. If the issue is not resolved promptly, file a complaint with the Ministry of Human Resources and Social Development to initiate friendly settlement. Consult an employment lawyer in Riyadh who is familiar with national labor law and local procedures in Al Falah to evaluate your case, calculate entitlements such as overtime and end-of-service benefits, and plan your strategy. Observe time limits for claims and do not sign settlement agreements or resignations without understanding legal consequences. If you are an expatriate, check how any employment changes affect your residency and mobility status before taking action. If friendly settlement fails, prepare to file in the Labor Court with organized evidence and witness information.

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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.