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About Employment Rights Law in Al Falah, Saudi Arabia

Employment in Al Falah, a district in Riyadh, is governed by Saudi national labor laws and regulations. The core framework is the Labor Law administered by the Ministry of Human Resources and Social Development. It sets out rules on contracts, wages, working hours, leave, termination, end-of-service benefits, health and safety, and dispute resolution. Modern systems such as the Wage Protection System and the Qiwa platform support electronic contracts and compliance. Expatriate employment is also shaped by the Labor Reform Initiative, Saudization policies, and social insurance rules managed by the General Organization for Social Insurance. If you work or run a business in Al Falah, your rights and obligations flow from these national rules, applied through local labor offices and the Riyadh labor courts.

Why You May Need a Lawyer

You may need legal help if you face termination or redundancy and want to confirm whether the notice, reason, and final settlement are lawful. A lawyer is useful if wages, overtime, or allowances are unpaid, or if there are unlawful deductions. Employees often seek advice on harassment, discrimination, or retaliation complaints, and on how to report and pursue them safely. Expatriate workers may need help with job transfers, exit and reentry procedures, and contract disputes. Employers and employees both benefit from advice on drafting or reviewing contracts, non-compete clauses, confidentiality obligations, and policy handbooks. Legal support is also valuable for workplace injury claims, end-of-service benefits calculations, Saudization compliance, and audits or investigations by labor authorities. If a dispute escalates to the friendly settlement stage or the labor courts in Riyadh, counsel can prepare filings, evidence, witness statements, and settlement strategies.

Local Laws Overview

Employment contracts must be in writing for expatriate workers and are strongly recommended for all. Arabic prevails if there is a conflict with another language version. Contracts can be fixed term or indefinite. Probation may be agreed for up to 90 days and can be extended up to 180 days with written consent, holidays and sick leave are not counted in the probation period. During probation either party may terminate if the contract allows, without end-of-service benefits.

Working hours are generally 8 per day and 48 per week. During Ramadan, working hours for Muslim employees are reduced, commonly to 6 per day. Every worker is entitled to at least one weekly rest day of 24 hours, usually Friday. Overtime is generally paid at 150 percent of the basic hourly wage for extra hours and for work on official rest days and public holidays, subject to statutory rules and any more favorable contract terms.

Wages must be paid on time through the Wage Protection System. Employers must not withhold passports or personal documents. Deductions are tightly regulated and total deductions should not exceed half of the wage except in limited lawful cases. Final settlements must be paid within one week of the contract ending, or within two weeks if the employee resigns.

Leave entitlements include annual leave of at least 21 days, increasing to 30 days after 5 years of service with the employer. Sick leave can extend up to four months in a year, with a schedule of full pay, partial pay, and unpaid periods under the law. Maternity leave is 10 weeks, typically with pay that depends on length of service, often half pay after one year and full pay after three years, with related benefits handled as the law provides. Paternity leave, marriage leave, bereavement leave, and Hajj leave are available in defined circumstances. Public holidays commonly include Eid al Fitr, Eid al Adha, Saudi National Day, and Founding Day, with pay rules set by regulation and policy.

Termination rules depend on contract type and reason. Indefinite contracts usually require written notice, commonly 60 days for monthly paid employees and 30 days for others, unless serious misconduct applies. Fixed term contracts end at the agreed expiry unless renewed. End-of-service benefits generally equal half a month of wage for each of the first five years and one month of wage for each additional year, calculated on the last wage and prorated for partial years, with special rules if the employee resigns. Employers must provide an end-of-service certificate upon request.

Non-compete clauses must be in writing, limited in time, place, and scope, and protect legitimate business interests. The restriction period is usually capped, commonly up to two years in practice. Equal opportunity rules prohibit discrimination in hiring and during employment. Workplace harassment is criminalized and employers must prevent and address it. Employers have a duty to provide a safe workplace, report work injuries, and carry social insurance coverage for work injury and retirement as applicable.

Expatriate mobility has improved under the Labor Reform Initiative, which allows many private sector employees to change jobs and obtain exit and reentry or final exit services through official platforms subject to eligibility and notice conditions. Some categories are excluded under separate domestic worker rules. Saudization programs set workforce localization targets that can affect recruitment and HR planning.

Disputes typically go through the friendly settlement process at labor offices, followed by litigation before the labor courts if no settlement occurs. Electronic filing and case management are common in Riyadh. Remedies can include unpaid wages, overtime, leave pay, end-of-service benefits, reinstatement in limited scenarios, or compensation for unlawful termination.

Frequently Asked Questions

Do I have to receive a written employment contract in Al Falah

Yes. Expatriate employees must have written contracts. All employees should insist on a written Arabic contract that states job title, wage components, allowances, work location, hours, probation, leave, termination, and dispute forum. If there is an Arabic and a foreign language version, the Arabic text prevails in case of conflict.

How is overtime calculated in Saudi Arabia

Overtime is generally paid at 150 percent of the basic hourly wage for hours beyond the statutory daily or weekly limits and for work on weekly rest days and public holidays, unless the contract gives a more favorable rate. Certain roles may be excluded, but exclusions are interpreted narrowly.

Can my employer reduce my salary or allowances unilaterally

Material changes to core terms such as basic salary, job role, or work location require your consent. Employers cannot impose salary cuts or remove contractual allowances without agreement, except where a lawful and clearly stated contractual or policy basis exists. Any reduction must still comply with wage protection and minimum Saudization counting thresholds where relevant.

What end-of-service benefits am I entitled to

As a general rule you receive half a month of wage for each of the first five years of service and one month of wage for each additional year, prorated for partial years and calculated on the last wage. If you resign, a reduced scale can apply for service under 10 years, with full entitlement usually due after 10 years. Specific circumstances can vary, so calculate carefully and keep payroll records.

What are the notice periods for termination

For indefinite contracts, notice must be in writing and is typically at least 60 days for monthly paid employees and 30 days for others, unless serious misconduct justifies termination without notice. Fixed term contracts end on expiry unless renewed. Your contract may set longer notice, which is allowed if it is not less than the legal minimum.

Is there a minimum wage in the private sector

There is no universal statutory minimum wage that applies to all private sector employees. For Saudization calculation purposes, there is a threshold salary for a Saudi employee to count as one full worker, which is a policy benchmark rather than a general minimum wage. Sectoral or contractual minimums may apply in practice.

Can my employer keep my passport or original certificates

No. Retaining an employee passport or personal documents without consent is prohibited. You should keep your documents, and employers should only request copies. Unlawful retention can be reported to labor authorities.

How does maternity leave work

Female employees are entitled to 10 weeks of maternity leave, typically split as at least 4 weeks before the expected delivery and the remainder after. Pay depends on length of service, commonly half pay after one year and full pay after three years, with related deductions and benefits handled under the law. Employers must provide a safe and non-discriminatory work environment during pregnancy and after return.

Can I change jobs or leave the country without employer approval

Under the Labor Reform Initiative many private sector expatriates can transfer jobs and obtain exit and reentry or final exit services through official platforms if contractual and notice conditions are met and there are no active restrictions. Some categories, such as domestic workers, follow separate rules. Check eligibility and comply with notice and settlement obligations before moving.

What should I do if I am not paid on time

Document what is owed using your contract, payslips, and bank statements. Raise a written complaint to your employer and HR. If unpaid, file a complaint through the labor dispute channels for friendly settlement. The Wage Protection System records can support your case. If settlement fails, the matter can proceed to the labor court for an enforceable judgment, including wages, overtime, and penalties where applicable.

Additional Resources

Ministry of Human Resources and Social Development, including labor education materials, complaint services, and friendly settlement offices in Riyadh. Qiwa platform for employment contracts, job transfer services, and compliance tools. General Organization for Social Insurance for work injury claims, subscriptions, and benefits. Riyadh Labor Court under the Ministry of Justice for litigation after friendly settlement. Human Rights Commission for issues related to discrimination and worker rights. Public Prosecution and the competent police units for workplace harassment or criminal violations. Riyadh Chamber of Commerce for employer guidance and local business services. The unified labor call center can provide initial guidance and direct you to the correct service channel.

Next Steps

Gather your documents, including your employment contract, offer letter, iqama, payroll records, leave approvals, and any communications with your employer. Create a timeline of key events and amounts owed.

Review your core rights, focusing on notice periods, end-of-service benefits, leave, overtime, and whether any deductions or policy changes were lawful. Identify any urgent issues such as visa status or imminent travel and address them promptly through the official platforms.

Raise your concern in writing with your employer, request a meeting, and propose a practical resolution with clear figures and dates. Keep a record of all exchanges.

If the issue is not resolved, open a case through the friendly settlement channel at the labor office that serves Al Falah and greater Riyadh. Attend sessions with your evidence and be prepared to negotiate a settlement.

Consult an employment lawyer in Riyadh for case evaluation, calculation of claims, drafting, and representation. A lawyer can help you navigate Qiwa and court procedures, prepare witnesses, and avoid mistakes that delay payment or weaken your claim.

If settlement fails, proceed to the labor court. Follow filing deadlines and court instructions, attend hearings, and comply with any expert appointments for wage or benefits calculations. After judgment, use enforcement channels to collect what is awarded.

For employers, conduct an internal compliance review, correct any Wage Protection System gaps, update contracts and policies, train managers on harassment and equal opportunity, and align with Saudization and health and safety obligations to reduce legal risk in Al Falah.

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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.