Hire in Saudi Arabia

In Saudi Arabia, part-time and flexible work opportunities are exclusively available to Saudi nationals. General Organization for Social Insurance (GOSI) contributions are applicable to part-time employees in accordance with GOSI regulations.

Key points regarding part-time contracts include:

• Part-time employees are not subject to a probationary period.
• Part-time contracts must be documented and specify the number of working hours.
• Part-time employees are restricted to working a maximum of 95 hours per month for a single employer.
• The employment arrangement for part-time employees must be for a predetermined duration.
• Part-time employees retain the right to decline work at their discretion.

Fixed-term employment contracts, along with any extensions, are limited to a maximum duration of four years. Expatriate workers are exclusively entitled to fixed-term contracts.

In the event of early termination of a fixed-term contract, the terminating party must provide compensation equivalent to the remaining salary for the fixed term.

If both the employer and employee decide to continue the employment relationship beyond the fixed-term contract’s expiration, without explicit renewal agreement, or if the cumulative employment period surpasses four years, the fixed-term contract may be considered an indefinite-term contract.

Employers have the legal authority to perform background checks as part of the hiring process, although it is advisable to do so only when essential and after extending a job offer. Applicants should be informed in advance, with clear notice that the offer is contingent upon a background check.

As part of the hiring process, employers can seek references and mandate medical examinations. Additionally, in certain instances, employers may request a police clearance letter from applicants, addressing their criminal record.

In the probationary period, usually spanning 90 days, the employer or employee can conclude the employment contract without advance notice, unless otherwise specified in the contract.

In cases where the probationary period aligns with Eid al-Fitr or Eid al-Adha, an extension may be considered. Additionally, by mutual agreement, the probation period can be prolonged for an additional 90 days.

In Saudi Arabia, employees typically adhere to a standard working schedule of eight hours per day or 48 hours per week, except during the holy month of Ramadan, when working hours are reduced to six hours per day or 36 hours per week. Fridays are designated as paid rest days. Employees are entitled to a 30-minute break after five hours of work, encompassing time for rest, meals, and prayer. Moreover, employees should not be compelled to remain in the workplace for more than 12 hours in a single day.

However, specific situations may necessitate extended working hours, allowing for up to 10 hours per day or 60 hours per week. These circumstances include annual inventory-taking, preparation for seasonal sales or discounts, budgeting, liquidation, or efforts to prevent or mitigate accidents. It’s important to note that these extended working hours should not surpass 30 days in a year.

When an employee works beyond the regular working hours or during national holidays, they are eligible to receive overtime pay. The overtime pay rate is computed at 150% of the standard wage. Nevertheless, an employee’s annual overtime should not surpass 720 hours.

The retention period for employment data varies based on the type of information. Recruitment data is to be preserved for a duration of six months, while data related to maternity or other leaves should be maintained for three years. Furthermore, records like employees’ personal data, performance appraisals, and employment contracts are required to be kept for six years from the last date of employment.

An employer is prohibited from dismissing an employee without a valid reason, irrespective of whether the contract is fixed-term or indefinite, and the cause for dismissal must be clearly outlined in writing.

For fixed-term contracts, an employee may face dismissal through:

• Non-renewal of the contract at the end date
• Termination as specified in the contract’s terms
• Conversion of the contract to an indefinite term
• Expiration of the work permit (for expatriate employees)

An employer is authorized to dismiss an employee for reasons such as:

• Misconduct
• Unauthorized absence
• Failure to perform essential job duties
• Non-compliance with health and safety rules
• Assaulting the employer
• Disclosure of industrial or trade secrets

Termination of the employment relationship may also occur due to:

• Mutual agreement between the parties with the written consent of the employee
• The employee reaching retirement age
  Force majeure
• In cases of disciplinary dismissal, a specified process must be followed:
• Written notification of the allegation to the employee within 30 days of the employer discovering the offense
• A meeting to question the employee and allow them to defend themselves
• Recording and retention of meeting minutes
• If disciplinary sanctions are imposed, written notification to the employee within 30 days of the employer completing the investigation

The employer is prohibited from terminating employment in situations where:

• The employee is on maternity leave
• The employee is on medical leave for up to 180 days due to pregnancy or childbirth
• The employee is on medical leave and has not yet exhausted their entitlement.

Indefinite-term employment contracts necessitate a minimum notice period of 60 days for termination. Nonetheless, if the employment contract stipulates a more extended notice period, the lengthier duration will take precedence. In cases where employees are not compensated on a monthly basis, the minimum notice period is reduced to 30 days. Conversely, fixed-term contracts mandate a minimum notice period of 30 days for non-renewal.

Upon termination, an employee is eligible for an end-of-service gratuity instead of severance pay. The gratuity amount is determined by considering the employee’s final salary and the duration of their service:

• For the initial five years of service, the gratuity is equivalent to half a month’s wage for each year of service.
• Beyond five years of service, the gratuity increases to one month’s wage for each subsequent year of service.

Non-competition clauses can be included in employment contracts; however, they must adhere to specific criteria to be enforceable. The non-competition clause must be documented and clearly outline:

• 1. The specified duration of the clause, which cannot exceed two years from the conclusion of the employment contract.
• The geographic region to which the clause pertains.
• The nature of work that the employee is prohibited from undertaking.

While there are no specific statutes addressing data protection, the Constitution guarantees the privacy of individuals and their communications. Surveillance is forbidden unless authorized by law. Additionally, under Sharia law, individuals have the right to compensation if their personal information is disclosed without consent, leading to losses.

While there is no legal obligation for employers to furnish employees with payslips, it is customary to follow this practice.

Every employee in Saudi Arabia is entitled to a minimum of 21 days of annual paid leave. However, employees who have served continuously for at least five years with their employer enjoy an extended entitlement of a minimum of 30 days of annual paid leave. Although employees have the option to carry over their annual leave entitlement for up to one year with the employer’s approval, it is advisable to utilize the annual leave in the year it is earned.

Employers bear the responsibility of scheduling annual leave in alignment with the company’s operational needs. Notification to employees about their scheduled leave dates must be provided no less than 30 days in advance. While employees cannot insist on receiving payment instead of their statutory annual leave, employers are obligated to compensate employees for any accrued leave not taken upon the termination of employment.

In the event that an employee falls ill or sustains an injury during annual leave, their entitlement to annual leave is put on hold, and the time away from work is considered sick leave.

Employees have the right to avail a maximum of four months of sick leave per year, accompanied by the submission of a medical certificate to their employer. Should an employee exhaust their sick leave quota, they have the option to request the utilization of any remaining annual leave entitlement for sick leave purposes.

The entitlement to paid sick leave is structured as follows:

• First 30 days: full wages
• Subsequent 60 days: 75% of wages
• Last 30 days: employer payment is not mandatory

Religious Leave:

Muslim employees with a minimum of two years of continuous service are eligible for a paid leave lasting 10 to 15 days, encompassing the Eid al-Adha holiday. However, to qualify for this leave, they must not have undertaken the Hajj pilgrimage in the past. Employers retain the right to limit the number of employees availing Hajj leave within a given year.

Education Leave:

Employees currently enrolled in educational courses are entitled to paid leave for exam attendance and unpaid leave for exam retakes. A leave application must be submitted at least 15 days before the scheduled exam date.

Employees are entitled to compassionate and bereavement leave under the following circumstances:

• Marriage leave: Five days of paid leave
• Death of an immediate relative (child, grandchild, parent, grandparent): Five days of paid leave
• Death of the wife: Three days of paid leave
• Death of the husband (for non-Muslims): 15 days of paid leave
• Death of the husband (Muslims): Four months and 10 days of paid leave
• Death of the husband, if pregnant (Muslim only): Unpaid leave until the birth after four months and 10 days

When requesting the aforementioned leave, employees are required to furnish appropriate documentation supporting the event to their employer.

Maternity Leave:

Expectant mothers who are employees are eligible for a 10-week fully paid maternity leave from their employer. It is required that they refrain from working for six weeks following childbirth and can opt to take up to four weeks before the expected due date, with the flexibility to decide when to commence their leave within these guidelines. Subsequent to the 10 weeks of paid leave, the employee has the option to take an additional month of unpaid leave. In the case of an ill or disabled newborn, the mother is entitled to an extra month of paid maternity leave along with the unpaid month.

• Paternity Leave:
• Three days of paid leave.
• Nursing Care Leave:

Employees have the right to take one hour of paid leave each day to nurse their child until the child reaches two years old. This hour is considered part of the employee’s working time, and they are entitled to receive payment for it.

The following public holidays are to be observed by employers in Saudi Arabia:

• Eid al-Fitr — a four-day period (dates may vary)
• Eid al-Adha — a four-day period (dates may vary)
• September 23 (National Day)

If National Day coincides with Eid al-Fitr or Eid al-Adha, employees do not receive an extra holiday. In the case of public holidays aligning with an employee’s regular day off or during their annual leave, an additional day off will be granted.