Not legal advice
Content summarises labour law as published by each GCC ministry, current as of May 2026. Not a substitute for legal advice. Employment law is jurisdiction-specific and subject to change. For contracts, disputes, visa issues, or any decision with legal consequences, consult a qualified labour lawyer licensed in your jurisdiction.
Not legal advice
This guide summarizes Saudi Arabia employment law for informational use only. It is not a substitute for advice from a qualified labour lawyer. Employment law is complex and jurisdiction-specific. For contracts, disputes, visas, or decisions with legal consequences, consult a licensed labour lawyer in your jurisdiction.
Quick summary
Notice periods are 60 days when the employer ends an indefinite contract and 30 days when the employee resigns. Fixed-term contracts run to their end date. Article 80 lists the limited grounds for summary dismissal. Wrongful termination (Article 77) triggers 15 days' wage per year of service, with a minimum of two months' wage.
Notice, indefinite-term contracts
Article 75 of the Labour Law sets the notice period for indefinite contracts:
- Employer terminates: 60 days' written notice.
- Employee resigns: 30 days' written notice.
The notice can be extended by mutual written agreement but not reduced below the statutory minimum. Notice-in-lieu (paying the notice as a lump sum) is permitted.
Fixed-term contracts
A fixed-term contract runs to its agreed end date. Early termination by the employer without one of the Article 80 grounds is a breach and entitles the employee to compensation for the remaining contract term, capped at two months' wage per year of service (Article 77). Early resignation by the employee can entitle the employer to a similar measure of compensation.
Probation
Probation is up to 90 days, extendable to 180 days by written agreement. During probation either party can terminate without notice and without compensation.
Summary dismissal, Article 80
Article 80 lists the grounds on which an employer can dismiss without notice or mukafat. The list is closed and includes:
- Assault on the employer, manager, or colleagues at work
- Failure to perform essential duties despite written warning
- Conviction of an offence of dishonour or trust
- Disclosure of trade secrets
- Absent without cause for more than 30 days in a year or 15 consecutive days
- Fraudulent acts to obtain the job (e.g. forged qualifications)
- Conduct during a probationary disciplinary procedure
Wrongful-termination compensation
Article 77 provides the wrongful-termination remedy. For an indefinite contract, the compensation is 15 days' wage per year of service (with a minimum of two months' wage). For a fixed-term contract, it's the wage for the remainder of the term. Either measure is in addition to mukafat, unpaid notice, and accrued leave.
Worked example
Noura is on a five-year fixed-term contract paying SAR 30,000/month total. After three years, her employer terminates her without an Article 80 ground. The remaining two years of the contract = SAR 720,000. The Article 77 cap (two months' wage per year of service) = 6 × SAR 30,000 = SAR 180,000. She also gets her accrued mukafat (three years × 15 days, full because dismissal not resignation) and any unused leave. Total entitlement: roughly SAR 240,000 in addition to mukafat.
Frequently asked questions
What's the standard probation period?
Up to 90 days under Article 53, extendable to 180 days by written agreement before probation starts. During probation either party can terminate without notice and without compensation. An employee cannot be put on probation more than once with the same employer in the same role.
Can my employer terminate me for poor performance?
Not summarily. Poor performance falls under Article 75 (with notice and full entitlements) rather than Article 80 (summary). The employer must follow a documented process, written warning, opportunity to improve, before a performance-based termination will hold up at the Labour Court.
Is my termination 'wrongful' if my employer just cites 'restructuring'?
Restructuring is not an Article 80 ground for summary dismissal. It is a valid reason to end an indefinite contract with 60 days' notice, paying all entitlements (mukafat, leave, etc.). The dismissal would only be 'wrongful' if the proper notice and entitlements weren't paid or if a fixed-term contract was ended early without compensation.
What's the time limit to file a labour complaint?
One year from the date the right arose, under Article 222. File the initial complaint via the Friendly Settlement mechanism on the Qiwa platform; if unresolved within 21 days, the case can be escalated to the Labour Court.
When to consult a labour lawyer
Consult a Saudi employment lawyer before signing a termination settlement, when your employer is citing Article 80 grounds you disagree with, or when a fixed-term contract is being ended early without the Article 77 compensation. The Friendly Settlement step on Qiwa is mandatory before going to court, a lawyer can structure your case before the first filing.