Saudi Labour Law: 8 Checks for Indian Workers Abroad

By Sumit Manwal, Founder, Hospitality Vacancy | Updated: 6 November 2026

In short: Saudi labour law generally protects private-sector expatriate employees, but exclusions and sector rules matter. Check your written contract, actual hours, rest breaks, leave, probation and final-settlement terms before accepting work. Current HRSD guidance should take priority over old summaries, and evidence such as payslips and rosters is essential if a dispute develops.

Saudi labour law illustration showing a worker reviewing employment papers — AI-generated editorial illustration; not an official document or actual person.

If you are an Indian worker heading to Riyadh, Jeddah, Dammam or any other Saudi city, Saudi employment rules is the rulebook that decides your hours, leave, notice and final settlement. Many disputes between Gulf workers and employers start with a contract that was never read properly, so this guide walks through the basics in the order you will meet them: contract, working hours, overtime, leave, probation, who pays which costs, and what you receive when the job ends.

The figures below come from the Saudi Ministry of Human Resources and Social Development (HRSD) awareness guide for workers and employers, first edition 2025, and from the Embassy of India in Riyadh. Rules are updated from time to time, so use this article to prepare questions, then check your own contract and the official sources.

This is general information, not legal advice. The Labour Law covers most private-sector workers but not everyone; domestic workers, for example, fall under separate rules. For a dispute, contact the HRSD, a licensed lawyer or the Embassy of India.

Who is covered by Saudi labour law

The Labour Law governs the relationship between employers and workers in the Kingdom's private sector, including expatriates employed by companies and establishments. The Embassy of India notes that domestic service workers such as housemaids and drivers, and some other groups, are not covered by the general Labour Law. Company-employed hotel, retail, construction and office staff are generally within its scope, subject to the law’s exclusions and any sector-specific provisions. A domestic driver is not in the same position merely because both jobs involve driving.

Your Saudi employment contract: what the law expects

Hotel workers taking rostered breaks while discussing Saudi labour law — AI-generated editorial illustration; not an official document or actual person.

The HRSD guide says the contract must be in writing, documented on the ministry-approved Qiwa platform, and based on the unified employment contract form. Each side must keep a copy. For a non-Saudi worker, the contract must be written and for a fixed term. If it does not state the duration, it is treated as one year from the day work starts, and if both sides keep working after it expires, it renews for a similar period.

Before you sign, check that the contract states:

Employer name and workplace, and your name, nationality and job title.
Basic wage, plus housing and transport allowances, or a statement that the employer provides them.
Start date, contract duration and probation period (if any).
Health insurance for you and your family as required by Saudi insurance law, and registration with social insurance (GOSI).
Working hours, leave, and how disputes are settled.

The guide also stresses that wages must be paid by bank transfer and that employers must follow the Wage Protection Program. Compare the documented Qiwa contract, when available in your onboarding process, with the offer before accepting its terms. If access is not yet available, request a written copy and clarify when documentation will be completed. Our guide to the Saudi work visa process shows where the contract fits in the visa steps.

Working hours and rest breaks under Saudi labour law

The standard limit is 8 hours a day or 48 hours a week. During Ramadan, hours for Muslim workers are cut to 6 hours a day or 36 hours a week. Other key points from the HRSD guide:

A weekly rest day is compulsory and cannot be exchanged for cash. It is Friday unless another day is agreed and the labour office is told.
You must get at least a 30-minute break after every five consecutive hours of work. Rest, prayer and meal breaks are not counted as working time.
The employer must display the work schedule, rest periods and shift timings in a visible place.

Hotel and hospital staff often work shifts, so ask how your roster is set and where the schedule is displayed before you accept the offer.

Overtime pay: the Ministry's own example

Overtime is paid at the hourly wage plus 50% of the basic hourly wage. The HRSD guide shows how this works. In its example, a worker has a basic wage of SAR 4,000 and an actual wage (basic plus allowances and bonuses) of SAR 6,000. The hourly wage is 6,000 ÷ 30 ÷ 8 = SAR 25. The basic hourly wage is 4,000 ÷ 30 ÷ 8 = SAR 16.67, and half of that is SAR 8.33. So each overtime hour is worth about SAR 33.33, and three overtime hours come to about SAR 100.

The guide adds that time off can replace overtime pay only if the worker agrees, at not less than 1.5 hours of leave for each overtime hour. Work on public holidays counts as overtime. Keep your own record of extra hours, because disputes are easier to settle with dates and times.

Leave entitlements at a glance

Type of leave	What the HRSD guidance says
Annual leave	At least 21 days a year; 30 days after 5 consecutive years with the same employer; cannot be swapped for cash while you work; unused days are paid if you leave
Public holidays	Eid al-Fitr and Eid al-Adha (4 days each), Founding Day (22 February) and National Day (23 September); work on these days is overtime
Sick leave	First 30 days on full pay, next 60 days on three-quarters pay, next 30 days unpaid, in one year
Maternity leave	12 weeks on full pay, including 6 weeks after delivery
Marriage leave	5 paid days
Paternity leave	3 days when a child is born
Hajj leave	Once, after two years of service

The employer chooses the leave date to suit the business but must tell you at least 30 days before. Leave can be postponed by agreement, and the employer can delay it by up to 90 days if the work requires. Do not accept a request to "sell" your annual leave while you are employed; the guide says this is not allowed.

Probation period rules

Probation must be written in the contract with a clear duration. Article 53 of the Labour Law, as quoted by the HRSD, caps probation at 180 days in total, and the contract can split it into consecutive periods if it says so at signing. Older summaries describe 90 days with a written extension to 180 days, which is how many contracts are still drafted. Either side may end the contract during probation without compensation, and no end-of-service award is paid if it ends in probation.

An employer cannot place you on probation more than once, except for a different profession or type of work, or where at least six months have passed since the previous employment relationship with the same employer ended, and both situations need a written agreement. Eid holidays, National Day, Founding Day and sick leave do not count towards the probation period.

Who pays for visa, iqama and flights

According to the HRSD guide, the employer is responsible for recruitment fees, residence and work permit fees and their renewal, profession change fees, exit and return fees, transfer fees when the employer takes over your services, late penalties caused by the employer, and your return ticket home when the contract ends. Under the guide, you pay for your own return only if you are unfit for work or you end the contract without a valid reason.

Two more protections matter. The employer may not keep your passport or residence permit under any circumstances, and you may not be employed in a profession other than the one on your work permit. If your manager holds your passport, the guide says you can complain through the ministry's beneficiary platform. If you are on an ECR passport, read about emigration clearance for Gulf jobs, and see how Pravasi Bharatiya Bima Yojana insurance helps.

Ending the contract and the end-of-service award

Employee organising records for a Saudi labour law rights review — AI-generated editorial illustration; not an official document or actual person.

The end-of-service award is based on your last wage, and part-years are counted in proportion. Subject to statutory exceptions, such as qualifying Article 80 dismissal or probation termination, the ordinary award formula is half a month's wage for each of the first five years and a full month's wage for each year after that. If you resign, you receive one-third of the award for service of two to five years, two-thirds for more than five and under ten years, and the full award from ten years. The full award is due if you leave because of force majeure, and for a woman who resigns within six months of marriage or three months of childbirth.

Here is an illustration with made-up numbers. Suppose your last wage is SAR 6,000 and your contract ends after seven years. The first five years give 0.5 × 6,000 × 5 = SAR 15,000, and the next two years give 6,000 × 2 = SAR 12,000, a total of SAR 27,000. If you had resigned at seven years, you would receive two-thirds, or SAR 18,000. Use the ministry's end-of-service calculator for your real figure. For a UAE comparison, see our worked examples in UAE gratuity calculation.

On leaving, the employer must give you a service certificate free of charge showing your joining date, end date, profession and last wage, and return any documents you deposited. Termination compensation is a separate issue from the end-of-service award. Contractual compensation terms, the type of contract and the legal reason for termination matter; do not assume a universal two-month payment for every departure.

What to do if your employer breaks the rules

Document everything: contract, payslips, bank statements, messages and attendance records.
Raise it in writing using the internal grievance route your employer must provide.
Use the ministry's amicable settlement service (the Wady platform named in the guide).
File a case with the labour court through the Najiz platform if no agreement is reached.
Tell the Embassy of India. The Embassy of India in Riyadh runs a labour complaint service and publishes guidance for Indian workers.

The Ministry’s awareness guide on the rights and duties of employers and workers is free to read and worth saving on your phone before you fly.

Health insurance and social insurance

The guide lists health coverage for the worker and family under the insurance law, and registration with the General Organization for Social Insurance (GOSI), among the worker's basic rights. If you want to compare how another Gulf country handles this, read our explainer on UAE health insurance and what employers must provide.

FAQ

How many hours can I work under Saudi labour law?

The general limit is 8 actual hours a day or 48 hours a week. Sector and permitted working-time exceptions need checking. For Muslim workers the limit falls to 6 hours a day or 36 hours a week in Ramadan. Extra hours must be paid as overtime.

How many days of annual leave do I get in Saudi Arabia?

At least 21 days a year, rising to 30 days after five consecutive years with the same employer. You cannot exchange leave for cash while you are still employed, but unused days are paid when you leave.

How long can a probation period be?

The HRSD guide says no more than 180 days in total, and it must be written in the contract. Either side may end the contract during probation without compensation.

Who pays for my iqama and visa fees?

The employer is responsible for the listed statutory charges. The HRSD guide lists recruitment fees, residence and work permit fees and renewals, and exit and return fees among the employer's responsibilities.

Can my employer keep my passport?

No. The guide says the employer must not retain a worker’s passport or residence permit. If documents are withheld, use the official HRSD complaint route and seek embassy assistance rather than paying an intermediary.

How is the end-of-service award calculated?

Half a month's wage for each of the first five years and one month's wage for each later year, based on your last wage. Resignation reduces the award if you have served fewer than ten years.

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