Employment & Labor Law in Saudi Arabia
We act for employers in Saudi Arabia on the full life of the employment relationship — contracts, policies, Saudization, terminations, and disputes — under the Labor Law (Royal Decree M/51 of 1426H, as amended through 2024–2025). The premise of the practice: labor liability is created at drafting time and merely revealed at termination time.
The legal landscape
The Saudi labor market is being rebuilt in the open — Vision 2030’s labor reforms run through digital platforms that leave no room for informality: contracts documented in Qiwa, wages through the Wage Protection System (Mudad), Saudization measured by Nitaqat, social insurance through GOSI. Two numbers anchor most employer exposure: the end-of-service benefit accrues at half a month’s wage per year for the first five years and a full month per year thereafter (pro-rated for part-years), and terminating an indefinite, monthly-paid contract requires at least 60 days’ written notice and lawful grounds. Restrictive covenants — non-compete, confidentiality, employee-IP assignment — are enforceable only when reasonably scoped.
Who we act for
Companies entering the Kingdom and hiring their first Saudi workforce; established employers aligning contracts and policies with the 2024–2025 amendments; HR and legal teams managing Nitaqat exposure; acquirers inheriting a workforce in M&A; and employers in dispute before the Labor Courts.
What we do
- Contracts and policies — employment contracts and work regulations drafted for the amended Labor Law and reconciled in Qiwa, so the documents and the platform tell the same story.
- Saudization strategy — Nitaqat classification planning and quota compliance that keeps your visas flowing as you expand.
- Terminations and settlements — lawful-grounds assessment, the 60-day notice mechanics, and end-of-service calculations that close the file cleanly.
- Restrictive covenants and employee IP — non-competes and IP-assignment clauses scoped to survive scrutiny.
- Workforce in transactions — the employment side of M&A, restructuring, and outsourcing, run with our corporate practice.
- Disputes — defense and settlement strategy before the Labor Courts.
How an engagement runs
We audit the current contracts, policies, and platform records; fix the gaps in priority order; implement through Qiwa and your HR processes; and stay on call for the decisions that create liability — hires, exits, and reorganizations.
Why Temairik for employment
Employment is a standalone specialization at this firm. That matters because labor exposure lives in the details of platforms, thresholds, and documentation, and those details change; we track them so your HR decisions rest on current law.
Hiring, restructuring, or facing a claim? Discuss your matter with our employment team →
Related reading: end-of-service calculation · lawful termination and notice · non-competes · Nitaqat.
Frequently asked questions
How is the end-of-service benefit calculated in Saudi Arabia?
Half a month's wage for each of the first five years of service, and a full month's wage for each year thereafter, pro-rated for part-years.
How much notice is required to terminate an employee?
For an indefinite, monthly-paid contract, at least 60 days' written notice — with lawful grounds; the cause and the process determine liability.
Are non-compete clauses enforceable under Saudi labor law?
Yes, but only when reasonably limited in scope, duration, and geography; over-broad covenants are vulnerable.
What is Nitaqat?
The Saudization classification system measuring an employer's compliance with Saudi-national employment quotas by sector and size.
Which platforms run Saudi employment compliance?
Qiwa (contracts and labor services), Mudad (wage protection), and Nitaqat (Saudization) under the MHRSD, with social insurance through GOSI.
What changed in the 2024–2025 Labor Law amendments?
The amendments substantially updated the Labor Law's rules and documentation requirements. We align contracts and policies with the current text as part of any engagement.
Tell us about your matter.
A few sentences are enough. We respond within one business day. Please leave out confidential details at this stage.