Recent developments in Saudi Arabia
Employment laws in Saudi Arabia have undergone significant amendments aimed at modernising the labour market, enhancing worker protections, and supporting the Kingdom’s Vision 2030 objectives. The reforms introduced in 2025 continue to apply in 2026, and employers should ensure contracts, HR policies, and payroll practices remain aligned.
Written Fixed-Term Contracts for Non-Saudi Nationals (2026)
Employment contracts for non-Saudi nationals must be in writing and fixed-term. If the contract does not specify a duration, it defaults to one year from the employee’s start date. If employment continues beyond the term, the contract renews automatically for an equivalent duration.
Resignation Procedures (2026)
Employees on fixed-term contracts may resign by submitting a written resignation request. If the employer does not respond within 30 days, the resignation becomes effective. Employers may delay acceptance for up to 60 days for valid business reasons, provided they notify the employee with written justification before the initial 30-day period ends.
Notice Periods for Termination (2026)
The revised notice rules for indefinite-term contracts continue to apply:
- Employees must provide at least 30 days’ notice to resign.
- Employers must provide 60 days’ notice to terminate, unless termination is for cause under applicable rules.
Enhanced Leave Entitlements (2026)
Improved leave provisions remain in force in 2026, including:
Maternity leave: 12 weeks at full pay, with six weeks mandatory after childbirth. Leave may start up to four weeks before the expected due date.
- Paternity leave: 3 days of paid leave, to be taken within 7 days of the child’s birth.
- Bereavement leave: 3 days paid leave upon the death of a sibling.
Overtime Compensation Flexibility (2026)
Employers may compensate overtime through paid time off (compensatory leave) instead of cash payment, provided the employee agrees. This allows more flexibility in managing working hours and employee preferences.
