5 Things you should know about Employment contract

employee contract

The following is an extract from Saudi Labor Law with regards to Employment contract:

1. The work contract for non-Saudis shall be written and of a specified period.

If the contract does not specify the duration, the duration of the work permit shall be deemed as the duration of the contract. (Article 37)

 2. The contract shall be signed in two sets – one for worker and one for employer. (Article 51)

 3. The contract should include the name of the employer, the name of the worker,  venue, nationality, identification, wage agreed upon, type and location of work, date of employment, duration of the contract if fixed. (Article 52)

 4. If there is going to be probation, then it shall be clearly mentioned in the contract. The probation period shall not be more than 90 days, excluding Eid holidays and sick leaves. Both the employer and worker can terminate the contract at any time without any notice unless the contract specifically gives right to only party to terminate the contract. (Article 53)

 5. A worker may not be assigned duties which are essentially different from the work agreed upon without his written consent. (Article 60)

 Disclaimer: The above article is for information purpose. To get legal advice as per your situation, a legal attorney should be consulted. qSaudi.com shall not incur any liability for the use of above information.

  • Najeeb


    very good providing good information.

    thank you,

    • SaudiXpert

      You are welcome Najeeb.
      Do feel free to share on website if you can to help others.

      • Zeeahan Ahmed

        Asslam O Alekum,

        Dear Sir this information is to much helpfull for us. Really we are very very athankfull to you.

        Sir can u provide me claearly about the labour law. About how to make a contract with our Working company & all over rules regulation & if the are do not fallow on this Aggrement the what we will do..

  • Syed

    I’ve been offered a Sales manager for GCC position in one of the leading Saudi food companies. What pay package sould I expect? please share deatil break up of approx. compensation in Basic salary+Rent+transportation+annual bonus.

    I’ve got the contract, but its for 1 year. is that normal? or Should I push for at least 2 year contract?

    • Ifteqar

      I don’t know about you, I would go for 1 year contract and renew it at the end of year if I like to continue.

      The reason is if my contract is for 2 years and I resign after 1 year then my ESB (End of Service Benefit/Award) will be 1/3 of my salary.
      If my contract is for 1 year and at the end of 1 year if I do not renew my contract, then my ESB will be half my salary.

      This is how I think.

  • Sami


    I have come to Saudi Arabia in Feb 2012 on Azad visa. My sponsor is in Red Category and hasnt issued me an Iqama yet. I have been following up with him for 8 months now but no positive action rather just delays saying next week, next month and so on. I have also been to Indian Embassy and they have just phoned the Sponsor and asked him to fasten up the process. Now my sponsor has given my passport back to me and asking me to get the Iqama done by myself. I have approached like 8-12 Consultants in Riyadh and everyone says the first Iqama has to be created by the sponsor. I am now left in a very bad situation where i am now able revert to the sponsor neither able to get it done by myself.

    I have almost 5-7 Offers from good companies in Riyadh, but not able to join them as i dont carry an Iqama niether my Sponsor gives me Release nor Exit. I am Confused and afraid of my stance. Please advice me to come out of this situation.

    Would be thankful for your response.


  • I am in rastanura,my kafail,from more than 3 years did not givn my insurance to me,i dont know why n also i am having salary problem,i demanded him to go exit befor my iqama expires(28 oct 2012)..but now more than 1 month he is holding my 3 mnths salary and not giving me exit or re-entry.i am
    having no money in my hands.he is not receving call n he is in jubal.now,what to do SIR please help me…

  • SM

    Sir I work in plastic factory form 9 years, but now my employer said to work in steel factory, I said I worked for 9 years in plastic factory if you don’t need me. in plastic factory then send me on final exit , then my employer ask me for 6000 S/R, I just came back from vacation 8 months before and my Iqama remains more 10 months can anybody advice me the right way to get final exit

    • SaudiXpert

      Dear SM,
      Sorry to hear about your situation.
      As per Saudi labor either of the party has the right to terminate the contract with proper notice.
      You can approach the labor office in the your location to discuss the situation if your company is not accepting your resignation in written.
      best of luck

  • Jeffrey

    Good day sir!I just want to ask regarding END OF SERVICE BENEFITS.im working in my previous company for 4 years.what is the calculation of per year indemnity?because our company is giving only 5 days per year for employees who are going for exit below 5 years of service to the company.hopefully sir that you can help me in my queries!thank you!

  • Abdul

    I’m working in LG since 12 years but there is no increment in my salary since last 4 years. And when I got a good job opportunity in other company, I gave my resignation letter but the management of current company is not giving me release. I’m on my own visa not on company’s visa.
    So suggest me what I should do now.?

  • Mohammed

    Dear QSaudi: I came to Saudi Arab on a labour visa which later on i got transfered to a Company, please guide me if i get another job will i get a release from my company or does the company have the right to cancel my residence permit and send me back on exit.

  • Tariq Mahmood

    Dear Sir,

    Aslam O Alaikum,

    My name is Tariq from Pakistan. I am working in a company in Riyadh in Finance department. My profession in Iqama is فنى محاسب عام Technical General Accountant. I have Commerce Degree duly attested fro Saudi Embassy. I want to bring my family. Can you please help me whether i am entitle for Family Visa on my Profession? Please reply me earliest possible. I will be thankful to you.



  • Nayeem


    What is the law for the local transfer candidates in future to take release from the company after or before contract completion.

  • ziad

    salam,dir sir please tell me the solution for my situation what shoul i do,actually 10 months ago I have joined my company,the place was jeddah where i joined,i work there not more than 2 weeks and suddenly my company asked me that I have to go jizaan for one day,and we have to give one trial to take contract,just we have to go and we will be back in 2 days some company,im born in jeddah my whole family is here in jeddah,and when we reached to jizaan we have passed our trial to take contract,and our company got the contract,and now our company has settled down,but the problem is now whatever our company they committed with me and with all employees they didn’t completed their promises,and even didn’t gave us our contract letters we didn’t signed any contracts but we all had transfer our iqama’s to company’s sponsors,we all have to leave the company,because the company has stopped our overtimes no medical and main reason is they shifted us from our own city’s to another,our families are at our back and bla bla…
    Kindly sir give me solution to handle this case thanks

  • Ziad

    So im thinking to knock the labour office doors,what will u suggest me to do..?
    I already got many job offers in jeddah,with more than the pay im getting,even the pay doesnt matters,the reason i’ve told you,now im going to marry in few months,i’ve to be back in my city that’s it..
    We all are suffering badly,kindly tell me..thanks

  • Khalid

    Sir, I am working with the company from last 4 years and 6 months, I have transferred to the company, but my company not given me the signed contract. during the first year of the employment I remind them many time but the company not listened. Now I want to resign, could you please advise me about the EOS benefits that I am entitled. Thanks.

  • Respected Sir.

    I have been working in construction company since 10 months as survey engineer.
    I signed the agreement with company for two year. But now I wana to transfer visa again. Can you give me suggestion about of this matter. Now What I do? If the company do not give me nakal kafala back then I go wana to exit. I am very bored in this company. Yeah before I was working on free visa then I transfer ed to same company.

    Thanks waiting for your positive response.

    Survey engineer



    After Passport renewal, must be go to passport office for transfer all information from old passport to new passport or directly possible through online.

  • Syed

    Assalam Alikum,

    Respected sir,
    I am working in organization and I am living in company bachelor accomdation. now i bring my family and i want housing allowance from company but our management is not approving housing & they didn’t give me any family accomadation. i am staying outside and i am paying rent my self from last one year.
    in this condition what can i do?

  • farhan

    Hello sir,
    i was on free visa till last year as my sponsors status was red i transferd my iqama to a trading company its been two months since i have joined them , they are making do the work which i was not told before , more then 12 hrs work everyday and they dont pay that as overtime also.
    i want release because i have got a better opportunity in a multi national company please suggest me what should i do , i know that they wont give me release because its just 2 months i have not signed any contract with them is it possible in anyway that i can take transfer please give me a valid suggestion.
    Thank you

  • michael

    I just want to know the regular working hours ,,,In our company the regular hours is from 7:30 to 5:00 pm and if we have overtime up to 7:30 in the night with overtime of 2 hrs. and the other shift from 7pm-730 am the overtime is the same ..is this the right computation for this???

  • Muhammad

    Assalam o Alaikum bro,
    I have been working for a foreign investor for almost a year on work visit visa in jeddah. But the salary process has been a worst part with me. out of 12 months i just have received 5 months salary on alternatives months, plus ticket and project fees he has taken from my pocket which he hasn’t returned yet. He is giving lame and silly excuses and i want to take my money back. Please suggest me any solution.

  • mohammed

    Thanks Mmr ali

    I really apratiate your service You are really a right informer at on time

    thanks for your informative & usefull service

  • thanks for excellent information sir i will pray for you.

  • Michale John

    I came to saudi on 2011 on free visa and i paid for visa fees 12500 sar And I worked some company one his paper monthily salry.At last time due to Nitaqat I transfered my visa to another company still am working this company contract signed only two years.My contract going to finsih novemebr and my iqama will finish november.Now I dont want continue this company and I want get release form the company ,but he is not give me release otherwise he will give me exit what I can Do?becuase I dont want get exit I expense too much money gor getting visa on first time.So can you adivse me how will solve the my problems.


  • rizwan

    Sir I have a problem I had give 12000 sr to my kafeel for iqama renewal but he didn’t renew my iqama and gave to me huroob
    I was said to him give me kafala he don’t give me
    Now I have a demand latter from 2companies they said to me just cancel your huroob we will transfer
    Is that any solutions for me

    I will be thak full to you

  • rameez

    Dear Sir,
    Asalam Walekum,

    My self Aamir, I came to KSA last a year as a accounts job post. my employer did gave me another work last 9 months but the job is office work & driving the vehicle but i agreed it & kept quite but now my employer forcing to drive the vehicle only, till today I didn’t drive the vehicle & also I have vision problem in the night. He said do not work in the office but in the contract my designation is mentioned Accountant So I intent to go on final Exit but they will not give exit, my contract was 2 years but i completed 1 year. please give the suggestion What should i have to do?

  • rameez

    Dear Sir,
    Asalam Walekum,

    My self Aamir, I came to KSA last a year as a accounts job post. my employer did gave me another work last 9 months but the job is office work & driving the vehicle but i agreed it & kept quite but now my employer forcing to drive the vehicle only, till today I didn’t drive the vehicle & also I have vision problem in the night. He said do not work in the office but in the contract my designation is mentioned Accountant So I intent to go on final Exit but they will not give exit, my contract was 2 years but i completed 1 year. please give the suggestion What should i have to do? & In this organisation there no accounting job.

  • Muhammad Saeed

    Dear administrator,
    I just want to say that may you live long…You are doing an awesome job…

    Thumbs up…

  • biss

    Sir please I would like to know if I can terminate my contract after probation, I am only one month old here

  • Nabeel

    I don’t know my this question is belongs to this blog or not but i just want to ask you about my problem at that time i am suffering for this.
    my contract was finished 8 months ago i joined my company 06/10/2013 and my contract period was 2 year it was finished in 5/10/2015. there is no any clause in my contract which shows me that it will be automatically renew after every 2 years. this is not my company visa i just buy this visa from agent and my status is transferable iqama. so my company told me that your contract is renewed for next time period automatically its labor law but i didn’t find anything like that in my contract they clearly stated that
    ” this contract will be expire by expiration of its original period unless its was renewed to other periods via written agreement from the first party(Employer), in this case the second party(employee) has to obliged by all the terms and conditions of the contract.”
    this is the clause of my contract so sir i can apply for final exit right with notice period as it is mentioned in my contact (60 days) now i just want to go in july 2016 but my company told me that they will only give me end of service benefits of 65% and my annual leave funds also 65% and ticket my be they will not provide me. please reply me sir.
    Thank you

  • Virgell Uba

    Dear sir.
    God morning i would like to ask about our problem her in our campany because we dont have a contract and also our employe take our passport.
    And now the biggest problem, we had now is he did not give our salary and he change our time to work he release a memo that says frome 6am to 5pm without payment those two hours he applayed.i will sent you the photo of the memo sir that can prob you tbat it is real.
    I hope you give me some times of yours sir. to read my massges and im hopping tbat you can give me some help for this setteuwasyon.