01
Labor Law and the 2025 Amendments
Labor relations are governed by Labor Law, its Executive Regulations and HRSD decisions. The amendments, which came into force on February 19, 2025, updated the rules for contracts, testing, dismissal, vacations, training and recruitment of personnel. For special industries, profile rules are additionally checked.
02
Saudisation - pre-hire calculation
Nitaqat and special localization decisions depend on the activity, size of the establishment, profession, region and staff structure. There is no general percentage for all companies: the vacancy is checked according to the current classification before sending an offer to the candidate.
- Activity
- Actual type of activity and establishment code
- Profession
- Is the role reserved for KSA citizens?
- Band
- Current employer status in Nitaqat
- Salary
- Is the employee taken into account in the localization indicator?
- Special rule
- Is there an industry percentage or phased schedule?
03
Foreign worker: unified migration and labor chain
Before starting work, profession, qualifications, employment contract, work authorization, visa and iqama are agreed upon. Qiwa job title, permit and actual responsibilities should not be inconsistent; Transfers between employers and changes in profession are processed through the applicable procedure.
- 01Role check
Profession, localization and employer license.
- 02Offer and contract
Remuneration, benefits, place and duration.
- 03Permit and residence
Work authorization, visa, medical and iqama.
- 04Onboarding
Qiwa, GOSI, payroll, insurance and policies.
04
Agreement and Qiwa
- Employer
- Correct legal entity and establishment
- Role
- Profession and measurable responsibilities
- Pay
- Basic salary, allowances, bonus and benefits
- Place
- Office, site, mobility and remote arrangement
- Term
- Definite or indefinite period and renewal
- Protection
- Confidentiality, IP, data, non-compete and policies
Arabic and English texts, Qiwa electronic record and internal offer letter must be consistent. If there is a discrepancy, the applicable official document will be assessed in advance.
05
Probationary period
The probation clause is specified in the contract and is administered according to the current law. The amendments clarified periods that do not count towards the test, including Eid holidays and sick leave. The company records goals, feedback and decisions before the deadline expires.
06
Working hours, rest and vacation
The schedule is checked against Labor Law, Ramadan rules, industry and role. Regular hours, overtime, weekly rest, public holidays, annual and sick leave are separately reflected in the accounting. A working woman has the right to 12 weeks of paid maternity leave under the updated Article 151.
07
Salary, payroll and GOSI
Remuneration is paid through an established salary contour and is confirmed by payroll records. The employer registers applicable employees in GOSI, correctly separates basic salary and allowances, administers health insurance, vacation, deductions and end-of-service file.
08
Domestic politicians turn the contract into a process
- Work rules
- Working hours, attendance and approvals
- Conduct
- Anti-harassment, dignity and complaints
- Discipline
- Investigation, evidence and proportional response
- Information
- Confidentiality, acceptable use and cybersecurity
- Expenses
- Travel, benefits, procurement and reimbursement
- Training
- Qualification Plan and Confirmation of Passage
09
Termination: grounds, procedure, calculation
Resignation, expiry, mutual termination, redundancy and dismissal have different grounds and consequences. Before notification, the contract, reason, evidence, notice, unused vacation, end-of-service award, return of property, immigration steps and the final entry in the systems are checked.
First, a timeline and evidence file are generated. Violation of procedure can turn a managed exit into a labor dispute.
10
Complaint and labor dispute
The company stores signed contracts, Qiwa records, payroll, attendance, warnings, investigations and calculations. The claims stage, reconciliation and consideration by the competent labor authority are planned taking into account mandatory deadlines and Arabic-language evidence.
11
Before the first working day
- 01
Check activity, Nitaqat band and profession.
- 02
Agree on contract, Qiwa record and immigration file.
- 03
Set up payroll, GOSI, insurance and leave records.
- 04
Issue policies, access and data notices.
- 05
Create a probation and termination calendar.
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