Does a Saudi employment contract have to be in Arabic?

Yes. Article 9 of the Labor Law makes Arabic mandatory for employment contracts, records and the instructions an employer gives its workers. A bilingual contract is permitted, but Article 9 provides that where a foreign language is used alongside Arabic, the Arabic text is the prevailing and authoritative version.

How long can a probation period be in Saudi Arabia?

Article 53 of the Labor Law caps the total probation period at 180 days and requires it to be stated expressly in the contract with its duration specified. Article 54 prevents a second probation with the same employer unless it is for a different profession or type of work, or at least six months have passed since the previous relationship ended, and provides that neither party owes compensation, and no end-of-service award accrues, where the contract is terminated during probation.

When does a fixed-term contract become indefinite?

Under Article 55 of the Labor Law, a fixed-term contract that the parties keep performing converts to an indefinite term once it has been renewed three consecutive times, or once the original term plus the renewal periods reaches four years, whichever comes first. Article 37 separately requires a non-Saudi worker's contract to be written and fixed-term, and treats a contract silent on duration as running for one year from actual commencement.

Employment Contract in Saudi Arabia

The Labor Law was substantially rewritten in 2024, so older English drafting notes are unsafe here. Arabic is mandatory and prevails over any parallel English text. Probation is capped at 180 days, a non-Saudi worker's contract must be written and fixed-term, and wages must reach an account at a bank accredited in the Kingdom.

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Governing law

Private-sector employment is governed by the Labor Law, promulgated by Royal Decree No. M/51 dated 23/8/1426H, which the Ministry of Human Resources and Social Development publishes in consolidated form.

Labor Law, Royal Decree No. M/51 dated 23/8/1426H (Ministry of Human Resources and Social Development)

What a employment contract has to contain in Saudi Arabia

Article 50 defines the employment contract as work performed under the employer's management or supervision for wages. Article 51 requires two written copies, one per party, documented under the relevant regulatory provisions; an unwritten contract is still valid, but only the worker may then prove it.
Saudi Labor Law, Part Five (Labor Relations), Arts. 50 and 51 (Ministry of Human Resources and Social Development)
Article 52 requires the contract to follow the Ministry's standard template, covering the employer's name and place of business, the worker's name, nationality and identity details, address, agreed wage including benefits and allowances, type and location of work, commencement date and the term if fixed.
Saudi Labor Law, Part Five (Labor Relations), Art. 52 (Ministry of Human Resources and Social Development)
Article 53 requires any probation to be stated expressly with its duration and caps the total at 180 days. Article 54 bars a second probation with the same employer unless it is for a different profession or six months have passed since the previous relationship ended.
Saudi Labor Law, Part Five (Labor Relations), Arts. 53 and 54 (Ministry of Human Resources and Social Development)
Article 55 converts a fixed-term contract into an indefinite one where the parties keep performing after three consecutive renewals, or once the original term plus renewals reaches four years, whichever is less.
Saudi Labor Law, Part Five (Labor Relations), Art. 55 (Ministry of Human Resources and Social Development)
Article 37 requires a non-Saudi worker's contract to be written and of a fixed term. If no duration is stated it is deemed to run for one year from actual commencement, renewing for a similar period.
Saudi Labor Law, Part Three (Employment of Non-Saudis), Art. 37 (Ministry of Human Resources and Social Development)
Article 90 requires wages to be paid in the official currency, once a month for monthly-paid workers, and into the workers' accounts through banks accredited in the Kingdom.
Saudi Labor Law, Part Six (Working Conditions and Terms of Employment), Art. 90 (Ministry of Human Resources and Social Development)

Form, notarisation and registration

Article 9 makes Arabic mandatory for employment contracts, records and employer instructions, and makes the Arabic text authoritative where a foreign language is used alongside it.
Saudi Labor Law, Part One (Definitions and General Provisions), Art. 9 (Ministry of Human Resources and Social Development)

What catches drafters out

Article 8 voids any condition contravening the Labor Law, and voids any waiver or settlement of the worker's statutory rights made during the contract unless it is more beneficial to the worker.
Saudi Labor Law, Part One (Definitions and General Provisions), Art. 8 (Ministry of Human Resources and Social Development)
Article 40 puts recruitment costs on the employer, with residence and work permit fees and renewals, late-renewal penalties, profession-change fees, exit and re-entry fees and the worker's return ticket.
Saudi Labor Law, Part Three (Employment of Non-Saudis), Art. 40 (Ministry of Human Resources and Social Development)
Guidance written before 2024 is unreliable: the Cabinet approved amendments modifying 38 articles, removing 7 and adding 2, including new definitions of resignation and outsourcing, effective 180 days after publication.
Cabinet Approves Key Amendments to Labor Law Articles (Ministry of Human Resources and Social Development)