The mistaken beliefs foreign employers hold about probation, hours, overtime and leave in Saudi Arabia, and how to check the current rules.
The Saudi Labour Law sets minimum rules on probation, working hours, rest days, overtime and several kinds of leave, with a shorter working day for Muslim employees during Ramadan. Some provisions were changed by amendments that took effect in 2025. This article corrects the most common misconceptions and points to where the current figures are confirmed, rather than quoting numbers that may be out of date.
How to test a claim like this
When someone tells you what the law says about hours or leave, ask which article they mean and whether they have read the version in force after the 2025 amendments. Company practice in the region, or the law of a neighbouring country, is often quoted as though it were the Saudi rule.
Myth 1: Probation can be as long as the employer wants.
Reality: The Labour Law caps probation and sets rules on extending it and on repeating it with the same employer. The cap was revised in the 2025 amendments, so older templates may be wrong.
How to check it yourself: Compare your contract template with the current probation article and the Qiwa model contract.
Myth 2: Senior staff have no limit on working hours.
Reality: The law sets standard daily and weekly limits, with exceptions for some categories such as certain managerial roles and particular sectors. Whether an exception applies depends on the actual role, not the title.
How to check it yourself: Check the exceptions in the law and apply them only where the role genuinely fits.
Myth 3: Overtime can be compensated with a fixed allowance for everyone.
Reality: The law sets a minimum premium for overtime above normal hours. An allowance may be acceptable only if it meets the legal minimum for the hours actually worked.
How to check it yourself: Track actual hours and compare what you pay with the legal overtime formula.
Myth 4: Annual leave is whatever the contract says.
Reality: The law sets minimum annual leave, which increases with length of service. Contracts can give more, never less.
How to check it yourself: Check each employee entitlement against the minimum for their years of service.
Myth 5: There is no special leave beyond annual leave and sick leave.
Reality: The law provides for other kinds of leave, such as leave on marriage, on the birth of a child, on bereavement, maternity leave and leave for Hajj under conditions. Some of these were adjusted in recent amendments.
How to check it yourself: Put all statutory leave types in your HR policy and confirm the current durations.
Myth 6: Ramadan hours are a matter of company goodwill.
Reality: The Labour Law provides reduced working hours for Muslim employees during Ramadan. Many employers apply reduced hours more widely in practice, but the reduction for Muslim staff is a legal rule.
How to check it yourself: Publish Ramadan hours before the month begins, based on the legal rule.
What this changes in your decision
- Review contract templates against the Labour Law as amended in 2025.
- Track actual working hours so overtime can be calculated correctly.
- Write every statutory leave type into your HR policy.
- Plan Ramadan schedules each year as the month moves in the calendar.
Domira works with foreign investors on the property side of entering Saudi Arabia: finding land or premises, due diligence, design, construction and asset management. For licensing, tax and legal steps, work with a licensed adviser; we coordinate with yours so the property decision fits the structure you choose.
Frequently Asked Questions
How long is the probation period in Saudi Arabia?
The Labour Law sets a maximum probation period, with conditions on extension, and the 2025 amendments revised these rules. Check the current article and state the probation period expressly in the contract, because a vague or excessive probation can be challenged. Probation terms also affect how either side can end the contract during that period.
What are normal working hours in Saudi Arabia?
The Labour Law sets standard daily and weekly working hours, with a reduced day for Muslim employees in Ramadan and exceptions for certain roles and sectors. The working week in most private companies runs Sunday to Thursday. Confirm the current limits and exceptions before setting shift patterns or overtime rules.
How many days of annual leave do employees get in Saudi Arabia?
Employees are entitled to a minimum period of paid annual leave, which increases after a set number of years of service. Employers can offer more but not less. Check the current minimums in the Labour Law, and include public holidays such as the Eid holidays, Founding Day and National Day in your calendar separately.
Is sick leave paid in Saudi Arabia?
The Labour Law gives employees sick leave supported by a medical certificate, with pay that steps down in stages as the absence gets longer within a year. The durations and pay fractions are set in the law and should be checked in the current text. Write the rule into your HR policy and require certificates from licensed providers so that absences are handled consistently.
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