New Saudi Labor Law Amendments (2025/2026): Probation, Overtime, Qiwa Contract Termination & Maternity Leave
Major Overhaul of Saudi Labor Regulations: What Every Expat Must Know
The Kingdom of Saudi Arabia has officially enacted landmark amendments to the Saudi Labor Law (Royal Decree M/51), introduced by the Ministry of Human Resources and Social Development (MHRSD). These reforms represent the most significant update to private sector employment regulations in decades, aligning Saudi workforce policies with global labor standards under Vision 2030.
Whether you are an expatriate executive, an engineer, or a skilled technician, understanding these updated legal provisions is vital for protecting your workplace rights, contract stability, and terminal gratuity entitlements.
1. Probation Period: 90 Days Extendable to 180 Days
Under amended Article 53, the standard probation period remains 90 days. However, the employer and employee may mutually agree in writing to extend probation up to a maximum ceiling of 180 days (6 months). Key rules include:
- The extension agreement must be documented in writing either within the initial contract on the Qiwa Platform or via an electronic addendum during the active 90-day window.
- Either party can terminate the contract during probation without statutory notice or end-of-service compensation, unless otherwise stipulated in the employment agreement.
- Official Eid holidays and documented sick leaves are not counted toward the 180-day probation total.
2. Contract Termination Notice & Resignation Rules
The updated law provides distinct statutory notice timelines based on contract categorization:
| Contract Type | Notice by Employee | Notice by Employer | Legal Baseline |
|---|---|---|---|
| Fixed-Term Contract (Standard Expat) | 30 Days prior to expiry | 30 Days prior to expiry | Contract expires automatically at end date unless renewed via Qiwa. |
| Indefinite Contract (Open-Ended) | 30 Days Notice | 60 Days Notice | Requires valid statutory cause or compensatory damages under Article 77. |
3. Expanded Paid Leaves & Family Welfare Provisions
Saudi Arabia has significantly upgraded employee leave protections:
- Maternity Leave (Article 151): Increased from 10 weeks to 12 fully paid weeks (6 weeks prior to expected delivery and 6 weeks post-delivery), with the option to extend by one unpaid month.
- Paternity Leave: 3 fully paid days upon the birth of a child, claimable within the first week of delivery.
- Bereavement Leave: 5 fully paid days for the death of a spouse, child, or parent, and 3 fully paid days for the death of a sibling.
4. Overtime Calculations & Maximum Working Hours
Under standard Saudi labor rules, regular working hours are capped at 8 hours per day (48 hours per week), reduced to 6 hours per day during the Holy Month of Ramadan for Muslim employees. Any additional hours must be compensated at the rate of Basic Hourly Wage + 50% Overtime Premium.
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