Saudi Arabia

Hiring in Saudi Arabia

In Saudi Arabia, building a strong relationship before entering into negotiations is crucial since Saudis value interpersonal connections. Business discussions usually start after a few introductory meetings. It is important to pay attention to couched expressions that might indicate a "no" since Saudis prefer not to give negative answers. It is also common for decisions to be overturned. While it is acceptable to ask about the counterpart's family, inquiring directly about their spouse is not appropriate.

Recently, Saudi Arabia has implemented the Saudization policy to increase employment opportunities for Saudi citizens in the private sector. This policy has made it challenging to sponsor new employment permits for foreign workers. Expats can still be sponsored, but at a high cost. It is best to hire Saudi nationals who already have Iqamas or resident work permits. Our team can transfer these individuals to our local partner and assign them to work for our clients while handling all issues related to employment contracts, work visa sponsorship, and compliance with local HR regulations.

Employment Contracts in KSA

To ensure compliance with local labor laws in Saudi Arabia, it is crucial to have a well-documented employment contract that specifies the employee's pay, benefits, and termination obligations. It is also important to mention the remuneration amount in Saudi Arabian Riyals in both the offer letter and employment contract. Our Employer of Record service in Saudi Arabia can help clients in creating employment contracts that comply with local laws and regulations.

Furthermore, Saudi nationals automatically have their contract changed to an unlimited contract after completing three consecutive fixed-term contracts or after working continuously for four years. This ensures job security for employees and provides them with greater benefits and protections. By utilizing our services, our clients can rest assured that they are following local laws and regulations while providing the best possible employment terms for their workers.

Working Hours in KSA

Employees in Saudi Arabia typically work 40 to 48 hours per week, with the standard workday consisting of 8 hours for 6 days a week. During Ramadan, Muslim employees can work 6 hours per day. Employees are entitled to overtime pay or time and a half for any hours worked beyond 40 hours per week. There is no limit to the amount of overtime an employee can work. The weekend in Saudi Arabia is on Fridays and Saturdays.

Holidays in KSA

The Kingdom of Saudi Arabia observes two significant holidays during the Islamic year, namely Eid Al Adha and Eid Al Fitr. The specific dates for these national holidays may vary, as the government announces them on an annual basis.

Vacation Days in KSA

To comply with local labor laws in Saudi Arabia, employers must provide their employees with at least 21 days of vacation time. However, after six years of continuous employment, the legal minimum vacation time increases to 30 days. It's typical for companies to offer 30 days of vacation time from the first year of employment, and senior management usually receives 40 or more days. Employees can carry over their unused vacation time to the following year, but reducing carryover is also acceptable.

Sick Leave in KSA

To be eligible for sick leave in Saudi Arabia, an employee must present a medical certificate. Sick leave can last up to four months, during which the employee will receive 100% of their wage during the first month. From days 31 to 91, they will receive 75% of their income, and for the remaining days, they will not receive any pay. It is important to note that the sick leave period is prorated for employees who have not completed a year of service. Employers are advised to establish clear sick leave policies and ensure compliance with local labor laws.

Parental Leave in KSA

In Saudi Arabia, female employees are entitled to 10 weeks of paid maternity leave, which can be taken up to a month before delivery and up to six weeks after. If the woman has been working for over a year, she is entitled to half of her salary during her maternity leave. However, if she has been with the company for more than three years, she is entitled to full pay. In addition, employers must cover medical expenses related to pregnancy and childbirth.

Health Insurance in KSA

In Saudi Arabia, local citizens have access to free medical and hospital treatment through the public healthcare system. However, employers are required to provide private health insurance to all employees and their families, including expatriates. Our Employer of Record service in Saudi Arabia includes comprehensive health insurance coverage, ensuring that all employees and their families are protected.

Termination in the UAE

In Saudi Arabia, companies commonly have probationary periods lasting no longer than 90 days, which can be extended by another 90 days if agreed upon by both the employer and employee. Although trial periods are not required by law.

Employees under an unlimited contract are entitled to a 60-day notice period, while other contract holders have a 30-day notice period. In the event of insufficient notice, the parties may agree to pay compensation. During the notice period, employees are permitted to use eight hours of labor time each week to search for other jobs. Definite contracts usually do not have a notice period as there is seldom a good reason to terminate them early.

Furthermore, employees are eligible for an "end-of-service award" at the end of their contract. This award equals half a month's pay for each of the first five years of service and a full month's pay for each subsequent year, adjusted for any partial year of service.

Taxes in the UAE

Employers in Saudi Arabia are obligated to pay for GOSI, which covers housing expenses and some commissions on behalf of their employees. This payment is deducted from the employees' basic salaries, with the cost estimated to be around 10% for the employer. Both Saudi and non-Saudi workers must have their employers contribute 2% towards occupational risks insurance.