Saudi Arabia Working Hours and Labor Regulations

Understanding Maximum Working Hours and Overtime Regulations

The Ministry of Human Resources and Social Development (HRSD) oversees labor regulations in Saudi Arabia, ensuring compliance with employment laws. These regulations cover working hours, compensation, leave entitlements, and other employee rights.

Standard Working Hours Framework

Saudi Arabia's standard workweek runs from Sunday to Thursday, with Friday and Saturday designated as the weekend. Employees typically work 48 hours per week, with 8-hour daily shifts. However, specific sectors including retail, hospitality, security, and related industries may extend daily hours to 9 hours. During Ramadan, working hours are reduced to 6 hours daily, totaling 36 hours weekly.

Employees are entitled to a 30-minute break after 5 hours of work for meals and prayers. Employers cannot require employees to remain at the workplace for more than 12 hours in any single day. Exceptions to standard hours apply in specific circumstances:

Annual inventory, budgeting, or seasonal sales preparation (maximum 30 days annually)
Emergency situations to prevent accidents or material loss
Periods of exceptionally high work volume
Special occasions and seasonal events as determined by ministerial decision

In these exceptional cases, daily work cannot exceed 10 hours, with a weekly maximum of 60 hours.

Overtime Compensation Structure

Overtime work receives compensation at 150% of the regular hourly rate. For example, an employee earning 100 SAR per hour would receive 150 SAR for overtime hours. Management and supervisory positions are generally exempt from overtime entitlements.

Employment Contract Requirements

All employment relationships require written contracts registered through the Qiwa platform. Contracts must be in Arabic, though translations may accompany the original document for foreign workers. Employers must issue contracts within 90 days of employment commencement.

Two primary contract types exist:

Unlimited-term contracts: Open-ended agreements without fixed expiration
Fixed-term contracts: Specific duration agreements with predetermined end dates

Contract essentials include employer/employee details, compensation, job responsibilities, work location, and termination conditions. Companies may supplement standard contracts with additional terms covering probation periods, confidentiality, and special benefits.

Saudization Policy Implications

The Saudi government's nationalization strategy requires private sector companies to meet specific Saudization quotas across industries. Current requirements mandate over 50% Saudi employment in sectors including finance, education, and telecommunications, with overall private sector targets reaching 21.5%.

Companies are categorized as platinum, green, yellow, or red based on compliance levels, affecting visa processing and tax obligations. Senior management positions must maintain 75% Saudi representation, with ongoing initiatives to develop local talent for leadership roles.

Probation Period Regulations

Standard probation periods last 90 days, extendable to 180 days with employee consent. During probation, either party may terminate employment without notice or end-of-service benefits. Employees cannot undergo multiple probation periods for the same position unless six months have passed since previous employment.

Probationary employees receive full salary and benefits while demonstrating job suitability. Employers must apply probation periods reasonably and in good faith.

Compliance Considerations for International Employers

Companies expanding into Saudi Arabia must navigate complex regulatory requirements. SailGlobal provides comprehensive compliance consulting to help businesses establish legally sound employment practices. Proper documentation, timely contract registration, and adherence to Saudization policies are critical for sustainable operations.

Recent case studies demonstrate how multinational companies have successfully adapted their HR policies to meet Saudi regulations while maintaining operational efficiency. One technology firm implemented staggered work schedules during Ramadan, while a manufacturing company developed specialized training programs to meet Saudization targets without compromising quality standards.

Saudi Arabia Labor Law Guide: Working Hours, Contracts & Saudization