Article 1

This Law shall be called the Labor Law.

Article 2

The provisions of this Law shall apply to:

a. Any contract of work under which any person undertakes to work for the
account of an employer and under his control and directions in consideration
of a wage.
b. Apprenticeship contracts.
c. Workers of the governments, local authorities, Charitable establishments and
public organizations.

Article 3

Provisions of this Law shall not apply to:

a. Workers in family enterprises that does not include, but only members of the
employer’s family.
b. Persons who works in pastures or agriculture, except:

1. Persons working in agricultural establishment which process

their own products
2. Persons who permanently engaged in operation or repair of
mechanical equips. Required for agriculture.
3. House Servants and others workers regarded as such

Margin Annotation:
Provision of this law shall apply to B mentioned above as per the decisions of the
council of ministers No. 209 dated 6/2/1398H

Article 4

In the absence of special provision to the contrary, the provisions of chapter 8 and
articles 164,165,166 shall not apply to the following:

a. Workmen who work in non–mechanical establishments. which employ

normally less than 5 workers, where the work does not cause any of the
occupational disease
b. Seamen or Skippers employed on ships of less 500 ton, who are subject to the
provisions of part 2 of the commercial regulations (maritime trade) sanctioned
by Royal Order no. 32 dated 15 Muharram 1350H

Article 5
The minister of Labor may consider all or any of the following establishments to be
governed by the provisions and chapters mentioned in Article 4 of this Law:

a. Any establishment employing Juveniles.

b. Any establishment employing women.

Article 6

It is illegal to violate the provisions of this Law or to prejudice any other rights
acquired by the workman by virtue of any other regulations, or concessions
agreements, labor contract, or any other agreement, or by virtue of any arbitration
award or Royal Order or in accordance with what has been habitually granted by the
employer to his workmen in a given area or areas. Whereby the workman waives any
right established in his favor by virtue of the provisions shall be null and void even if
such stipulation was made to the effective date hereof.

Article 7

Following terms and expressions shall have the meaning set below:

1. “Adult”: Person who has completed 18 years

2. “Adolescent”: Person who is more than 15 years and less than 18 years
3. Juvenile: person who is under 15 years
4. “Commission”: Commission is formed according to the provisions of Chapter
eleven of this law for settlement of work disputes, chairman of the
commission is the official who heads it.
5. “Continuous service”: uninterrupted service with the same employer or his
legal successor from the commencement of service , service shall be
considered as continuous in the following cases:
a. Regular vacations or leaves authorized by employer.
b. Where, the worker absent himself from work for legal
excuse for periods totaling to 30 days a year
c. Where, the worker stops working for reasons imputable
to or emanating from the employer with which the
worker had nothing to do.
6. “Wage”: All that is given to the worker in consideration of his work under
contract of work, whether written or unwritten regardless the nature of the
wage whether it is in cash or in kind, whether it is paid monthly, weekly, daily
or in piecework basis, on the basis of number of worked hours or the amount
of production, regardless such a payment consist of commissions or tips paid
in accepted practice and where there are rules controlling accurate
calculations.
In general, wages shall include all increments and allowances of all kind
including the high cost of living allowance and the family allowance.
7. A “Workman” Any person working for the account of employer and under
his management and supervision if it is not a direct suppression in
consideration of a wage.
8 An “Employer”: Any natural or juristic person employing a workman or
 more in consideration of a wage
9. “An Apprentice” Any person who joins the service as an employer in
purpose to learn a trade or craft.

Article 8

In case that employer entrusts to a natural or juristic person one of his principal works
or a part of it the latter shall give the worker all the rights and privileges granted by
the employer to his own workers and both shall be responsible for that.

Article 9

The employer and the worker shall be know of the contents of this Law in purpose to
be aware of their rights and obligations. And in order to regulate the work a set of
these rules shall be displayed at a conspicuous place in every establishment
employing more than twenty workers and it shall show the following:

a. Classification of workers in accordance to their positional categories.

b. Working hours, official holidays, off days (rest), pay days.
c. Work shifts
d. Regulations and rules of attendance, absence tardiness and access control for
checking – in and checking out, inspection.
e. Vacations and eligibility.
f. Any other details necessitated by the nature of the work.

A set of disciplinary rules shall also be displayed showing acts, offensive, acts of
insubordination and workers obligations, and the corresponding cash penalties or
disciplinary actions, in accordance with the disciplinary rules issued by Minister of
Labor. The said rules and any amendments shall not become effective except after
have been approved by the Ministry of Labor.

Article 10

The employer shall keep at place of work records showing full name of the worker,
nationality, occupation, date of birth, place of residence, family status, date of hire,
wages & wage supplements Changes in status , penalties imposed on him, and relative
investigation reports regular work hours and overtime, vacations and benefits in cash
or in kind, date of termination and reasons, compensations received, and any other
necessary information relate to the implementations of this Law , and in particular ,
the information relate to employment of juveniles and women and occupational
injuries and diseases.

Article 11

In case of several partners or managers in any establishment, a resident manager shall

be appointed to be responsible for any violation of the rules of this Law. Labor office
shall be informed of the name of the said appointed manager.
Article 12

In the event complaint against an officials who are charged with the enforcement of
this Law in connection with the discharge of their official duties, investigation shall
be made by a commission of three, one of whom shall be selected by the minister of
labor, while the second shall be from the personnel bureau and the third shall be an
administrative investigator designated by the Grievance board or by any juridical
authority replacing it. If the investigation reveals that the complaint was false or
vexatious, the complainant shall be penalized with a fine of not less than five hundred
riyals and not more than twenty thousand riyals , and if it is found to be valid the
commission shall raise a report to the minister of labor so that he may issue his
instructions for the necessary action.

Article 13

Complaints shall not be heard in respect of violations of the rules of this law after the
lapse of twelve months from date of occurrence of such violations and case or claim
relating to the rights shall be heard after the lapse of twelve month from the date of
the termination of the work contract. Claims or rights that relate to previous
regulations shall not be heard after the lapse of one full year from the effective date of
this Law.

Article 14

Actions arising under the rules of this law shall be heard expeditiously, the losing
party shall be ordered to pay the other party all or part of the expenses incurred by the
latter.

Article 15

The amounts entitled to the worker or dependants shall be considered first-class

privileges debts, and for recovery, the worker or his heirs shall have a priority right
over the employer’s property. In case of bankruptcy or liquidation of the employer’s
establishment, such amounts shall be recorded as privilege debts and the worker shall
be paid immediately a portion equivalent to one month’s salary before payment of any
other costs, including judicial, bankruptcy or liquidation expenses.

Article 16

Arabic Language to be used in all decisions, records, registers, files , statements and
others provided in this law, or in any decision or order in application of it, as well as
instructions or circulars issued by the employer to his workers. In case employer
along with the Arabic Language uses foreign language, the Arabic text shall prevail at
all times.

Article 17

Times limits and periods provided in this rules shall be computed on the Hijriah
Calendar, unless another calendar is agreed upon.
Article 18

The employer shall submit the following information to labor office before
commencing his work:

a. Name and location of the establishment and address.

b. Nature of work to be carried out.
c. Type of energy to be used.
d. Number of workers.
e. Name of responsible manager.
f. Any other necessary information.
g. Information that relates to existing establishments at the time this law is put
into effect shall be submitted within three months from that time.

Article 19

Labor office shall be notified within seven days from date of replacement of the
responsible manager and the assumption of the new manager, and in case no one has
been appointed, the person who actually performs the manager’s duties shall be
regarded as a responsible manager.

Article 20

A month shall be reckoned as thirty days unless otherwise provided.

Article 21

Physicians selected by consultation between the minister of labor and minister of

health shall issue necessary certificates.

Article 22

It is not allowed for any worker or employer to abuse any provision, decision and
rules of this law. It is illegal, too, to bring pressure to bear on the freedom of the other
with the object of realizing any interest or supporting points of view which they adopt
which is inconsistent with the freedom of work and the jurisdiction of the authorities
concerned with settlement of disputes. Penalties provided in this law shall be applied
to any offender.

Article 23

Competent inspector designated by decision of minister of labor shall undertake labor

inspection and they shall have the jurisdictions and functions provided in this law.

Article 24

Functions of labor inspection:

 a. Monitoring of proper execution of the rules of the labor law, and in particular
those relate to work conditions, protection safety procedures for workers,
wages and the employment of juvenile.
b. Make available to workers information and technical guidance that enable
them to adopt the best means towards enforcement of the rules.
c. Notifying concerned authorities of the deficiency that provisions fails to
remedy and suggesting alternatives.
d. Recording of violations of the provisions of the labor regulations.

Article 25

Labor Inspector shall take the oath before the minister of labor to perform their duties
honestly and faithfully and not to disclose industrial secrets that the may know by
reason of their offices even when they cease connecting with such offices. Ministry of
labor shall provide the inspectors with ID card.

Article 26

Employers shall extend to the inspectors required facilities that facilitate performance
of their duties and shall present to them all required information and to respond when
requested to appear before of inspectors or to send a delegate to appear on their behalf
if required.

Article 27

Inspectors shall have the right to:

a. To access to any establishment that is subject to the rules of this law ant time
during day or night and without prior notice conditioned that such access shall
be made during working hours
b. Perform any necessary investigation to ensure proper enforcement of the law
and they may in particular.

1. Investigate the employer or the worker separately or in presence

of witnesses about matters relating to the enforcement of the
rules.
2. Examine the records and documents and obtain copies or
extracts.
3. Take samples of used materials subject to inspection when
believed such material may have a harmful effect on the
workers health or safety.
4. To ensure that the required notices are posted.

Article 28

Appropriate rules shall be prepared by ministry of labor in regard of inspection

operation provided in preceding article and shall be approved by decision of the
Council of Ministers.

Article 29

The inspector shall notify the employer of his presence unless he sees the inspection
matter calls for a different course of action.

Article 30

The inspector has the right to instruct employers to make modifications in the
operating rules to the plant equipment used in their establishments within the period
he prescribes, that is to insure proper applications of rules that relate to worker’s
health and safety. And he has the right to require the immediate adoption of the
necessary measures if an imminent danger is threading workers health .

Article 31

Complaints received by inspectors shall be treated as strict confidential and shall not
disclose to employer the existence of such complaints.

Article 32

If inspector finds contravention of law, he shall prepare a report in duplicate setting

forth the event and raise it to the director of labor office for necessary action.

Article 33

Directors and inspector may call upon police authorities to provide necessary
assistance when required. A competent physician shall accompany the inspector when
the duty of the later relates the heath aspects.

Article 34

Head of inspectors shall prepare a monthly report on the inspection activities, number
and nature of violations and he shall also prepare an annual report showing results of
inspection and offering his suggestions. Copies of both reports to be sent to ministry
of labor.

Article 35

The deputy minister of labor shall prepare an annual report on inspection in the
kingdom covering all matters relate to the executions of the rules of the labor law and
the following in particular:

1. Statement covering inspection rules.

2. Statement of inspection officials.
3. Statistical data on establishment subject to inspection and number of workers.
4. Statistical data on number of visits executed by inspectors.
 5. Statistical data on number of committed violations and penalties to which
offenders were sentenced.
6. Statistical data on labor injuries.
7. Statistical data on occupational diseases.

Article 36

The ministry shall prepare warning notices ,reports, inspection records notices and
rules for safekeeping and forms to be distributed in various areas.

Article 37

In addition to the general requirements for employment of employees, the labor

inspection must satisfy the following requirements:

a. They shall be impartial.

b. Not to have any direct or indirect interest in the establishment inspected by
them.
c. They shall pass a special professional examination following a training period
of not less than three months.

Article 38

The ministry organizes the special training courses of the inspectors and controllers,
special attention shall be given to the following:

a. Principals of organizing inspection and communications with employers and

workers.
b. Principal of auditing and accounting.
c. Principal of counseling employers in regard of rules application and benefits of
application.
d. Fundamental Principals in industrial technology and means of protection
against labor injuries and occupational diseases.
e. Fundamental Principals in productivity and its relation to securing favorable
conditions for the perfomance of work.

FIRST : EMPLOYMENT OFFICES

Article 39

The ministry shall set up employment offices in locations suitable for employers and
workers as well. These offices shall be under the supervision of the ministry that shall
offer free service in purpose to assist workers in finding appropriate jobs and
employer to find suitable workers.

Such offices shall collect and analyze necessary information on the position and
development of Labor market and make it available to the concerned bodies who deal
in economic and social affairs. The employment offices shall carry following duties:

a. To record the names of job applicants, show their vocational qualifications,

practical experiences and desires.
b. To obtain information on vacancies from employers.
c. To offer advice and assistance to the job applicants in regard of the vocational
training required for the obtainment a job.
d. To facilitate the transfer of workers from position to another or from one area
to another.
e. Others which may be determined by the Deputy Minister of Labor.

Article 40

It is not allowed for any person to act as an employment agent or as supplier of

workers unless permitted by the deputy minister of labor, provided that he possess an
annual license which shall be renewable at the discretion of the competent authority
that controls the said activity. The license shall be granted only when there is an
employment belonging to an approved organization capable to act as an intermediary
in supplying the required workers.

Article 41

It is not allowed for employment agents or the worker suppliers to ask or accept from
workers any kind of rewards in consideration of granting them contracts of work, or to
collect from them any related expenses unless such expenses are decided and
approved by the competent authorities Workers supplied by an agent or by workers
supplier shall be regarded as employed upon the engagement by employer and shall
have the rights and privileges of the original workers of the establishment. The
relationship between the supplier and the worker shall end and shall become a direct
one with the employer.

Article 42

The employer shall inform labor office via a registered mail of the current vacancies
and the newly created jobs. And shall give details of the job in regard of conditions,
wage, nature of work requirements for employment within 10 days from the date on
which the post has become vacant or created.

Article 43

The employer shall submit to the appropriate labor office every year during the month
of Du-al Hijah the following information:

1. Statement showing numbers and names of his workers, their positions, wages,
nationalities and number of work permits.
2. Statement of vacant post or the newly created, rate of pay, jobs filled and
reasons for not filling others.
 3. Report on nature of work, conditions and circumstances, expected increase or
decrease in number of vacancies.

Article 44

Without prejudice to the conditions laid down in this concession and other agreements
and orders regarding training, education and scholarships, every employer employing
more than one hundred workers, shall train in technical jobs a number of his Saudi
national not less than 5% of his total workers as per the training program set my
ministry of labor.
The minister of labor shall decide the rules and conditions to be observed during the
training and shall determine the maximum and minimum periods and also the
theoretical and practical methods, methods of testing and granting of certificates.

Article 45

Saudi workers shall not be less than 75% of the total number of the company/
establishment workers and their wages shall not be less than 5% of the total wages of
workers.

The ministry may reduce this ratio in absence of technical skills or educational
qualifications.

Article 46

The minister of labor shall require employers in certain industries or in certain areas
not to appoint worker except through employment offices according to terms and
conditions determined by him.

Article 47

Rules and procedures governing the conduct of business at the employment offices
shall be determined by decision of minister of labor prescribing the forms of records,
notices and other documents handled by such offices and also job classification
scheduled according to international job classification which serve as basis for
organization of employment operation.

SECOND : EMPLOYMENT OF FOREIGNERS

Article 48

Work is a right of Saudi national, it may not be exercised by others except after
fulfillment of the conditions provided for in this chapter. The Saudi workers are equal
in their rights to work in all areas of the country without discrimination.

Article 49

No foreigner shall be brought into the country to work nor permitted to work with
company or private establishment except after the approval of the minister of labor
and after securing a work permit which shall not be granted unless following
conditions are fulfilled:-

1. Worker shall have entered the country in a legal manner and shall have
satisfied the condition of the residence rules and conditions.
2. To possess vocational skills and educational qualifications of which the
country is in need, provided that the nationals possessing such qualifications
are either lacking or insufficient.
3. That he shall be under contract with a Saudi employer or non Saudi authorized
under the regulations for the investment of foreign Capitals , or under contract
with and guaranteed by a concession company.
The term ”work” shall mean any industrial , commercial , agricultural financial
or other work and also any service including domestic service.

Article 50

As per rules, conditions and periods determined by minister of labor, the employer
shall vocationally train his Saudi workers to replace foreign workers, that by
improving their technical standards. Employer shall keep register on which he shall
record the names of the Saudi workers who have replaced non-Saudis.

THIRD : VOCATIONAL REHABILITATION OF DISABLED

Article 51

A disabled person is that person whose capacity to perform his work has diminished
as a result of physical or mental infirmity.

Article 52

“Vocational rehabilitation” shall mean the services provided to a disabled in purpose

to enable his to regain his capacity and perform his normal work or any other work
that suits his condition.

Article 53

Minister of labor in agreement with other ministries and concerned establishments

shall set instructions provided for vocational institutes. Disabled persons shall be
given certificates approved by minister of labor confirming their rehabilitation.

Article 54

Any employer employing more than 50 workers and where the nature of his business
enable him to employ rehabilitated persons shall employee some of them to the extend
of 2% of total of his worker. Employer shall inform the labor office of jobs occupied
by disabled workers who have been vocationally rehabilitated.
Article 55

If the injury of the worker result in disablement that doesn’t prevent him performing a
job rather than his previous job, the employer shall assign to him a suitable work at the
salary fixed for that job within 1% of the total workforce, and without prejudice his
reserved right for the injury compensation.

FORTH : CONTRAST OF APPRENTICESHIP

Article 56

Contract of apprenticeship shall mean the contract upon which the employer agrees to
employ a young worker in purpose to teach him a certain trade of craft within a
specific period during which the worker shall be under the supervision of the
employer.

Article 57

The employer who employs apprentices shall be at least 21 year old, of good
reputation and he or who is in charge of training shall be in possess of adequate
qualifications and experiences required for the trade or craft subject to apprenticing.
And the establishment shall satisfy technical conditions that include trainers and other
facilities required for teaching the trade or the craft.

Article 58

Contract of apprenticeship shall be made in writing and period and stages shall be
determined and wages as well. Wages of upper stages shall not be less than the lower
ones that given to similar work and determination shall not be on piecework or
product basis.

Article 59

Contract of apprenticeship shall be written in three copies at least, one for each part:
the employer, the worker and the third copy shall be submitted to the appropriate labor
office within a week’s time from date of commencement of the contract. The
registration date at labor office shall be considered the official date for the
commencement of the contract. The apprentice or his legal testamentary guardian
where he is under 16 years of age shall sign the contract. Such contract shall be
exempted from registration fees or stamp duty.

Article 60

The minister of labor shall determine the jobs of apprentice, periods for each trade or
craft and also the theoretical and practical program and conditions of examination.
Head of council of ministers shall approve the certificates given at completion of the
period.
Article 61

The minister of labor shall has the right in all cases to appoint an expert or more in the
trade or the craft to be organized, and he shall avail himself of his/their reports.

Article 62

The apprentice shall submit to a medical examination before commencing his program
in purpose to determine his ability to perform the trade he wishes to be trained on, and
if the trade or craft required special medical fitness, the report shall state whether such
physical or psychological conditions are fulfilled.

Article 63

The employer shall guide and monitor the conduct of the apprentice as a godfather and
advice him to avoid serious errors, and shall not ask the apprentice to accomplish
operations not relating to his practicing the trade or the craft.

Article 64

The employer shall instruct gradually in principals of the trade or craft stipulated in
the contract and shall at the end of the contract deliver to him a document
acknowledging completion of the apprenticeship.

Article 65

Apprentice shall be guided through the instruction of his master in full respect and
politeness and to cooperate and assist his master within the limits of his capacity and
ability.

Article 66

The employer may terminate the contract when he feels that the apprentice does not
have the desire or ability to complete usefully the apprenticeship. The apprentice shall
have the same right in terminating the contract, provided that the part who wishes to
terminate the contract shall notify the other part at least one week prior to the date of
cessation of work.

Article 67

In the establishments, industries and trades to be specified by the decision of the

minister of labor, the minister mat oblige them to accept:

a. A number and specified portion of apprentices according to conditions and

periods determined in article (60) & (61)
b. A number and specified portion of students or graduates of the industrial and
vocational institutes to be trained and to obtain practical experiences according
to conditions periods wages determined in an agreement between the ministry
 and the establishment.

Article 68

Fiscal charge called “ Vocational training tax” may be –by decision of council of
ministers- imposed on industrial and vocational establishment whose vocational field
and number of workers determined by recommendation of the minister of labor. The
proceeds of the proposed vocational tax shall be used in financing the training
institutes and to establish new ones when necessary.

Article 69

The employer shall or shall not keep the apprentice in his service at the end of the
apprenticeship period, the apprentice shall have the right to stay or not unless provided
contrary in the contract.

Article 70

The work contract is a contract signed between the employer and the worker where
the worker agrees to work under the direction of the employer in consideration of a
wage. The contract contains terms and conditions of work agreed upon for specified or
unspecified period or for accomplishment of a certain specified work.

Article 71

The employer shall not be obliged to re-employ the worker under probation period for
more than three months in respect of those who are employed at a monthly rate or for
not more than one month for others. The same employer shall not appoint the same
worker under probation for more than once and to be stated clearly in the contract that
the work is under probationary period and period shall be clearly determined.

Article 72

The work contract of specified period shall terminated upon the expiry of its period, if
both parties shall continue to enforce it, then it shall be considered renewed for an
specified period.

Article 73

If the contract is for unspecified period, either parties shall terminate it for a valid
reason after notifying the other party in writing thirty days prior to termination date
for the workers on monthly pay and fifteen days for other workers.

If the party who cancel the contract fails to observe the provided period he shall be
obliged to pay to the period notice or the remainder therefore.

The last wage of the worker shall be taken as basis for the assessment of the
indemnity that is for workers who are paid on a monthly weekly or daily rate As for
workers whose payment is fixed on piecework basis, the compensation shall be
calculated on the basis of the average pay for the actual workdays during the last three
months.

Article 74

If the contract of work is canceled for a non valid reason, the party who is prejudiced
by such cancellation shall be entitled to an indemnity to be assessed by the concerned
committee, where material and moral harms shall be taken into account, and also the
period of service, age of the worker, wages, family burdens he shoulders, the degree
of the arbitrariness of the discharge decision, the extent of the decision affects on the
worker’s reputation and any other conditions in accordance with rules of equity and
current generally accepted practice.

Article 75

The worker who is discharged for a non-valid reason shall submit an application to
director of labor office requesting stay of execution within fifteen days from date on
which he received the discharge note. The director of labor office shall immediately
proceed on taking the necessary action to settle the dispute in a amicably manner.

If settlement not reached, he shall refer the application to the competent commission
along with a memorandum of five copies in which he summarizes the dispute and
presents the argument of both parties, and the comments and recommendations of
labor office for settlement of the dispute. The chairman of the commission shall,
within three days from referral of the application, fix a hearing for the examination of
stay of execution within two weeks form date of such referral.

Employer and the worker shall be given a notice to attend the hearing. The
commission shall decide on the application within two weeks from date of the first
hearing. Its decision on this respect shall be final. A hearing for examination of the
basic issue shall be fixed within the following week. If the commission orders stay of
execution, the employer shall be ordered to pay the worker a sum equivalent to his pay
from the date of his discharge.

The employer may return the worker to his job within one week of the issuance of the
decision and pay him his wages, and the dispute shall be considered settled. Such
settlement shall be reported to the chairman of the commission. If settlement is not
reached during the said period, the commission shall decide on the basic issue within a
period not exceeding fifteen days from date of decision issuance for stay of execution.
If commission finds that the worker discharge was not for a valid reason, it may order
his reinstatement with payment of his entitlements and any other compensation.

The proof that discharge was based on valid reasons shall lie with the employer. The
decision in this respect shall be considered as instance. The discharge shall be
considered for no valid reasons if it followed the claim of the worker for his
legitimated rights and when proved that there are no other reasons for the discharge. In
this case the employer shall be ordered to reinstate the worker to his job and pay him
his wages from the date of discharge up to the date on which he returned to work and
his service shall be considered continuous.

The discharge shall be considered with no valid reasons when it was caused by the
refusal of the worker to comply with the instructions of his transfer from his original
place of work where that transfer was not for valid reasons necessitated by work
requirements, or if such transfer may cause serious prejudice to the worker.

In this case the employer shall be ordered to return the worker to his job in the original
place of work and to pay him his wages from date of discharge, and his service shall
be considered as continuous. The worker’s right in applying for stay of execution shall
laps if he fails to submit his application within the prescribed fifteen days, without
depriving him the right to claim for his other legal rights during the period of the one
year specified article (13) of this law.

Article 76

If the work contract is concluded by a person who act on behalf of the original
employer or works for his account, both, such a person or the worker shall be held
responsible (jointly) for the fulfillment of obligations prescribed hereunder.

Article 77

The contract of work must be in writing in two copies in Arabic language, one to be
retained by each party. The contract shall be considered existent even if it is not in
writing, and the worker may prove his right by all means, Any of the two parties may
request a written contract at any time. As for governmental or general establishment
officials, the employment letter issued to them by such circle shall be considered as a
contract of work.

Article 78

The employer may not transfer the worker to another place rather than his original
place of work when that necessitate the change of the worker’s residence, or if it cause
serious prejudice to the worker and where there is no valid reasons dictated by nature
of work.

Article 79

The worker who is paid in a monthly pay rate may not be reclassified to receive his
pay in a daily pay rate, weekly pat rate, hourly or piecework rate unless he agrees to
that in writing, provided that doe’s prejudice his rights acquired before. The worker
may not be classified in a lower grade. Worker may not be asked to perform a job that
is essentially different from the job agreed upon in the contract unless he agree in
writing provided that should be dictated by nature of work and shall be on temporary
basis.

Article 80

The employer may not pay foreign workers wages and awards exceeds the wages paid
to his Saudis workers when their skills and technical abilities and educational
qualifications are equal except in the limits necessitated by the need to attract foreign
workers.

Article 81

If the worker causes damages or destruction of materials or machinery or products of

the employer due to the worker’s fault or his disobedience to employer instructions,
the employer shall withhold from his wages an amount required for the repair or
restating things, provided that the deducted amount shall not exceed the total pay of
five days a month. The employer may claim for a higher for recovery if the employer
has other properties.

Article 82

The work contract shall not end upon the employer’s death ,it shall end upon the death
of the worker or his disability to perform his job due to illness resulting in his absence
for not less than consecutive ninety days or an aggregated period not exceeding one
hundred twenty days, and such disability shall be established by a medical report. The
employer must refrain from canceling the contract during the period o illness, and in
case of termination, the employer shall pay the worker the full termination award
according to the provisions of this law, without prejudicing the rules of injuries
compensation.

Article 83

The employer may not cancel the contract of work without termination award,
advance notice, or indemnity, except in the following cases provided that the worker
shall be given the chance to submit his objection against the cancellation:

1. If the worker – during work- caused assault to the employer or to his

supervisor.
2. If the worker fails to fulfill his essential obligations or if he fails to disobey the
instructions or to observe the safety instructions in spite of the written warning
delivered to him.
3. If it is proved that the worker has adopted a bad conduct or committed an act
affecting honesty or honor.
4. If the worker –in intent to cause losses to employer- committed an act or
negligence provided that the employer shall inform the concerned circles on
the event within twenty four hours from time on which the event come to his
knowledge.
5. If it is proved that the worker has committed counterfeit to obtain the job.
6. If the worker is appointed under probation.
7. If the worker absents himself - with no valid reason- for more than twenty days
a year or for ten consecutive days, provided that a written notice shall be
delivered to him after ten days in the first case and after five days in the second
case.
8. If it is proved that the worker has left- without the permission of the concerned
physician the hospital or any place prepared for his medical treatment
 without prejudice his rights in receiving compensations of wok injuries
according to the rules of GOSI.
9. If it is proved that the worker has disclosed the industrial or commercial
secrets of his work.

Article 84

The worker may- in the following cases- leave the place of work before the end of the
contract without a prior notice and without prejudice his right in receiving termination
award or the indemnity for the losses come upon when the cancellation is made by the
employer:

1. If the employer fails to fulfill his essential obligations towards the worker.
2. If he is called upon by the employer to perform a work that is essentially
different from the nature of the work described in the contract, or if the
employer transferred him from the original place of work to another where
such transfer necessitate the change of his residence and causes serious
prejudice to the worker and where is no valid reason indicated by the nature of
the work.
3. If the employer or whoever is acting on behalf of him committed an assault or
an immoral act against the worker or on of his family members.
4. If there is a serious danger threats the worker’s safety or the health, provided
that the employer failed to remove such danger.
5. If the employer or his representative has mislead the worker at time of
concluding the contract.
6. If the employer has compiled the worker through unfair treatment toward him
or to appear as terminating the contract.

Article 85

The employer shall be bear the costs of returning the worker to the place where the
contract was concluded or the place from where he was brought during the period
determined by labor office at the end of the work or at the termination of the contract
for one of the reasons provided in Articles (82,83,84) conditioned that the worker shall
not have engaged in another job at his prior place of work or shall have not ceased to
work for a valid reason, or shall have expressed in writing before the labor office his
desire not to return to the place where the contract was signed or to the place from
where he was brought.

If the employer shall fail to fulfill this obligation, the concerned circles- upon the
request of labor office- shall repatriate the worker immediately and recover costs from
employer. If the discharge is under Article (83) , employer shall be exempted from
such obligations if he requested so.

Article 86

If the service of the worker shall come to an end the employer shall return to him all
his deposits, and worker shall be entitled to obtain and free of charge a work
certificate contains salary and period of service and any other facilities he was
receiving. Grounds shall be stated where the certificate contains what may prejudice
the worker’s reputation or if it diminish the worker’s chances to obtain a job.

Article 87

If the contract of specified period shall come to an end, or if cancelled by the

employer in the unspecified contracts, the employer shall pay to the worker a service
award calculated as follows:

• Half month pay for each year for the service of the first five consecutive years.
• Full month pay for each of the following years

The last monthly pay shall be the basis of calculations, and the worker shall be entitled
to the award of fraction of the year according to portion he spent in service, and shall
be , also, entitled to the award provided at the beginning of this article , in the
following cases:

1. If he is called to military service.

2. If he resigns for marriage or for childbirth.
3. If he left the work as a result of force majeure beyond his control.

In exemption to the provision of Article (6) of this law, agreement may be made not to
include commissions and sales percentage ( which naturally increases and decreases)
in the calculation of the service award.

Article 88

In the contracts of unspecified periods, the worker shall be entitled to receive one third
of the service award provided in the previous article when he resigns after a period of
service not less than two consecutive years and not more than five years, two thirds if
the period is more than five consecutive years and less than ten years, and to a full
award if he resigns after ten years in service provided that he shall –in all cases –
notify and in writing his employer about his intention to resign thirty days before he
leaves the work prior.

Article 89

All obligations shall be discharged, in spite of, dissolution, liquidation, shutdown,

bankruptcy, merge, subdivision of the establishment or its conveyance by inheritance,
legacy donation, sale , assignment or any other dispositions. With exception of the
liquidation, bankruptcy and authorized final shutdown, the contract shall be
considered in force in all above-mentioned cases.

Article 90

The original employer and the new one, shall be jointly responsible for the discharge
of all obligation arising from the work contract before the transfer of ownership and
obligation arising after that shall be assumed on the new employer.

OBLIGATIONS OF EMPLOYERS

Article 91

In additions to the rules and provisions of this law, the employer shall:

1. Treat his worker in the due respect and refrain any word or deed that may
affect their dignity or religion.
2. Facilitate all tasks related to labor inspection teams and control application of
rules and to provide the concerned authorities with the required information.
3. Grant his workers the adequate time to exercise their rights and regulate such
exercises in a way that would not affect the progress of work.

Article 92

The employer shall be obliged to pay the worker his wages at the time and place
specified in the contract.

Article 93

If the worker reports to work at the hours of the work day specified in the contract and
is prevented to perform his job, he shall be entitled to the pay of that day.

Article 94

The employer or who supervises the work shall prevent the entry of any substance or
the consumption of the same, and whoever found in possession of such substance shall
be subject to the legal punishment in addition to the administrative penalties.

Article 95

Employers who employs more than ten workers shall issue their workers a service
card to bear the signature and the stamp of employer, name, nationality of the worker
and his occupation, date of birth, date of hiring, his wages and others. Date of
termination shall be added when his contract comes to an end. The minister may issue
card forms that shall be applied by the employers.

OBLIGATIONS OF WORKERS

Article 96

In additions to the rules and provisions of this law, the workers shall:

1. Perform the work required of them according to the work contract under the
control and direction of the employer and in accordance of his instructions,
where such instructions do not violate the contract the law or the public
 morals, and if obeying such instruction doesn’t expose to danger.
2. Return in consumed materials to the employer and to take care of the machines
and equips. Replaced under their disposal.
3. To adhere to good conduct and behavior during work time.
4. Extend their assistance without claiming for additional pay, in cases of
disasters and dangers that threaten the safety of workers or the place of work.
5. To undergo the medical examination for the purpose of making sure that they
are free from occupational, common or incurable diseases.
6. Keep the technical, commercial or industrial secrets of material they produce
or they participate in producing it, such secret that may prejudice the interest
of the employer.

Article 97

1. If the worker succeeded to make a new invention during his service, the
employer shall not have the right in that invention.
2. The invention made by the worker shall belong to the employer when the
contract states that the worker shall devote all his efforts for the said invention.
3. If the invention has a significant economical value, worker may in the
mentioned cases claim special compensation which shall be assessed in
accordance to principal of equity. Such assessment shall take in consideration
the amount of assistance extended by the employer.

Margin Annotation: Above article (97) has been canceled as per the provision of
article (61) “ patent invention regulations” issued by the Royal Decree No. M/38 dated
10/6/1409 H where Article 12 of those regulations provided the following: “The
patent invention shall belong to employer whenever it was resulted in the execution of
a contract, or if it contains an obligation of full exertion of effort in invention, or if the
employer proved that the worker would have not reached the invention except, as
result of utilizing the facilities and information granted by employer. The provision of
the previous article shall not prejudice the worker’s right for the obtainment of special
compensation agreed upon by the two parties or assessed by the commission in the
lights of the different circumstances of the contract and the economic value of the
invention. Shall be illegal any agreement that deprives the work from this right. The
previous provision shall be applied to governmental workers .The application for
obtainment of patent that received from the worker (inventor)- shall be considered as
if received during his service even if he has left the work two years back.

Article 98

The worker shall use the protection equipment designated for operation and to be
guided through the instructions set for the reservation of his health and his protection
from injuries and diseases and he shall refrain from ant act or negligence which would
result in failure to abide by the instructions or misusing or impairing the equipment
provided for the protection of his fellow workers. The employer may include the
penalty of whoever violates the provisions of this article in the disciplinary rules.
Article 99

Any work contract signed between the owner or the financier of a Saudi ship of not
than 500 tones, and a sea man or a master to perform work on a board ship, or for a
sea voyage is considered a marine work contract and subject to the provisions of this
law , provided that such provisions doesn’t contradict the provisions of this chapter.

Article 100

The term” Financier of ship” shall mean any natural person or company or public
establishment for whose the account the ship is fitted out.

Article 101

The term “ seaman” shall mean any person, male or female, who works on board ship.

Article 102

All workers on the ship shall be subject to the authority and the orders of the master.

Article 103

All the work contract of seamen shall be entered in the records of the ship, under pain
of mullity and liability. Such contract shall be written in a clear language, leaving no
doubt or controversy about the determined right and obligations. The contracts shall
provide clearly whether it is made for unspecified period or for one voyage where the
town or sea port in which the trip ends shall be determined.

Article 104

The work contract must provide the nature of the work assigned to the seaman and the
method of performance, the wages and supplements to be paid to him, and any other
details.

Article 105

Work regulations and conditions shall be posted on board ship in the place that
reserved for the crew. The terms and conditions shall include the following:

1. Obligations and duties of the seaman towards the financier of the ship and
work regulations board ship.
2. Obligations of the ship financier towards seamen in regard of wages rewards
and others.
3. Methods of wages suspension or deductions and payment of loans against
wages.
4. Place and time for final settlement.
5. Rules of sleeping accommodations and food supply on board ship.
6. Illness and injuries of seaman.
7. Conduct of seamen and their repatriation to their countries.
 8. Paid annual vacations of seamen.
9. Service award and other indemnities and compensation payable at the end of
service.

Article 106

The work contract shall be written in four duplicates, one copy for the master, second
copy for the seaman, third copy to be filed at the cost guards and the forth shall be
delivered to labor office. The contract must show the date on which it is concluded,
the place and the name of the seaman, his surname, age and nationality, home and the
work assigned to him. If the contract is made for one voyage date and place of sailing
shall be mentioned.

Article 107

The seaman must satisfy the following condition:

a. Must have completed 18 years of age.

b. Must be in possession of an appropriate certificate permitting him to work in
marine service.

Article 108

All the entitlements of the seaman shall be payable in the official currency, and may
be paid in foreign currency if it has become due when the ship is outside the territorial
waters and the seaman agrees to that in writing. The seaman may request the employer
to pay his cash dues to whoever he may designate.

Article 109

The employer shall deposit the entitlements of the descendent or lost seaman or to the
seaman who is not able to receive them to the chairman of the primary commission.

Article 110

The employer shall bear the cost of the sleeping accommodation and food of the
seaman. This shall be regulated with decision to be issued by minister of labor.

Article 111

Any seaman participated in the rescue of another ship shall be entitled to a share in the
compensation determined for such a deed regardless the wage.

Article 112

The employer may cancel the contract without an advance notice or compensation or
award if the ship is sinks or confiscated or lost The employer also may cancel the
contract without an advance notice or compensation or award if voyage is cancelled
and was on the basis of one voyage trip.

Article 113

In cases that the contract expired or cancelled the employer shall be obliged to:

a. To return the seaman to the port from which he departed at the beginning of
the contract.
b. To secure food and sleeping accommodation for the seaman until he reached
the port.

Article 114

Working hours on board ship shall not exceed twenty-four hours in two consecutive
days, or one hundred and twelve hours in fourteen consecutive days while the ship is
on high seas, and eight hours while the ship is in port. The seaman may be put to work
on the rest days while the ship is in port for two hours for routine cleaning works.

Article 115

The council of ministers has the right, when necessary, to specify minimum wage
rates in general or for a given district or occupation. The council of ministers shall be
issue such decision according to the recommendations of the minister of labor, and
shall be effective from the date of its publication in the official gazette. For the
recommendation of minimum wages the minister of labor shall seek the assistance of a
committee composed of the deputy of labor office, finance and national economy,
petroleum and minerals sources, commerce and industry. Minister of labor shall select
two additional members of experience and knowledge.

Article 116

The wage and all due entitlements of the worker shall be paid in the official currency
during the working hours according to the following rules:

a. Workers on the daily rated shall be paid once a week at least.

b. Workers on the basis of monthly pay shall receive their wages once a month.
c. If the work is performed in piece and needs a period that exceeds two weeks, a
payment proportionate to the executed work shall be made to him every week
and full balance shall be paid in full within the week following the completion
of the work.
d. In other cases wages shall be paid to workers once a week at least.

Article 117

When the service of the worker is terminated he shall be paid his wages immediately,
however if he leaves the work on his own accord his wages may be paid to him
within seven days at the most from date on which he left the work.

Article 118

The employer may have the right not to pay the worker any due entitlements unless
the latter acknowledge receipt on special record prepared for that purpose at the place
of work according to the form issued by the labor office.

Article 119

No deductions from the worker’s wages may be made to satisfy private rights except
in the following cases:

a. Recovery of advances or excess amounts paid to him provided that such

deduction shall not exceeds 10% of such a wage.
b. Dues of social insurance.
c. Contributions of the worker in the saving fund and advances due for the fund.
d. Any other installments to any plan for construction of houses, if any.
e. Fines inflicted on the worker for offenses under article(125) and any amounts
withheld in consideration of any damage he had caused according to
article(81).
f. Any debt to be recovered in execution of judiciary judgment provided that
deducted amounts shall not exceed one–forth of the wage due and provided
that debt of alimony and debt for food and clothing shall be satisfied before the
other debts.

Article 120

The percentage of deductions shall not exceeds -in all cases – half of the wage due
unless it is proved to the committee the possibility of increasing the deduction beyond
that percentage, or that the worker needs more than one-half of his salary and under no
condition be paid more than three quarters of his salary.

Article 121

In any amount is deducted from the worker's wages for any reason rather than the
provisions specified in this law and without the consent of the worker or if the
employer delays the payment without an accepted justification, the worker or his
representative or the head of labor office may submit an application to the commission
so that it may order the employer to return to worker any wrongly-deducted amounts
or to pay him his outstanding wages.

And if it is proved to the committee that the employer has unjustifiably deducted the
said amounts or delayed payment of the wages, the commission may impose on the
employer a fine that shall not exceed double the amount deducted from the worker’s
wages or double the outstanding wages. Collection of the ordered amount shall be
made through the administrative channels.
Article 122

Service shall be rendered for pay when that service consists in a work not customarily
performed if it is in occupational line of the worker who performed it.

Article 123

a. If the wages that employer is obliged to pay are not provided in the contract of
work or the labor regulations, the wage determined for another work of the
same kind shall be adopted, if exists, or shall be determined with the general
accepted practices of the trade, or, otherwise the commission shall determine
the wage according the requirements of equity.
b. That shall be followed in determining the quality and scope of work, which the
worker must perform.

Article 124

The under-mentioned amounts shall be considered as part and parcel of the wage and
shall be taken into account when computing the amounts to be withheld.

1. Commissions given to peddlers, traveling salesmen, and commercial

representatives.
2. Percentages paid to employees of the commercial establishments on the price
of their sales and allowances paid to them on account of high cost of living.
3. Any grant paid to the worker in addition to his salary, and the awards paid for
his honesty and those for increase in his family obligations and what alike, if
such amounts are determined in the contract or in the labor regulation, or if
paid as a general accepted practice and considered by the workers as a part of
the wage and not a gratuity.

Article 125

The employer who employs more than twenty workers must post a set of rules
covering penalties and rewards and the conditions under which these are to be
imposed or granted and he shall post such rules in a conspicuous place in the
establishment. To be effective, minister of labor thereto must approve such rules and
any modifications within two months from the date of their submittal.

If the said period elapses without the minister’s approval or objection, they shall
become effective. The minister may by decision issue standard rules for penalties and
rewards relevant to the nature of the work, in order that employers may be guided by
them in preparing the rules of theirs own establishments. The employer may not
impose on the worker, for a single offense, a fine exceeding the wage of five days , or
suspend him as a disciplinary measure without pay for a period exceeding five days
for a single offense.

In all cases the worker shall not be subject to more than one penalty for the same
offense, nor shall the amount withheld from his salary in single month in satisfaction
of the fines imposed upon him exceed the pay of five days; nor shall the period of
suspension from work without pay exceed five days per month. Margin Annotation:
The said “Standard rules for penalties and rewards” has been issued under the
decision of the minister of labor No. 119 dated 12/4/1390H.

Article 126

The worker may not be accused of any offense that was discovered more than fifteen
days later; nor may penalized for more than thirty days after the offense is proven with
regard to workers on monthly pay rate , or more than fifteen days after the offense is
proven with regard to other workers. No penalty may be imposed upon a worker
except after hearing his remarks and examining his defense. The worker shall have the
right to object before the labor commission, which shall issue the final decision in that
matter within one week from date of recording the objection with it.

Article 127

Fines imposed on workers must be recorded in special register that shows the name of
the worker, amount of his wage, and reasons for the action and the date on which the
fine is imposed

Article 128

Every employer shall take the precaution required for the protection of his worker
from hazards and diseases resulting from work and machinery used in work, and the
protection and safety of work, and he shall not withhold any amount of the worker’s
wages for providing such service.

Article 129

Employers shall observe following rules:

a. To keep the establishments clean and in a good sanitary condition free from
obnoxious odors.
b. To ventilate the work rooms in the establishment and to keep sufficient area
for breathing according to the health levels and standard determined by
minister of labor.
c. To take the necessary precaution for the protection of workers from injuries
resulting from, any gas, dust, smoke or any other waste that may generate n the
course of the work.
d. To provide sufficient lights during working hours.
e. To provide water closet in an easily accessed places in the rate of on for each
five workers or less.
f. Adequate potable water shall be provided for workers at suitable places.
g. Adequate water and facilities shall be provided for workers to wash
themselves.
Article 130

If the work exposes the worker to a physical injury, poising or disease, the minister of
labor may issue a decision to determine such a work and the measures to be taken by
the employer to protect the worker. The employer or whoever is acting on his behalf
shall inform the worker upon his employment of the hazards of the occupation and the
precautionary measures that he must take.

Margin Annotation:

Minister of Labor issued decision No. 435 dated 4/11/1404H determining the work
and occupations that expose workers to poisoning and the measures, which shall be
taken by employers to protect their workers ( see page 127).

Article 131

The employer shall enclose all the moving parts of power generators and transmission
gears, within a protective guard, He must also fence the manholes and all obstructions
that may expose workers to dangers of falling or collision.

Article 132

The employer shall be responsible for emergencies and incidents which may cause
injuries to persons other than his workers, who may enter places of work by virtue of
their official duties or by the approval of the employer , where such injury is caused
by the employer negligence to take the technical precautions required by the nature of
such a work , and shall compensate them for the damage they my suffer.

Article 133

Every employer shall take the precautions required for fire fighting and to make
available the technical measures for that purpose including the securing safety exits
and to maintain them in serviceable conditions at all times.

Article 134

First aid service shall be provided by the employer according to the standards
determined by the minister of labor in collaboration with minister of health. The
employer shall employ a nurse if his workers are more than fifty in single location or
within a radius of fifteen kilometers. The employer shall assign a physician to
examine and treat the workers at a place provided by the employer. Such service shall
be free of charge whether it is during working hours or otherwise. In case treatment
requires specialist or a surgical operation, the expenses shall be taken from social
insurance fund. The cost of treatment, medicine or hospitalization in government of
chainable hospitals, shall be determined pursuant to the decision made by the minister
of labor in agreement with the minister of health or as provided in the rules of the
social insurance organization. In case the number of worker is less than fifty workers,
the employer shall provide them with a medical first aid cabinet containing bandages ,
medicines and antiseptics that determined by the minister of labor in agreement with
the minister of health in order to provide a first aid to workers. Margin Annotation:
Minister of Labor issued decision No. 4o4 dated 17/6/1394H in regard of the measures
for the medical aid in the places of work (see page 167).

Article 135

Employer who employs more than fifty workers shall notify the labor office of the
physician name whom he has selected for the treatment of his workers, and if the
number workers more than one hundred, he shall notify the labor office of the names
of they physicians and specialists whom he has selected for the treatment of his
worker and also the names of hospitals designated by him for such purpose. And in all
cases he has to notify the labor office on the minimum days fixed for examination of
his worker provided that the minimum shall not to be less than three days a week.

Article 136

Every employer shall prepare a medical file for each worker indicating the result of
the examination performed to him signed by the worker upon employment and
description of his illness and stages of treatment , period absence from work and
whether it is a ordinary disease or a work injury.

Article 137

The employer who employs more than fifty workers shall set a saving plan to be
approved by the ministry of labor provided that the participation in such saving system
shall be voluntary and to provide to them at his own expenses rest and recreation
facilities as per the specifications decided by the minister of labor. If his workers are
five hundred or more , the minister , after taking in consideration , the nature of
working area and the number of workers , may decide that the employer shall carry
out all or a part of the following at his own expenses:

a. To provide – at places of work- shops for sale of food , cloth and others
requirements for a suitable prices.
b. To provide parks and playing fields and cultural libraries for the workers.
c. To prepare medical arrangements for the protection of his workers and for the
treatment of their legal dependants in consideration of the provisions of the
social insurance regulations.
d. To provide schools for education of worker’s children, and to provide adequate
mosques in the places of work.
e. To prepare programs to combat literacy among the workers.
f. To prepare rules for employment, promotion and increments allowances to be
agreeable to the ministry of labor.

Article 138

Concessionaires companies that entrust execution of its business of construction and

maintenance to other contractors shall stipulate in their contracts that they are obliged
satisfy the rights and assume all the obligations that occur to workers if the
concessionaire company itself perform such works(1). Margin annotation: The
original works provided in article (8) and article (138) of this law, shall mean the
normal activity for workers. As for companies it shall mean the original works for
which the company was established to perform those works which are prescribed in
the creation contract or in the concessionaire contract if the company is one of these
companies. This is as per the decision of the council of ministers No. 19 dated
26/2/1400H (see page201).

Article 139

The workers contracts working for Concessionaires companies shall be subject to the
same basic rules applicable for workers of such companies and shall benefit from all
grants, compensation and wage rates in force in such companies.

Article 140

Concessionaires companies assume legal liability toward the workers of its contractors
in application of the two preceding articles, and may, in return. Withhold the price of
work in the manner as would guarantee such liability until the expiration of the
contract.

Article 141

In all contracts in which contractors fail to apply the rules of the preceding articles, the
Minister of labor and social affairs by decision based on the report of the chief of
labor inspectors shall have the right to cancel such contracts following an
investigations he shall conduct.

Article 142

Every employer shall provide means of transport for his workers from place of
residence or a given assembly points to place of work and return them daily if such
places are not reached by ordinary regular means of transport.

Article 143

With regard of workers who perform their work in places far from inhabited areas, (1)
and especially, for those who work in mine quarries, centres of oil exploration,
extraction or exploration, the employer shall be obliged through a decision issued by
minister of labor and social affairs, to the following:

a. To provide workers with adequate living quarters, so some of such quarters

shall be assigned to married workers, conditions and specifications for such
dwellings quarters as well as the rates chargeable to workers for using them
shall be determined by a decision of the minister.
b. To provide his workers with three meals a day at clean places that meet the
sanitary requirements, quantities and kind of food and cost of each meal shall
be determined by the decision of the minister of labor. The food should be
served to workers hygienically wrapped These meals may be replaced by any
 financial allowance.
c. To provide his workers medical, social and cultural services determined by a
ministerial decision.
d. And with regard to those who perform works in exploration areas and living in
camps, employer shall provide them with suitable camps free of charge,
potable water, three meals a day in places prepared for that purpose, quantities
and kind of food shall be determined by the minister and meals may not be
replaced by any financial compensation.
e. The worker may request in special medical care , upon recommendation of the
physician , special food , and if his request is not satisfied , he may demand a
financial compensation in lieu of the meal.

Margin Annotation:
The decision of the Minister of Labor No. 651 issued on 29/12/1401H has determined
such areas as follows: (see page 147).

Article 1 :
The inhabited quarter including all its towns, habitable areas if any. The following
areas, except for Towns and places of work not far from inhabited areas for more than
thirty Kilometers, where there is a paved road , or not more than 25 kilometers where
the road is rough, these areas and towns are:

Western province except for following towns: Holly Makkah,Jeddah, Taif, Yanbu.
Rabi, Al midina Al munawra, Ymluj,Dhbba, Alwajh,Hugal., Badre,Al Gunfudda, And
Allath.

Central province except for following towns: Riyadh, Diryah, Al-kharaj, Liyla in
Alaflaj, Shugra, Anyza, Burada, Al Myjmaa, Al Rus, Al Dawadmi, Afif, Murrat, Al,
Gwaga, Durma, Huta bani Tamim, Huta, Sudir, Al silil, Al harig, Alzulfi, Wadi Al
dawoser.

Southern Province except for following towns: Abha, Khamis Mushait, Najran, Bisha,
Dharan al Gurab, AlNamas, Albaha, Blgurashi, Sabia, Abu Areish.

Eastern Province except for following towns: Dammam, Khobar, Ghateif, Sihat, Ras
Tanura, Reihima, Abu Gag, Alkhafji, Al Jubail, Alhafouf, Almubrz, Althugba,
Dharan, Safwi Northern Province except for following towns: Tabouk, Ara ar, Sikaka,
-Alhouf,Rafha,Hail,Algriyat,Tarif,Hafr Albatin.

Article 2 :
By way of exemption, the rules of this decision shall not apply to the developing areas
and town , and such areas shall be determined through a decision to be issued by the
minister of labor and social affairs.

Margin Annotation:
The decision of the Minister of Labor No 89 issued on 10/3/1403H has determined the
specifications and conditions of the worker’s quarters as follows: (see page 135)

Article 1:
Every employer who employ workers in areas far from inhabited areas specified in the
referred to ministerial decision no,( 651) dated 1401h , in particular in mines,
extractions , oil exploration centres , shall, in the worker’s quarters to be provided by
hi, the following conditions and specifications , without breaking valid rules and
regulations.

Article 2:
The worker’s quarters shall be established away , in a distance not less than one
kilometer ,from industrial areas and places of work that produce materials that cause
pollution like gases, dust, smoke and waste martial.

Article 3:
The decision shall be effective as of the date of its publication in Um-alqurra paper.

Article 144

Every worker who employ more than fifty women shall entrust to a qualified female
nurse to extend medical care to worker’s children under six years of age.

Article 145

Any person who wishes to construct new buildings to use it as a new project, or to add
an annexes to an existing mechanically-operated project, or to increase the automatic
power in a running project , or to covert an existing building into mechanically-
operated project, where he employ twenty workers, shall submit an application to the
Ministry of Commerce and Industry (Industrial Research Center) in order to obtain a
license and he shall attach the following:

1. A map of the site.

2. Design for the building.
3. Layout indicating the locations of the machinery, equipment’s and
specifications.
4. Drawing for the equipment’s or its photographs.

In addition to that, he shall submit any other information clarifying the nature of the
work he shall carry out as will be requested by the Ministry of commerce and
industry. Plans of the buildings must contain all details on locations of doors and
windows and its dimensions, ventilation means, stair cases, fire escape doors, when
the ministry id satisfied, it shall issue the final decision toward the issuance of the
license , the ministry may seek the opinion of the ministry of Health in regard of
health respect if necessary.

Article 146

If the labor office finds that any building or part of it or machinery or devices of the
establishment constitute a danger to human life or safety, and after consulting the
ministry mentioned in previous , shall issue to the manager of the establishment a
written order requesting him to make the necessary repairs within specified period and
to submit technical report showing that he has made the repairs on time
The labor office may , in its written order, specify the protective measures deemed
necessary to prevent any danger and it may prevent the use of the machines or
building which constitute the source of danger until it is repaired or replaced. The
manager of the establishment may, within thirty days from date of notification, appeal
to the minister of commerce and industry, who shall, after consulting the ministry of
commerce and industry , uphold, modify or cancel the order.

Lodging the appeal shall not entail the suspension of the protective measure ordered
by the labor office, not shall it entail stay of execution of the appeal order, unless the
minister of labor decides otherwise.

Article 147

Worker may not employed in an actual work for more than eight hours in any one day,
or forty eight hours a week , in all the month of the year , except for the month of
Ramadan , during which the working hours should not exceed six hours a day, thirty
six hours a week(1) exclusive intervals for prayer, rest or food. Working hours may be
increased to nine hours a day in respect of certain categories or in respect of some
industries and operation where the worker doesn’t work continuously such as seasonal
establishment, hotels, shops and restaurant and also, working hours may be reduced in
respect of some categories and some hazardously or harmful works. Determination of
such work refereed to above shall be made through decision from minister of labor.

Margin Annotation: Royal Order No.454/8 dated 118/3/1405H (page 187). This Royal
order decided that the reduction of working hours during Ramadan is for Moslems
workers only.

Article 148

The working hours shall be scheduled, that no worker shall work more than five
consecutive hours without interval for prayer and food not less than half an hour in
one time or an hour and a half during the total working hours, so that the worker shall
not stay at the place of work for more than eleven hours in one day. In case of
factories where work is performed in successive shifts day and night, the minister
shall regulate granting of interval to workers.

Article 149

Friday, is considered the official holiday, a day of rest with full pay, however, the
employer may , through the approval of labor office, replace it by another day for
some of his workers provided that the working days a shall not exceed seven days a
week and workers shall be enabled to perform their religion duties.

Article 150

In the following cases, the employer may not adhere to the provisions of article 147,
148, 149, of this law:
 a. Annual stock taking, balance sheet, liquidation, closing of accounts,
preparation for reduced price sale, preparation for festive seasons, provided
that the worker shall not remain in job in excess of the prescribed daily
working hours for more than thirty days in one year.
b. If the work is for preventing danger accident, repair of damage resulting from
such danger to avoid certain loss of perishable mentioned.
c. When the work is designed to cope with unusual pressure. In the last two cases
a report shall be submitted to labor office within twenty four hours stating the
emergency case and the period required for the completion of the work and to
obtain a written confirmation in that regard.
d. Holiday and festive seasons and occasions and seasonal operations as may
determined by the minister of labor, and in all foregoing cases, the actual
working hours shall not exceed ten hours a day.

Article 151

The employer shall pay the worker an equivalent of 50% to his normal wage for the
additional work where such work is preformed in the weekly day of rest or on feast
days or on the official holidays.

Article 152

The provisions of article 147 and 148 shall not apply in the following cases:
preparatory and supplementary operation which must be completed before or after the
end of the day.

a. Work which is necessarily intermittent.

b. Worker assigned to watch or cleaning duties.
c. Works in drilling, or exploration for petroleum or mined in remote areas.
d. Works determined in item (a ,b, c,) of this article and the maximum hours
decided by the Minister of Labor (1).

However, the actual working hours for works shown in item (d) shall not exceed 48
hours a week. Margin Annotation: The decision of minister of labor No. (16) dated
18/1/1297H has decided the following in regard of the mentioned preparatory and
supplementary works (see page 157) Article 1:

1. Preparatory and supplementary works shall mean such works which may be
accomplished before or after the end of the working day, such as preparations
of material and equipment’s required for practicing the work, or the delivery of
materials from warehouses, maintenance of machinery and equipment, works
based of shifting system, and other alike.
2. Work which is necessarily intermittent shall mean that work which is not
performed continuously, and which consists of intervals, such work during
which workers do not perform a continual activity, and it doesn’t require
regular attendance of worker, such as the job of the technicians who employed
to repair maintain or operate some machines or those workers employed for
 loading and off-loading works, and railway and bus station traffic workers and
others who practice jobs as such.
3. Worker assigned to watch or cleaning duties:

First: Workers assigned to watch shall mean:

1. Workers assigned for to watch places, equipment’s or properties at night or

day time, without being assigned to any other works that is not necessitated by
the nature of the watch s during working hours.
2. Workers assigned to watch and operate machines of the potable water.

Second:

1. Workers assigned to cleaning works shall mean:

2. Workers who are assigned to secure cleaning to places of work during the
working hours or during intervals provided that their continuous work shall not
exceed six actual consecutive working hours.

Article 2:
The time for the preparatory and supplementary operation may not exceed thirty
minutes to be added to the working hours.

Article 3:
The actual working hours for the work which is necessarily intermittent shall be ten
hours a day, and shall be reduces to eight hours a day during the month of Ramadan,
provided that the worker shall be granted a rest of not less than ten consecutive hours
during every twenty four hours. The employer shall enable the workers to perform
their prayers on time.

Article 4:
The actual working hours of the workers assigned to watch and cleaning shall be
twelve hours a day and shall be reduced to nine hours during the month of Ramadan.
The employer shall enable the workers to perform their prayers on time.

Article 5:
Application of this decision shall not prejudice the acquired rights of the workers
subject to its rules , such rights which are provided in any other regulation ,rules or
contract, juridical order, decision or previous agreement.

Article 6:
To be published on the official paper(1).

(1) The actual working hours for civil guards has been determined through the
decision of the minister of labor and social affairs No.(142) dated 21/99/1416H (see
page 205)

Article 1: The actual working hours for the civil guard who are subject to rules of the
Royal Decree No (7) dated 22/1/1413H, shall not exceed eight hours a day , except for
the month of Ramadan during which it shall reduced to six hours a day
Article 2: The deputy minister of labor and social affairs shall notify those who must
put the decision in force.

Article 153

Every worker who has spent on year in the service of the employer shall be entitled to
an annual vacation of fifteen days with full pay paid in advance. It shall be increased
to twenty one days when the worker completed ten continuous years in service. The
worker through the acceptance of the employer , may defer his vacation or part of it to
the following year, and he may not forgo his annual vacation. The employer shall have
right to choose the dates of such vacations according to the requirements of the work,
or to grant them on rotational basis in order to ensure the running of his business.

Article 154

The worker shall have the right to obtain his pay for the unused days of the vacation
due if he leaves the work before enjoying it , and he shall be entitled to the pay of the
fraction of the year in the proportion to that part of the year he spent in work.

Article 155

Every worker shall have the right to enjoy a vacation with full pay in the official
holidays that determined by the decision of the labor and shall not exceed ten days a
year. Holidays were determined by the decision of the Minister of Labor No.(813)
dated 16/11/1394H (see page 163)

Article 1:
Three days for Lesser Bairam and shall commence on 29th of Ramadan as per Um Al
qura calendar. Four days for the Greater Bairam , and commence on Arafat Day
National Day of the Kingdom , commences on the first of Mizzan.

Article 2:
If the employer wishes to increase the number days of the holidays rather than what is
determined in article 1. He shall decide that before or after the dates determined in that
article and shall distribute it before and after the said dates in the direction that
achieves the work interest.

Article 3:
This decision shall not deprive the workers rights acquired through any other
regulations or agreement, or contract of work or according to customs and habits or
others.

Article 156

The worker may obtain an unpaid vacation not to exceed ten days per year
conditioned by the approval of employer.
Article 157

The worker, while enjoining his vacation, is not allowed to work for another
employer, if such violation is proved, the employer may deprive him from his wage
for the vacation period or recover any vacation pay paid to him.

Article 158

The employer who employs more than twenty workers, shall grant the worker a sick
leave for the first thirty days with full pay , and with three quarters of the pay for the
following sixty days during one year, provided that the illness shall be certified
through a medical certificate issued by a competent physician approved by the
employer.

Article 159

The worker shall be entitled to three days vacation for his marriage and one day for
the following cases:

1. In the event a child is born for him.

2. In the event of death of the wife or any of his ascendants or descendants.
3. The employer shall have the right to request the worker to furnish documents
in confirmation for the said events.

FIRST : COMMON RULES

Article 160

Adolescent, Juvenile and women may not be employed in hazardous or harmful

industries such as power-operated machinery, mines, quarries, and the alike.

The minister of labor shall specify such works that are regarded as harmful, or may
expose women or juvenile or adolescent to given hazards, requiring prohibition of
their employment in such works or to be restricted by special conditions.

Communications of men and women at places of work is not allowed in all cases.

Article 161

Adolescent, Juvenile and women may not be employed during night time between
sunset and sunrise except in cases specified by the minister of labor and in case of
force majeure.

Article 162

Adolescent, Juvenile and may not be employed for a period that exceeds six hours a
day, and exceptions provided in articles (150 & 152) of this law are not applied to
them.
SECOND : EMPLOYMENT OF JUVENILE

Article 163

The Juvenile who has not completed thirteen years of age shall not be not employed
nor enter the place of work. The minister of labor may raise the age limit for some
industries or some areas. The employer and before employing the Juvenile, shall
secure from him the following

1. Birth certificate or age estimation certificate issued by a competent physician

and approved by ministry of health.
2. Certificate of physical fitness issued by a competent physician and approved
by ministry of health.
3. Approval of the juvenile guardian. Where the employer employs a juvenile,
shall notify the labor office within the first week from date of employment.
And to keep an appropriate file for him indicating the name of the juvenile,
age, full name of the guardian, residence, date of hiring, that is in addition to
the record provided in article (10) of this law.

THIRD : EMPLOYMENT OF WOMEN

Article 164

The workwoman shall be entitled to maternity leave for the four weeks preceding the
expected delivery date and six months following that date. Probable date for delivery
shall be determined by the physician of the establishment or by medical certificate
issued by ministry of health.

The employer may not employer employ a workwoman during the six weeks
immediately following her delivery. Workwoman shall be paid half pay during their
absence in case she has been in the service of the employer for one year and with full
bay if she has been to work for more than three years from the date of the
commencement of the leave.

The workwoman shall not be entitled a paid normal vacation provided for in this rules
if she had made use of the maternity vacation in full pay in the same year, and shall be
paid half payment if she made use of maternity vacation with half pay.

Article 165

The workwoman shall be entitled, after her return from the maternity leave , in
purpose to feed her baby, intervals totaling to not more than an hour a day, in addition
to other intervals granted for all.

Article 166

The employer shall bear the expenses of the medical examination, treatment and
delivery.
Article 167

The employer may not terminate the workwoman during vacation period of pregnancy
or maternity.

Article 168

The employer may not terminate the workwoman during the period of her illness
resulting by pregnancy or delivery, such illness shall be confirmed by certified
medical certificate, provided that it shall not exceed six months. She may not be
terminated without a legal reason, such reason provided in this law, during the
immediate six months preceding the excepted date for delivery. If the workwoman is
terminated in violation of the rules of this article, the appropriate commission shall
order her reinstatement.

Article 169

The workwoman shall not be entitled her rights acquired by the provisions of this
chapter if proved that she had worked for another employer during her approved
leave. The employer in this case may deprive her vacation pay or recover from her
amounts he paid for that regard.

Article 170

By way of exception, provisions that prohibit or restrict the employment of

adolescents juvenile and women shall not apply the charitable or official institutes
with vocational character, provided that nature of work, working hours, conditions,
suitability for heath capability of workers shall be determined and such rules shall be
approved by the ministry after consulting the opinion of the ministry of health.

Article 171

In all places of work and occupations, where women perform a work, seats shall be
provided to secure comfort to them.

Article 172

Labor Commission and Settlement of disputes shall be:

1. Primary committees for settlement of disputes.

2. Supreme committees for settlement of disputes.

Article 173

The primary committees shall be formed in labor offices or branches according to the
selections the Minister of Labor.

The committee shall be composed of three members experienced in legal matters At

least, the chairman and one of the other members shall be graduated in shur’ia.

Article 174

The primary committee shall be authorized to

First: Render final decision on:

1. Workers disputes that doesn’t exceed SR 3000.

2. Disputes relate to stay of execution raised according to the rules of this law.
3. Disputes relate to imposed fines or the application for exemption of the same.

Second: To render final decision on:

1. Worker’s disputes exceeding SR 3000.

2. Disputes relate to work injuries whatsoever its value is.
3. Disputes relate to dismiss.

Article 175

The supreme committee for settlement of disputes shall be constituted by decision of

council of ministers, of five members, three to represent Ministry of labor and social
affairs, one to represent the ministry of commerce and industry and one for the
ministry of petroleum and minerals resources.

The decision shall name one of the members as Chairman of the committee. The
chairman and the members of the committee shall be impartial and well experienced
in legal matters.

Article 176

The supreme committee is exclusively authorized to render final decisions in all

disputes raised before it and to apply to violators the fines provided for in this law.

Article 177

The council of ministers shall issue the regulations of appeal and arbitration and
conciliation before the primary and supreme committees. The Minster of labor shall
issue decision for the constitution of an office for each committee and to indicate the
number of clerks. Attendants, employees, administrators assigned to perform such
work.

Article 178

The supreme and the primary committees shall issue their decision by majority vote of
their members., such decision shall be justified and signed by all members, and who
dissent shall mention hi reasons for such dissention.
Article 179

The committee has the exclusive right to hear all disputes of contracts of work, and to
present persons for investigations, and it may request presentation of documents and
evidences and to take required procedure in that regard. The committee shall have the
right to access any place occupied by any establishment in order to perform
investigations as required according to the provisions of this law.

Article 180

Suits shall be raised to the primary committee. The committee shall issue its decision
within the period limits as per the rules of article 177. If one of the parties wishes to
appeal to the decision of the primary committee, such party shall submit his
application to the Supreme committee within thirty days from date on which he
received the notification about the decision.

Article 181

The chairmen of the committee shall date for hearing within fifteen days and the
concerned committee shall promptly issue its decision within not more than thirty
days from the date of the first hearing.

Article 182

If the decision of the primary committee is not appealed to within the limited period as
provided in article (180), it shall become final and must be executed. The decisions of
the supreme committee shall be executed immediately after being notified to the
concerned parties and the dispute parties shall be obliged to execute the conciliation
decision once it is registered to one of the authorized committees.

Article 183

In all cases the dispute parties shall have the right to appoint –in agreement- one
arbitrator for each party or one or more arbitrator for each party to rule the dispute,
that is in lieu of the committee provided for in this chapter.

If agreement is not reached in selecting an umpire, the chairman of the primary

committee shall appoint the said umpire if not already appointed through the decision
document. Time limits and rules to be followed in such procedures shall be
mentioned.

The agreement of arbitrators shall be an instance decision and appealable before the
supreme committee within the periods and rules provided for the appeal before such
committee, unless otherwise stated clearly in the decision of the arbitrators, then theirs
shall be concluded. Copy of the decision document shall be filed to the primary
committee within a week form date of issuance.

Article 184
The agreements reached by the arbitrators shall be executed after being registered to
the appropriate primary committee after approval of the chairman of it.

Article 185

The committees provided in this chapter shall not abstain issuing their decision on the
grounds that there is no applicable text, and it must- in such cases - implement the
principles of Islamic rules, established judicial procedures, usage and rules of right
and equity.

Article 186

Any of the parties may not raise again the dispute of which a decision was issued by
one of the committees provided in this chapter.

Article 187

The employer may not change the terms of the contract during the procedures of the
conciliation or arbitration, or impose penalty on him or dismiss him without a written
permission issued by the appropriate committee.

Article 188

If the primary committee is not constituted in a given area, the minister may assign its
tasks and duties to the nearest constituted committee.

Article 189

1. Any person who forms a league with a group of other persons in purpose to
stopping:
a. Means of transportation between the towns of the kingdom or between
the kingdom and other countries.
b. Postal or telegrams or telephone communication.
c. Any of public establishment, especially those concerned with
distribution of water, electricity or principal food stuff.

Shall be punished with imprisonment for a term of one month to one year or a
fine of SR 1000 to SR3000 or with both penalties.

2. The same punishment shall apply to any of the concessionaire of the above-
mentioned establishment who stops operating such services without a valid
reason.

3. If the crime accompanied by violence act upon others or by threatening or by

other means of or by measure of deceit or by false affecting mind, or by
gathering in public roads, or by occupying places of work, such offenders shall
be punished with imprisonment for a term of six months to two years or with
 fine of SR 1000 to SR 5000 or both.

Article 190

Whoever by using one of the means mentioned in the last paragraph of the previous
article causes or attempts to cause in agreement among themselves or encourages
them or attempts to encourage them to stop the work shall be punished with
imprisonment for the term of one year to three years or with fine of SR 5000 to SR
10000 or both.

Article 191

If the employer or the head of the enterprise stops the work in order to put pressure on
the local authorities or protesting against a decision or orders issued by such
authorities instead of seeking legal measures, shall be punished with imprisonment for
the term of two years to six years or with fine of SR 4000 to SR 10000 or both.

Article 192

Without prejudicing the rules of other laws and regulations provided to who may
prevent an official from discharging his legal duties, whoever violated the provision of
article (26) of this law shall be punished with a fine of SR100000 and shall be doubled
if the offense is repeated.

Article 193

Whoever violates the provisions of article (41) of this law shall be punished with a
fine not less than SR 500 and not more than SR 1000

Article 194

Whoever violates the provisions of article (44) of this law shall be punished with a
fine not less than SR 500 and not more than SR 1000

Article 195

Whoever violates the provisions of article (44) of this law shall be punished with a
fine not less than SR 500 and not more than SR1000.

Article 196

Whoever violates the rules provided in article (49) of this law that govern bringing
foreigners into the country in purpose of employment shall be punished with a fine not
less than SR 500 and not more than SR 1000

Article 197

Whoever violates the rules relate to vocational training of Saudis in order to replace
them with foreigners, provided for in article (50) of this law shall be punished with a
fine not less than SR 500 and not more than SR 1000 for each worker.

Article 198

Whoever violates the rules of chapter five of this law shall be punished with a fine not
less than SR 500 and not more than SR1000.

Article 199

Whoever violates the rules of wages provided for in article (116) of this law shall be
punished with a fine of SR200 for each worker and shall be ordered to recover
differences for all.

Article 200

The employer or any responsible who violates any of the provisions of chapter six
shall be punished with a fine of SR200 for each worker.

Article 201

The employer or any responsible who violates any of the provisions of chapter seven
or any other regulations or decisions or orders shall be punished with a fine not less
than SR500 and not more than SR 1000 for each offense.

Article 202

Whoever violates any of the rules of chapter eight shall be punished with a fine of SR
1000 or with shutting down the establishment or stopping the new constructions.

The appropriate labor office shall seek the assistance of the administrative authorities
in of executing such decisions.

Article 203

The employer or the manager of the establishment who violates any of the provisions
of chapter nine or any other regulations or orders shall be punished with a fine not less
than SR 500 and not more than SR1000 for each offense.

Article 204

If the employer violates any of the provisions of chapter ten shall be punished with a
fine not less than SR 500 and not more than SR1000 for each offense.

Article 205

Any employer or a head of enterprise or a worker who refuses or delays a decision of

arbitration committee, or any other decision issued by one of the committees provided
for in chapter eleven of this law the punishment that imposed on him if any shall be
doubled, or he shall be punished with a fine not less than SR 500 and not more than
SR1000 or with imprisonment for a term not more than three months or both.

Article 206

In consideration of the provisions of article (78) of this law. Any worker who refuses,
in cases of necessity, to work in elsewhere than the original place of his residence or a
perform a work different than the work provided in the contract, shall be punished
with fine not more than SR100.

Article 207

The employer or the responsible manager shall be punished for any violations in
regard of any of the provisions, rules, orders or decision of this law, where penalty is
not provided, with fine not less than SR 100 and not more than SR500 .

The provisions of this law shall apply unless severe penalties are provided in other
regulations. All fines shall be deposited in worker’s social insurance fund in special
account in order to be spent on the projects set for upgrading of workers standards in
the Kingdom and according to the decisions of the Minster of labor.

Article 208

Demotion may not apply to the worker’s class nor his wage shall be decreased except
in cases where provided for in this law or the related decisions.

Article 209

The Minister of labor shall issue decisions and regulations required for the
implementation of this law except where other authority has been designated for such
a purpose.

Article 210

The labor and workers law issued on 25/11/1366H as well as all regulations and
orders and decisions in effect prior to the coming into force of this law are hereby
replaced in so far as they are not in contradiction with the provisions of this law

Article 211

This law shall be effective as of the date of its publication in the official gazette.