LABOR AND WORKMEN LAW
The Labor and Workmen Law of the Kingdom has been approved by the Council of
Ministers on his Decision No 745 dated 24 Sha’ban 1389 H. (4 November 1969) and
issued under Royal Decree No. M/21 of 6 Ramadan 1389 H. (6 November 1969). Labor
disputes are governed by this law. Under Article 2, the provisions of this Law
shall apply to the following: ©Saudia-Online
- a- Any contract under which any person undertakes to work for the
account of an employer under the latter's direction or control in
consideration of wage.
- Contracts of Apprenticeship (industrial indentures).
- Workmen of the government, local authorities, charitable institutions,
and public organizations.
Article 147 of the law states that "a workman shall not be employed for more
than eight actual working hours in any one day, or forty-eight hours a week, in
all months of the year, with the exception of the month of Ramadan when actual
working hours shall not exceed six hours a day or thirty-six hours a week,
exclusive of the intervals reserved for prayer, rest, and meals. The number of
working hours maybe raised to nine hours a day in respect of certain categories
of workmen or in certain industries and operations where the workman does not
work continuously, such as seasonal establishments, hotel, snack bars,
restaurants, etc. The number of daily working hours may be reduced for certain
categories of workmen, industries, and operations referred to in this Article,
these to be determined by decision of the Minister of Labor." Articles 148-159
(Chapter IX) of the said law deal with some other aspects of working hours and
weekly holidays. ©Saudia-Online
Article 151 defines the wage for additional work hours to be the workman’s
normal wage plus fifty percent. Article 153 stipulates that the workman who has
completed one year in service of the employer shall be entitled to an annual
vacation of fifteen days with full wages payable in advance. This vacation shall
be increased to 21 days when the workman completes ten continuous years in
service of the employer.
Chapter XI of the said law concerned with Labor Commissions and Settlement of
Disputes. The Law States that the Labor and Settlement of Disputes Commissions
shall be as follows:
- The Primary Commissions for Settlement of Disputes.
- The Supreme Commissions for Settlement of Disputes.
Article 174 defines the exclusive jurisdiction of "The Primary Commission
for Settlement of Disputes" as:
1- To render final decisions on:
a) Labor disputes, the value of which does not exceed three thousand
b) Disputes relating to the stay of execution of decisions to
terminate workmen, which are filed in accordance with the provisions of
c) Disputes relating to the imposition of fines or requests
for exemption from such fines.
2- To render decisions of first instance on:
a) Labor disputes, the value of which exceeds three thousand
b) Disputes pertaining to labor injuries whatever the amount
involved may be.
c) Disputes pertaining to termination of
Article 176 states that "the Supreme Commission shall have exclusive
jurisdiction to render final and definitive decisions in all disputes referred
to it on appeal and shall likewise be competent to impose upon the violators of
the provisions of this Law the penalties prescribed herein". ©Saudia-Online
For further details pertaining to the Labor and Workmen law and attached
procedures, contact the Ministry of Labor and Social Affairs, Labor Affairs
Agency (see appendix I for address).
seven-chapter new social insurance system was issued in the Kingdom of Saudi
Important Note: The English translation of the above
regulations is for general information only. The Arabic text is the official
text that has legal force.