Private sector employee rights in the Kingdom of Saudi Arabia are of the fundamental issues that have garnered increasing attention, especially in light of the rapid developments the country is witnessing in the economic and social development areas. The private sector plays a pivotal role in driving economic growth and is the primary engine for job creation and productivity enhancement. In addition, employee rights are fundamental to fostering a balanced and efficient work environment.

Private sector employee rights in the Kingdom of Saudi Arabia must encompass all aspects of employment, from recruitment and training to wages and working conditions. Saudi Labor Law mandates that companies provide essential rights to all employees, such as fair wages, reasonable working hours, and rest periods, in addition to ensuring a work environment free from discrimination and harassment.

Enhancing employee rights in Saudi Arabia's private sector significantly boosts job satisfaction, loyalty, and employee engagement, resulting into improved company performance and increased productivity. To ensure a stable and productive work environment, companies must strictly adhere to laws and regulations related to employee rights. This article will delve into the key employee rights in Saudi Arabia's private sector and examine their profound impact on the success of organizations within the Kingdom.

What are private sector employee rights in the Kingdom of Saudi Arabia?

The Labor Law and its Executive Regulations encompass a diverse range of employee rights in the private sector. This comprehensive set of rights reflects the Kingdom's commitment to providing a balanced and stable work environment that safeguards the dignity and rights of Saudi employees in the private sector. This, in turn, contributes to enhancing productivity and social stability. The most prominent among Saudi employee rights in the private sector are:

1- Working hours for private sector employee in the Kingdom of Saudi Arabia

• Working hours for private sector employee shall not exceed eight hours per day if the employer adopts a daily standard. However, if the employer adopts a weekly standard, the Saudi employee is not entitled to work for more than forty-eight hours per week.
• During the month of Ramadan, the actual working hours for Muslims shall be reduced to a maximum of six hours per day or thirty-six hours per week.
• Working hours may be increased to a maximum of nine hours per day for certain categories of employees or for certain industries and jobs where work is not continuous.
• Working hours may be reduced to a maximum of seven hours per day for certain categories of employees or for certain hazardous or harmful industries such as mining, explosives manufacturing, or tanning.
• For establishments where the nature of the work necessitates shift work, with the approval of the Ministry of Human Resources and Social Development, the employer may increase working hours beyond eight hours per day or forty-eight hours per week, provided that the average working hours, when calculated over a period of three weeks or less, do not exceed eight hours per day or forty-eight hours per week. Such an increase is subject to the Ministry's approval.

2- Rest periods for private sector employee in the Kingdom of Saudi Arabia

• Private sector employee is not entitled to work for more than five consecutive hours without a period for rest, prayer, and meals. Such period shall not be less than half an hour each during the total working hours, given that employee is not entitled to remain at the workplace for more than twelve hours per day.
• Periods designated for rest, prayer, and meals shall not be counted as part of actual working hours.
• During rest periods, a Saudi private sector employee shall not be under the employer's authority, and the employer shall not require the employee to remain at the workplace.
• For work determined by the Minister that necessitates continuous operation without granting employees rest periods due to technical reasons or operational circumstances, the employer shall provide employees with periods for prayer, meals, and rest, to be arranged by the establishment's management during working hours.

2- Weekly rest for private sector employee in the Kingdom of Saudi Arabia

• Friday shall be the recognized weekly rest day for all Saudi private sector employees in the Kingdom of Saudi Arabia.
• The weekly rest day shall be fully paid and shall not be less than twenty-four consecutive hours.
• The employer may substitute another day of the week for Friday as the weekly rest day for some employees after notifying the competent labor office and ensuring that employees are able to fulfill their religious practices on Friday.
• The weekly rest day shall not be compensated for with a cash equivalent.
• Accumulating weekly rest days may be permitted for employees working in remote areas or in jobs where the nature of the work and operational conditions necessitate continuous operation, provided that the accumulation period does not exceed eight weeks upon mutual consent of the employer and employee, subject to the Ministry's approval. The calculation of the rest period shall commence from the time the employee arrives at the nearest city with transportation facilities and end upon his return.

4- Overtime for private sector employee in the Kingdom of Saudi Arabia

• The employer shall pay employee overtime pay equal to one and a half times the employee's regular hourly rate for all hours worked in excess of the standard working hours. The employer may, with the employee's consent, grant the employee compensatory paid time off in lieu of overtime pay.
• If an establishment operates on a weekly standard of working hours, all hours worked in excess of that standard shall be considered overtime hours.
• All hours worked on rest days and public holidays shall be considered overtime hours.

5- Annual leaves for private sector employee in the Kingdom of Saudi Arabia

• Private sector employee in the Kingdom of Saudi Arabia is entitled to an annual leave of not less than twenty-one days for each year of service, which shall be increased to a minimum of thirty days after five consecutive years of service with the employer.
• The leave shall be paid in advance, and the employee may, with the employer's consent, postpone the annual leave or any part thereof to the following year.
• The employee shall be entitled to take the leave in the year in which it is earned, and the employee shall not waive the leave or accept a cash equivalent in lieu thereof during the period of employment. The employer may determine the timing of such leave according to the exigencies of work, or grant it in rotation to ensure the continuity of work, provided that the employer notifies the employee of the specified date for taking the leave in sufficient time, not less than thirty days.

6- Other leaves for private sector employee in the Kingdom of Saudi Arabia

• A private sector employee in the Kingdom of Saudi Arabia is entitled to payment for any accrued but unused annual leave if the employment is terminated before the leave is taken.
• The employee shall be entitled to a payment for any part of the year worked.
• Every employee is entitled to a full-paid leave for the following holidays:
• Eid al-Fitr for four days commencing on the day following the 29th of Ramadan.
• Eid al-Adha for four days commencing on the day of Arafah.
• The National Day of the Kingdom for one day.
• An employee is entitled to a full-paid leave of five days upon marriage, or in the event of the death of his spouse, ascendant, or descendant, and three days in the event of the death of a sibling, all of which shall be calculated from the date of the event. In addition, the employee shall also be entitled to a three-day paid leave upon the birth of a child within seven days from the date of birth. The employer may request supporting documents for such cases.
• An employee is entitled to a paid leave of not less than ten days and not more than fifteen days, including Eid al-Adha, to perform Hajj once during his employment in case the employee did not perform Hajj before, provided that he has completed at least two consecutive years of service with the employer. The employer may determine the number of employees to be granted this leave annually according to the exigencies of the work.
• An employee is entitled to a full-paid leave to sit for an exam for a non-repeat year, the duration of which shall be determined based on the actual number of exam days. However, if the exam is for a repeat year, the employee shall be entitled to an unpaid leave for the number of actual exam days.
• An employee is entitled to a sick leave with full pay for the first thirty days, three-quarters of the pay for the following sixty days, and without pay for the subsequent thirty days within one year, whether such leaves are continuous or intermittent.

6- End of service gratuity for private sector employee in the Kingdom of Saudi Arabia

• A Saudi private sector employee is entitled to an end of service gratuity determined based on the length of service and the last basic salary. In case of termination of employment by the employer, the employer shall settle all dues within a week from the date of termination. If the employee terminates the contract, the employer shall settle all dues within two weeks.
• The employer may deduct any debt owed by the employee arising from the employment from the amounts due to the employee.
• Upon termination of employment, the employer shall pay the employee an end of service gratuity calculated based on half a month's basic salary for each of the first five years of service and one month's basic salary for each subsequent year, provided that the last basic salary shall be the basis for calculating the gratuity. The employee shall be entitled to a gratuity for any part of a year worked on a pro-rata basis.

What are private sector female employee rights in the Kingdom of Saudi Arabia?

In addition to the aforementioned rights, a private sector female employee in the Kingdom of Saudi Arabia is entitled to the following rights:

1- Paid maternity leave:

• A private sector female employee in the Kingdom of Saudi Arabia is entitled to a fully paid maternity leave of twelve weeks, of which the six weeks following childbirth are mandatory. The employee may distribute the remaining six weeks upon sole discretion, starting from four weeks prior to the expected date of delivery. The expected date of delivery shall be determined by a medical certificate issued by a health authority. In the event that the remaining period of leave is less than six weeks due to a delay in childbirth, the complementary period shall be considered unpaid leave. In all cases, a female employee is entitled to extend this leave for an unpaid one month.

2- Leave for sick or disabled child

• In case of delivery of a sick or disabled child requiring constant care, a private sector female employee in the Kingdom of Saudi Arabia is entitled to a paid leave of one month commencing after the end of the maternity leave period to be extended for an additional unpaid month.

In conclusion, understanding the rights of private sector employees in the Kingdom of Saudi Arabia is crucial for ensuring a fair and stable work environment. Knowledge of these rights not only upholds the dignity of employees but also contributes to increased productivity and job satisfaction. Employees are the backbone of any company, and safeguarding their rights fosters loyalty and motivates them to perform at their best. Therefore, companies should promote awareness of employee rights through training and instruction programs, thereby cultivating a corporate culture built on mutual respect and justice. By adhering to employee rights, not only do employees benefit, but companies also reap the rewards of improved overall performance and sustained success.

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