Employment Contracts for Expats in Saudi Arabia: What to Check Before You Sign

What the law requires

Written and fixed-term. A non-Saudi's employment contract must be in writing and for a fixed term. If no term is stated, the contract runs for one year from your actual start date. If you keep working after that, it renews for a similar year (Article 37).

How renewal works. If your contract contains a renewal clause, it renews for the period agreed in that clause (Article 55(2)). The one-year rule in Article 37 applies only where no term is stated. It does not override a different term in your contract.

A non-Saudi's contract stays fixed-term however many times it is renewed (Implementing Regulations, Article 12). The conversion to an indefinite contract under Article 55 does not apply to non-Saudis.

Documented on Qiwa. The contract is made in two copies and documented as the regulations require (Article 51). In practice, this means Qiwa. The contract follows the unified model contract (Article 52).

Arabic prevails. If you also have an English version and the two differ, the Arabic text controls (Article 9). If you do not read Arabic, have the Arabic version checked against the English before you rely on it.

Unlawful terms are void. Any term that conflicts with the Labor Law is void. A waiver of your rights made while the contract is running is also void, unless it is more favorable to you (Article 8).

The offer letter versus the Qiwa contract

Many expats sign an offer letter abroad and only see the contract registered on Qiwa later. The two documents often split the salary differently.

Example: A technician from the Philippines accepts an offer of "SAR 4,500 per month, all-inclusive". The Qiwa contract shows:

• basic salary: SAR 2,500
• housing allowance: SAR 1,250
• transport allowance: SAR 750

The total is the same, but the split matters later:

• Overtime is calculated partly on the basic wage (Article 107).
• End of service is based on the "wage", which the Labor Law defines as the actual wage: the basic wage plus the other amounts you receive for your work (Article 2).

See Are Allowances Included in End of Service Pay?

Keep the offer letter, the emails, and screenshots of the Qiwa contract. If a dispute arises, they are evidence of what was agreed. See Are WhatsApp Messages Evidence in Saudi Courts?

Clauses to check line by line

1. Job title and duties. Your employer may not assign you work that is substantially different from the agreed work without your written consent. The only exception is a necessity caused by temporary circumstances, for up to 30 days a year (Article 60). For a non-Saudi worker, the profession recorded on the work permit must also be respected (Article 38).
2. Place of work. A transfer that requires you to change your place of residence needs your written consent (Article 58). There are two exceptions:
   • a temporary necessity, for up to 30 days a year, with the employer paying your travel and accommodation (Article 58);
   • a clear mobility clause in your contract, or a clause saying you may work "anywhere in the Kingdom", which counts as written consent given in advance (Implementing Regulations, Article 20).

Read this clause carefully if you are hired for Jubail but may later be sent to a remote site.

3. Salary breakdown. Check the basic salary and each allowance. The employer must provide suitable housing, or a suitable cash allowance paid with the wage (Article 61(5)). It must also provide suitable transport between your housing and work, or a suitable cash allowance (Article 61(6)). The law sets no fixed percentage for either allowance.
4. Probation. It must be stated expressly, with its length, and the total cannot exceed 180 days (Article 53). See Probation Period in Saudi Arabia.
5. Term and renewal. Check the start date, the end date and any renewal clause (Articles 37 and 55(2)).
6. Termination compensation. Article 77 allows the contract to set its own compensation for termination without a legitimate reason, but never below two months' wage. If your contract sets a low figure, that figure may replace the statutory formula.
7. Non-compete. A restriction that applies after you leave is valid only within the limits of Article 83. See Non-Compete Clauses.
8. Overtime wording. A clause saying overtime is "included" in your salary cannot reduce what the law guarantees (Articles 8 and 107).
9. Costs. Your employer bears the fees for your iqama and work permit and for their renewal (Article 40(1)). A clause that shifts these costs onto you can be challenged.

Can the salary be reduced later?

Your employer is bound by the agreed wage (Article 52). It cannot reduce that wage on its own decision. Wages must be paid as the law requires, and deductions are restricted (Articles 90 and 94).

Two things are different. A change to your wage for the future, validly agreed by both of you, can be lawful. A deduction from wages you have already earned, outside the cases the law allows, is not.

When the contract ends

A fixed-term contract ends when its term expires (Article 74). Article 85's reductions apply to resignation. Where a fixed-term contract simply expires, the award is generally calculated under Article 84 without those reductions. If you declined a renewal or resigned close to expiry, the position can be disputed. See End of Service After Resignation or Contract Expiry.

For employers

The Qiwa contract is the document you will be held to. Make sure the salary breakdown, the probation clause, any mobility clause and any Article 77 compensation figure are stated clearly in the Arabic text. Make sure the offer letter matches.

A mismatch between the two documents can lead to claims against the company. See Labor Law Support for Employers.