Posted by : Aahil Shaik Sunday, February 9, 2020

Saudi Arabia's Employment Contract Term - Employer Responsibilities as per Saudi Labor Law

The employment contract of expatriate workers in Saudi Arabia must be in written from Employer or Sponsor to the employee and it should be in a definite specific term and not indefinite term as per Article 37 of Saudi Labor Law. Related : New amendments in Saudi Labor Law




In case, If the contract term is not specified, Then expiration date of the work permit or Iqama will be considered as the expiration date of the contract in Saudi Arabia.

Employer's or Sponsor's Responsibility on Expatriate Employees in Saudi Arabia (Article 40 of Saudi Labor Law) :

1. The Employer in Saudi Arabia is responsible for the cost of recruiting new employees and expatriates into the country.

2. The cost of residence permit and work permit for expatriate employee should be bear by employer or sponsor.

3. The cost of Renewal of residence permits and work permits (iqamas) is the duty of the employer. Including fines of late renewals.




4. The employer is responsible for the cost of changing occupation on iqama, exit re entry visas and the cost of return tickets of employees after the termination of the contract.

5. In case the employee is not eligible for work or he wish to return without specific reason, the employee itself responsible for the cost of ticket.

6. The new employer is responsible for transfer expenses if the employee wishes to transfer his sponsorship to the new employer.

7. An employer shall be responsible for the cost of preparing the body of a deceased worker and transporting it to the location of the worker or where the worker recruited with the approval of his family.



Employment Contract Term - Employee Rights as per Saudi Labor Law

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