Saudi Labor Law for OFW: The Best Guide With Etqan Lawfirm

Saudi Labor Law for OFW sets the legal foundation for protecting the rights and welfare of Filipino workers employed in the Kingdom of Saudi Arabia. With more than 725,000 OFWs currently residing in the country, the Saudi government has implemented a clear set of rules designed to regulate employment contracts, working hours, wages, leave entitlements, and end-of-service compensation while ensuring fair and humane treatment throughout the duration of employment.

This article provides a comprehensive overview of the Saudi Labor Law for OFW, including key provisions on probation periods, minimum salary standards, benefits, domestic worker regulations.

Saudi Labor Law for OFW

• Under the Saudi labor law for OFW, the probationary period must not exceed 90 days, excluding sick leave as well as Eid al-Fitr and Eid al-Adha holidays.
• According to the Saudi law for OFW, either party may terminate the employment contract during this period unless the contract specifically grants the right of termination to only one party.
• If termination occurs without valid grounds, the affected party is entitled to compensation to be determined by the Commission for the Settlement of Labor Disputes, taking into account the circumstances of termination and any material or moral damages incurred or likely to be incurred.
• A worker dismissed without legitimate cause has the right to seek reinstatement. Any such claims will be handled according to the provisions of Saudi Labor Law and the procedural rules of the labor dispute resolution commissions.
• The standard working time is 8 hours per day, not exceeding 48 hours per week. In some industries or job categories where work is not continuous, this may increase to 9 hours per day, or be reduced to 7 hours per day in hazardous or harmful occupations.
• During the month of Ramadan, the Saudi labor law for OFW requires that working hours be shortened to 6 hours a day or 36 hours per week.
• No worker may be required to work more than 5 consecutive hours without a break of at least 30 minutes for rest, meals, or prayer. In all cases, a worker must not remain in the workplace for longer than 11 hours in a single day.
• The Saudi labor law for OFW entitles workers to one rest day after every six consecutive working days.
• The weekly rest day must be fully paid and shall not be less than 24 consecutive hours.

Read also: Saudi Labor Law Vacation Pay: A Comprehensive Guide

Indemnity for OFW in Saudi Arabia

Compensation and Benefits for Filipino Workers in Saudi Arabia cover several key aspects under Saudi labor regulations, including salary, leave entitlements, end-of-service benefits, and repatriation costs.

Every Filipino worker must have a documented employment contract that clearly specifies their rights most importantly, their monthly salary. Workers are entitled to one month of paid leave after every two years of continuous service.

They are also eligible for an end-of-service award equivalent to one month’s salary for every four consecutive years of service. Upon the expiry or legitimate termination of the contract by either party, the employer is responsible for covering the cost of the worker’s return ticket to their home country, in accordance with Saudi labor law for OFW.

Check out: The Saudi Labor Law: Key Regulations & Employee Rights

How Many OFW in Saudi Arabia?

As of the most recent estimates, there are approximately 725,000 Filipino workers (OFWs) residing in Saudi Arabia representing about 5.4% of the total expatriate population in the Kingdom.

Saudi Labor Law for Domestic Helper

The new domestic labor system in Saudi Arabia aims to regulate contractual relationships between employers and household workers, safeguarding the rights of both parties through standardized employment contracts that take into account working hours, leave entitlements, monthly wages, and the provision of a safe working environment that preserves the dignity of workers during their service period.

The system strengthens the protection of Filipino domestic workers, among others, by ensuring access to health insurance, suitable accommodation, psychological support, and training, while streamlining recruitment procedures legally.

The key rights that employers must uphold include:

• A fair monthly salary, paid on time without delay.
• A daily rest period of at least 9 hours, in addition to a weekly day off agreed upon by both parties.
• Paid sick leave of up to 30 days per year, supported by a medical report.
• One month of paid leave after every two years of continuous service, should the worker choose to renew her contract.
• Access to healthcare and medical insurance, alongside provisions of safety equipment to protect against occupational hazards.
• Provision of decent, clean, and private accommodation that meets health standards.
• An end-of-service award equivalent to one month’s salary for every four consecutive years of service with the same employer.
• Upon termination or expiration of the domestic worker’s contract, both parties must adhere to the conditions specified therein. The employer is required to settle all outstanding dues including unpaid wages, bonuses, and agreed-upon compensations and obtain an end-of-service certificate to officially end the contractual relationship. The employer is also responsible for covering the cost of the worker’s return to her home country.
• According to Article 22 of the Domestic Workers Regulations, the end-of-service benefit must be paid in full at the end of the contract without any deductions or conditions, and official holidays may not be deducted from the worker’s salary.

Learn about: Understanding Important Tips of Article 75 Saudi Labor Law

Conclusion

Adherence to the Saudi Labor Law for OFW is a fundamental step toward protecting the rights of Filipino workers and ensuring a fair and stable employment relationship between both parties in the Kingdom of Saudi Arabia.

If you require reliable legal advice or wish to have your employment contract reviewed for compliance with Saudi regulations, Etqan Law Firm is pleased to offer you specialized legal support and tailored solutions.

The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +966550600204, +966551020060.

Additionally, feel free to visit our branches located at:

• Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
• Riyadh: King Abdulaziz Street, across from the Kingdom Tower
• Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.

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