Under Saudi Labor Law, an employee is entitled to a minimum of 21 days of paid annual leave for each year of service, increased to a minimum of 30 days once the employee completes five consecutive years with the same employer, and the leave is paid in advance. Alongside this annual leave, the Labor Law grants the employee other paid leave for specific occasions, such as official holidays, Hajj, marriage, bereavement, and childbirth, which are governed by separate articles as set out below.

Duration of Annual Leave

The Labor Law provides that an employee is entitled to an annual leave of not less than 21 days for each year, increased to not less than 30 days if the employee has completed five consecutive years in the employer's service, and the leave is paid in advance.

Rules for Taking Leave

The employee must take the leave in the year it accrues; it may not be waived, nor may the employee receive cash compensation in lieu of it during their service. The employer may set the timing of leave according to work requirements, or grant it on a rotating basis, but must notify the employee of the scheduled date of leave with at least 30 days' notice.

Deferring Leave

With the employer's approval, the employee may defer the annual leave, or part of it, to the following year. The employer also has the right to defer the employee's leave after the end of the year in which it accrued if work requirements so demand, for a period not exceeding ninety days; if work requirements necessitate a further deferral, the employee's written consent must be obtained, provided the deferral does not extend beyond the end of the year following the year the leave accrued.

Right to Leave Pay Upon Leaving Employment

The employee has the right to be paid for accrued leave days if they leave employment before using them, for the period for which leave was not taken, and is also entitled to leave pay for fractions of a year in proportion to the time spent in service.

Other Leave Entitlements Under the Law

In addition to annual leave, every employee is entitled to fully paid leave on the holidays and occasions specified by the Regulations. An employee is also entitled to paid leave of not less than 10 days and not more than 15 days, including the Eid al-Adha holiday, to perform Hajj once during their service if they have not previously performed it, provided the employee has completed at least two consecutive years of service with the employer, and the employer may set the number of employees granted this leave each year according to work requirements. An employee is also entitled to 5 days of fully paid leave upon marriage or upon the death of a spouse or an ascendant or descendant, 3 days upon the death of a brother or sister, and 3 days upon the birth of a child, within 7 days of the birth.

Illustrative Example

As a hypothetical example, if an employee has completed 6 consecutive years with the same employer, they are entitled to a minimum of 30 days of paid annual leave for that year, instead of the general minimum of 21 days (illustrative example based on the periods set out in the Law).

Legal References

For questions about your specific situation, you can ask the Saudi Arabia Tax & Legislation Helper on Helpers, or consult a licensed chartered accountant.