Probation Period in Saudi Arabia: Key Rules and Compliance Considerations for Employers and Employees

The probation period in Saudi Arabia establishes a legally regulated evaluation phase in which both employers and employees assess mutual suitability while maintaining defined rights and obligations. Proper documentation, fair management, and compliance with Saudi Labor Law help prevent disputes and support a stable long-term employment relationship.

The probation period plays a central role in shaping early employment relationships in Saudi Arabia. It offers both parties an opportunity to evaluate whether the role aligns with expectations, performance requirements, and workplace culture.

As such, Saudi labor legislation outlines detailed rules governing the use of probation, its duration, and the rights and obligations that apply. Understanding these provisions is important for companies operating in the Kingdom and for employees entering the Saudi labor market.

Overview of probation under Saudi Labor Law

Saudi Arabia’s Labor Law requires that any probation period be explicitly documented in the employment contract before the employee begins work. The law limits probation to 90 days, although employers and employees may mutually agree to extend it up to 180 days, provided such an extension is made in writing. This framework ensures that both parties share a clear understanding of expectations and timelines from the outset.

The purpose of probation is twofold: employers gain the ability to assess the worker’s capabilities, cultural fit, and overall suitability, while employees evaluate whether the role, working environment, and contractual commitments align with their expectations. Clarity and documentation are therefore essential to avoid disputes later in the relationship.

Employee rights during the probation period

While probation serves as a testing phase, labor protections remain in force. Employees retain key rights, including:

• Payment of full wages for work performed;
• Access to safe, healthy, and non-discriminatory work conditions; and
• Standard workplace protections and respect for personal dignity.

However, certain entitlements take effect only after probation is completed. For instance, end-of-service benefits and some long-term incentives generally do not accrue until the employee successfully passes the probation phase. For their part, employees are advised to document achievements and maintain records of assigned tasks, as this can support their position should disagreements arise regarding performance or conduct.

Employer responsibilities and compliance requirements

Employers must manage probation in a manner consistent with the Labor Law and avoid practices that could be interpreted as misuse, such as applying probation multiple times for the same role or attempting repeated extensions without consent.

Key employer obligations include:

• Defining probation terms transparently in the employment contract;
• Obtaining written consent for any lawful extension;
• Maintaining clear performance and attendance records;
• Applying consistent and non-discriminatory evaluation criteria.

Proper probation management helps employers mitigate legal risk, improve workforce planning, and identify training needs. It also signals to employees that the company upholds fair employment standards.

Termination rules during probation

Termination initiated by employees

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Employees may resign while on probation, as long as they comply with the notice requirements set out in their contract. Failure to observe notice periods may lead to contractual liability or loss of certain entitlements. Expatriate workers must also follow required administrative procedures on exit or transfer, typically handled through Qiwa and Mudad platforms. Written communication, such as a formal resignation letter, ensures clarity and protects against later disputes.

Termination initiated by employers

Employers may end the employment relationship during probation without granting end-of-service compensation. However, they must adhere to contractual notice obligations and ensure that the decision is supported by documented performance assessments or conduct-related evidence. Once probation is successfully completed, normal termination rules under Saudi Labor Law apply and the contract becomes fully binding.

Best practices for smooth probation management

For employers

• Clearly articulate probation expectations, duration, and evaluation criteria in the employment contract;
• Keep accurate and transparent records of employee performance;
• Avoid any form of discriminatory treatment or arbitrary dismissal; and
• Ensure any extension of probation is properly documented and mutually agreed.

For employees

• Review and understand contract terms, especially notice periods during probation;
• Maintain records of assignments, feedback, and communications with supervisors;
• Follow required procedures for resignation, transfer, or final exit; and
• Seek clarification early when contractual or procedural issues arise.

Effective communication and documentation greatly reduce the risk of misunderstandings and help build a stable employment relationship from the start.

Conclusion

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The probation period in Saudi Arabia is a structured legal mechanism designed to give both employers and employees the opportunity to confirm mutual suitability in a regulated environment. By following the requirements of Saudi Labor Law and adopting transparent practices, companies can strengthen compliance while employees can safeguard their rights and expectations.

A well-managed probation phase lays the foundation for long-term workforce stability and reduces the potential for future disputes.

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