Saudi Arabia is one of the fastest-growing employment markets in the Middle East, driven by Vision 2030, rapid digital transformation, and large-scale investments across technology, construction, energy, healthcare, and professional services. As global companies expand into the Kingdom, many underestimate the legal sensitivity of the probation period under Saudi labour law.
While probation is legally permitted in Saudi Arabia, it is explicitly regulated under the Saudi Labor Law and closely monitored by the Ministry of Human Resources and Social Development (MHRSD). Probation does not suspend employee rights, nor does it allow unrestricted termination. Poorly managed probation often results in labor disputes, compensation claims, Saudization compliance issues, and reputational risk.
This 2026 guide explains how the probation period works in Saudi Arabia, employee rights during probation, termination rules, notice requirements, and how using an Employer of Record (EOR) in Saudi Arabia helps global companies hire compliantly without setting up a local entity.
What Is a Probation Period Under Saudi Labour Law?
Saudi Labour Law expressly recognizes probation as a legitimate part of the employment relationship. However, it places clear limits on its duration and use to prevent misuse by employers.
Probation in Saudi Arabia is intended to allow employers to assess employee suitability while still respecting fundamental employment protections. It is not a loophole to bypass termination rules or employee entitlements.
Legal Nature of Probation in Saudi Arabia
Under Saudi Labour Law:
- Probation must be explicitly stated in the employment contract
- Each employee may be placed on probation only once by the same employer
- The probation period cannot exceed 90 days, excluding public holidays and sick leave
- Employees are legally employed from day one
Probation provides limited flexibility but remains a regulated employment phase.
Is Probation Mandatory Under Saudi Labour Laws?
Probation is not mandatory in Saudi Arabia. Employers may choose to:
- Include a probation period, or
- Confirm employment immediately
However:
- If probation is not stated in the contract, termination rules for confirmed employees apply
- Employers lose the flexibility of probation-specific termination provisions
- Ambiguous probation clauses are interpreted in favor of employees
For global employers, clear contract drafting is essential.
Typical Probation Period Duration in Saudi Arabia
Saudi Labour Law is very specific about probation duration, leaving little room for interpretation.
Standard Probation Length Across Saudi Arabia
Key rules include:
- Maximum probation period: 90 days
- Probation may be extended by written agreement, but must not exceed 180 days in total
- Public holidays and sick leave are excluded from the probation calculation
Once probation ends, the employee is automatically considered confirmed.
Salary and Benefits During Probation
During probation:
- Employees must receive the full agreed salary
- Wage reductions during probation are not permitted
- GOSI (social insurance) registration is mandatory
- Contractual benefits apply unless explicitly excluded
Probation cannot be used to reduce employment costs.
Employee Rights During the Probation Period in Saudi Arabia
A common misconception is that probationary employees have fewer rights. In Saudi Arabia, employee protections apply from the first day of employment, regardless of probation status.
Statutory Rights That Apply During Probation
Employees on probation are entitled to:
- Timely payment of wages
- Safe and dignified working conditions
- Protection from unlawful termination
- GOSI registration and coverage
- Non-discriminatory treatment
Saudi labour authorities actively enforce these rights.
Probation and Employment Contract Validity
Even during probation:
- The employment contract is fully enforceable
- Employees may file labor complaints
- Arbitrary or retaliatory termination may result in penalties
Probation does not weaken contractual or statutory protections.
Termination During the Probation Period in Saudi Arabia
Termination during probation is permitted but must strictly follow Saudi labour law provisions.
Can Employers Terminate During Probation in Saudi Arabia?
Yes, employers may terminate an employee during probation if:
- Termination is clearly permitted under the contract
- No compensation is required unless contractually stated
- Termination is not discriminatory or unlawful
However, documentation and proper process remain critical.
Employee-Initiated Termination During Probation
If an employee resigns during probation:
- They are generally not entitled to end-of-service benefits
- Notice requirements depend on contract terms
- Employers cannot impose penalties beyond legal limits
Contract clarity is essential to avoid disputes.
Common Employer Mistakes That Lead to Disputes
Frequent errors include:
- No written probation clause
- Extending probation beyond legal limits
- Delayed GOSI registration
- Poor documentation of termination decisions
Such mistakes often lead to labor court claims.
Managing Performance During the Probation Period in Saudi Arabia
While Saudi labour law does not require formal performance improvement plans, structured probation management significantly reduces legal and operational risk.
Using Probation as a Performance Evaluation Period
Best-practice employers:
- Clearly define job expectations at onboarding
- Monitor performance against role requirements
- Provide feedback during probation
- Document performance-related discussions
This approach supports defensible termination decisions if needed.
Confirming or Ending Employment After Probation
At the end of probation:
- Employment automatically continues unless terminated
- Employers should confirm employment status in writing
- Post-probation termination triggers standard notice and protection rules
Clear communication prevents misunderstandings.
Probation Risks for Global Companies Hiring in Saudi Arabia
Saudi Arabia’s labour framework presents unique challenges for international employers unfamiliar with local regulations.
Why International Employers Struggle With Saudi Probation Rules
Common challenges include:
- Misunderstanding probation duration limits
- Ignoring Saudization (Nitaqat) implications
- Inadequate Arabic-language documentation
- Lack of local HR and legal expertise
These gaps often result in compliance penalties.
How Employer of Record (EOR) Models Reduce Probation Risk in Saudi Arabia
An Employer of Record model allows global companies to hire employees in Saudi Arabia while transferring employment compliance responsibilities to a local expert.
Using an EOR in Saudi Arabia enables companies to:
- Hire without setting up a Saudi legal entity
- Use compliant Arabic–English employment contracts
- Structure lawful probation clauses
- Manage GOSI and Saudization compliance
- Execute compliant terminations
EOR services significantly reduce legal and operational risk.
How Asanify Helps Manage Probation Periods in Saudi Arabia
Asanify provides end-to-end Employer of Record services in Saudi Arabia, supporting global companies across hiring, probation, and compliance.
With Asanify, companies can:
- Hire in Saudi Arabia without entity registration
- Use legally vetted, Saudi-compliant contracts
- Manage probation documentation
- Ensure compliant termination processes
- Handle payroll, GOSI, and Saudization requirements
- Stay aligned with Saudi labour law updates
Asanify enables confident, compliant hiring in the Kingdom.
Conclusion
Probation in Saudi Arabia is a legally regulated employment phase with strict duration limits and employee protections. It is not a low-risk trial period. Employers must follow statutory timelines, document decisions carefully, and manage social insurance and Saudization obligations. Improper handling of probation can lead to labor disputes, penalties, or automatic confirmation of employment status. Partnering with an EOR like Asanify allows global companies to hire in Saudi Arabia safely and compliantly, with local expertise covering contracts, GOSI registration, probation monitoring, and lawful terminations where required.
Frequently Asked Questions
What is the probation period in Saudi Arabia under labour law?
It is a legally defined trial period of up to 90 days under Saudi Labour Law.
How long is a probation period in Saudi Arabia?
The standard probation period is 90 days, extendable up to 180 days by written agreement.
Can an employee be terminated during probation in Saudi Arabia?
Yes, if termination is permitted under the contract and complies with labour law.
Do probationary employees have rights in Saudi Arabia?
Yes. Employment rights apply from day one, including wage and GOSI protections.
Is probation mandatory in Saudi Arabia?
No. Probation is optional but must be stated in the contract if used.
Is GOSI registration required during probation?
Yes. GOSI registration is mandatory from the start of employment.
How does an Employer of Record manage probation in Saudi Arabia?
An EOR ensures compliant contracts, GOSI and Saudization compliance, and lawful termination.
Why should global companies use EOR services in Saudi Arabia?
To avoid entity setup, manage Saudization requirements, and reduce labour law risk.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.