Probation is a period in which each party verifies the other's suitability: the employer the employee's competence, the employee the fit of the job and its environment. Either may terminate during it without observing the notice period and without compensation for termination.
The first condition here is that probation is never presumed. It exists only where the employment contract states it expressly with a defined duration. A contract silent on it has no probation at all, and termination is treated as ordinary termination with all its consequences.
This detail is where most practical errors occur. An establishment terminates an employee in their second month believing they are on probation, then discovers the contract never provided for it, and the termination becomes termination without lawful cause with everything that entails. Keeping contract data in an HR system prevents the error at source.
Before you rely on this guide: This content is general information and is not binding legal advice, rules vary with contract type and the circumstances of each case, and provisions may have changed since the last-updated date shown above, so before any decision affecting an employee, check the article in its official source or consult a specialist.
Duration and extension
Article 53 provides that where an employee is subject to probation, this must be stated expressly in the contract with its duration clearly defined, and the total may not in any case exceed one hundred and eighty days.
The Regulations allow the probation period to be split into several periods within that ceiling, so it need not be one continuous stretch. An employee whose full probation has expired and who continues working is confirmed, and cannot be returned to probation retroactively.
Article 53 refers to the Regulations for which leave does not count towards the period, because probation is a period of actual testing rather than mere passage of time.
No second probation with the same employer
An employee may not be placed on more than one probation period with the same employer. Once probation is completed and the employee confirmed, they are not returned to it.
Two cases are excepted: the parties agreeing in writing to a further probation in a profession different from the first, or the employee's service having ended and a substantial period having passed before their return.
The purpose of the restriction is clear: to prevent renewing probation as a way of keeping an employee without job security.
Terminating during probation
Either party may terminate the contract during probation without observing a notice period and without compensation for termination, and the provision in force is unqualified as to both.
But the right to terminate does not mean release from every obligation. Pay for the days actually worked is due in full, and the cash value of the leave balance accrued over the period worked is due as well, and neither lapses on termination during probation.
End-of-service gratuity is not payable in practice over so short a period, since the resignation regime requires two years and the period here does not reach that.
It is prudent to document the reason for termination even though the law does not require it to be stated, because documentation protects the establishment from a claim of discrimination or arbitrary dismissal.
What the employee is owed on termination
- 1Pay for days actually worked up to the termination date, in full and without reduction.
- 2A cash allowance for the annual-leave balance accrued pro-rata over the period worked.
- 3Any allowances or entitlements the contract provides for the period elapsed.
- 4A certificate of experience stating the period of work and the profession, which is a right rather than a favour.
Effect on residency and GOSI
An employee on probation is a full employee for registration purposes: they are registered with GOSI from the start of work and covered by the same statutory obligations as any other employee of the establishment.
Delaying registration on the grounds that they are still on probation is therefore a breach in its own right, and the possibility that they may not continue does not excuse it.
Managing it in practice
Probation loses its value if it passes without assessment. An establishment that reaches the last day of the period and then decides on the spot has tested nothing; it has merely waited.
Proper management means every employee on probation has published criteria they are measured against, an assessment at the midpoint allowing correction before it is too late, and a documented decision before the period expires rather than after.
Most important in practice is advance notice. The probation end date must trigger a reminder well in advance, because letting it pass without a decision means automatic confirmation and the loss of the right to terminate on simplified terms.
Official sources
Article numbers cited refer to the Saudi Labor Law and its Executive Regulations. Rules and rates are subject to change, so refer to the official source whenever in doubt.
- Saudi Labor Law, Bureau of Experts at the Council of Ministers
- Ministry of Human Resources and Social Development
- General Organization for Social Insurance
This content is general information and is not binding legal advice, rules vary with contract type and the circumstances of each case, and provisions may have changed since the last-updated date shown above, so before any decision affecting an employee, check the article in its official source or consult a specialist.