Leave
Article 109 of the Saudi Labour Law:annual leave and the thirty-day threshold
Article 109 gives at least twenty-one days of annual leave a year, rising to at least thirty after five consecutive years with the same employer. Leave is paid in advance, and it cannot be waived or exchanged for cash during service.
- Article 109
- Explanatory guidance
Annual leave is the entitlement employees use most, and it causes many disputes. They are usually about the details: twenty-one days or thirty, from when, whether it can be cashed out, and who sets the dates.
Article 109 answers these in two paragraphs. It says "not less than", so the figures are minimums. An employer can give more leave, but not less.
The text of the article
- 01A worker is entitled, for each year, to annual leave of not less than twenty-one days, increased to not less than thirty days if the worker has spent five consecutive years in the employer's service. The leave is paid in advance.
- 02The worker shall take the leave in the year it accrues and may neither waive it nor receive a cash substitute for it during service. The employer may set the dates according to the needs of work, or grant leave in rotation to keep the work running, and shall notify the worker of the date sufficiently in advance, not less than thirty days.
Status of the text: This article has not been amended; the text below is the original operative text.
The official reference is the Arabic text published by the Bureau of Experts at the Council of Ministers.
The English above is a working translation.
Five consecutive years with the same employer
The increase to thirty days comes after five consecutive years with the same employer. Years worked for other employers do not count. An employee who changes employers starts the count again.
Paid in advance
The text requires leave to be paid in advance, before it starts, and not with the next month's payroll. The wording is clear, but many employers miss it. Payment in advance is part of the employee's entitlement.
No cash substitute during service
Paragraph 2 does not allow money instead of leave during employment, so that employees actually take their rest. Payment for an unused balance when employment ends is a separate right under Article 111.
The employer sets dates, with notice
The employer can set leave dates to suit the work, or give leave in rotation. Either way, it must tell the employee at least thirty days ahead.
What a leave balance needs
- A balance that builds up monthly, not once a year, so the correct entitlement shows on any date.
- A rule that raises the entitlement to thirty days automatically after five consecutive years.
- Leave pay paid before the leave begins.
- Written notice of employer-set leave dates at least thirty days ahead.
- Carry-over and deferral handled within the limits of Article 110.
Common mistakes
Thirty days for five years of experience
The condition is five consecutive years with the same employer, not total career length.
Buying out leave during service
Paragraph 2 does not allow cash instead of leave during employment. Payment for an unused balance is due at the end, under Article 111.
Short notice of leave dates
The notice period is not less than thirty days, so telling an employee a week ahead breaches paragraph 2.
How Barez applies this article
A balance that accrues monthly
Barez builds up the balance monthly from the start date and shows it to the employee when they make a request.
The five-year step is automatic
After five consecutive years, the annual entitlement rises automatically. HR does not have to remember.
Requests follow an approval route
Leave requests go to the right manager, then appear in the team calendar and in payroll. No separate spreadsheet is needed.
Sources
This page is explanatory guidance, not legal advice. In a dispute, rely on the official text and consult the Ministry of Human Resources and Social Development or a licensed lawyer.
Article 109
Frequently asked questions
How many days of annual leave does Saudi labour law give?
Not less than twenty-one days a year, rising to not less than thirty days once the employee completes five consecutive years with the same employer.
Can annual leave be paid out instead of taken?
Not during service, under paragraph 2 of Article 109. At the end of service, the employee is entitled to payment for accrued leave not taken, under Article 111.
Who chooses the leave dates?
The employer, based on the needs of the work or in rotation. The employee must be told in good time, and at least thirty days ahead.
Labour law articles
Continue from here
Annual leave calculator
Work out the balance and the payment for unused days.
Article 111: payment for unused leave
What is owed for a balance never taken.
Leave management
How balances and requests are handled in the system.
Marriage, bereavement, newborn and Hajj leave
Marriage, bereavement, newborn and Hajj leave, outside the annual balance.
Article 74 of the Saudi Labour Law: when an employment contract ends
Article 74 lists every ground on which an employment contract ends, including resignation and bankruptcy rulings, both added in 1446H. The ground decides what the employee is owed, so settle it first.
Article 77Article 77 of the Saudi Labour Law: compensation for unlawful termination
Article 77 sets a fixed formula for compensation: fifteen days' wage per year of service on an indefinite contract, or the wage for the remaining term on a fixed one, and never less than two months' wage.
Article 80Article 80 of the Saudi Labour Law: nine cases for dismissal without gratuity
Article 80 is a narrow exception to employee protection. It lists nine cases that allow termination without gratuity, notice or compensation. In every case, the employee must first be given the chance to object.
Start today
Ready to move your team to Barez?
Reserve your place today, or book a demo and we'll walk you through Barez on your own company.