Limited vs Unlimited Contracts (Saudi Arabia) (2026 Legal Guide) — Rules & Requirements
About this article
Sourced from Omani royal decrees, ministerial decisions, and the Basic Statute of the State. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
Saudi Arabia allows both limited (fixed-term) and unlimited contracts. Expatriates are usually on limited contracts (Iqama-bound). Saudi nationals are more often on unlimited contracts. The biggest practical difference: Article 85 resignation scaling applies to unlimited contracts (1/3 of award for 2-5 years, 2/3 for 5-10, full for 10+).
When does it apply?
- Under the Saudi Labour Law (Royal Decree M/51 as amended by M/44).
- Contract is in Arabic (Article 9 — English copies are convenience translations only).
- Qiwa contract registration matches what you signed.
What should you do?
- Verify contract type via Qiwa — registered terms control.
- For unlimited contracts on resignation, apply Article 85 scaling in your gratuity calculation.
- Watch the Article 55 renewal trigger — once-renewed fixed-term may convert to unlimited.
- If contract type is misrepresented, file with MHRSD Friendly Settlement.
What should you NOT do?
- Don't ignore Article 55 conversion triggers — a renewed fixed-term may have already become unlimited.
- Don't sign a contract in English alone — Arabic controls under Article 9.
- Don't apply Article 85 scaling to limited-contract completion — scaling applies only to resignation from unlimited contracts.
About Workers' Rights in Oman
Your job in the Saudi private sector is governed by the Labour Law (Royal Decree No. M/51 of 2005). Most of the system runs on the Qiwa platform — contracts, transfers, and disputes. Salaries flow through the Wage Protection System via Mudad. Saudi nationals have a SAR 4,000 minimum wage; there is no statutory floor for expats. Since the Labour Reform Initiative in 2021, you can change employers and request exit/re-entry through Absher without sponsor approval. GOSI handles social insurance, including workplace-injury cover for expats.
Common Questions
What is the limited vs unlimited contracts (saudi arabia) right in Oman?
Saudi Arabia allows both limited (fixed-term) and unlimited contracts. Expatriates are usually on limited contracts (Iqama-bound). Saudi nationals are more often on unlimited contracts. The biggest practical difference: Article 85 resignation scaling applies to unlimited contracts (1/3 of award for 2-5 years, 2/3 for 5-10, full for 10+).
When does it apply — limited vs unlimited contracts (saudi arabia)?
Under the Saudi Labour Law (Royal Decree M/51 as amended by M/44).Contract is in Arabic (Article 9 — English copies are convenience translations only).Qiwa contract registration matches what you signed.
What should you do — limited vs unlimited contracts (saudi arabia)?
Verify contract type via Qiwa — registered terms control.For unlimited contracts on resignation, apply Article 85 scaling in your gratuity calculation.Watch the Article 55 renewal trigger — once-renewed fixed-term may convert to unlimited.If contract type is misrepresented, file with MHRSD Friendly Settlement.
What should you NOT do — limited vs unlimited contracts (saudi arabia)?
Don't ignore Article 55 conversion triggers — a renewed fixed-term may have already become unlimited.Don't sign a contract in English alone — Arabic controls under Article 9.Don't apply Article 85 scaling to limited-contract completion — scaling applies only to resignation from unlimited contracts.