The key numbers of Saudi business compliance: thresholds, periods, and rates in one updated reference

Probation: one hundred and eighty days at most

• The maximum probation period is one hundred and eighty days, including any extension; anything beyond it has no effect.
• An extension is valid only by written agreement between the parties; a unilateral extension by the employer has no effect.
• Probation does not apply unless it is expressly stated in writing in the contract.
• Ordinary weekly rest days count within the period; the two Eid holidays, Hajj leave, and sick leave agreed not to be counted are excluded.

The full detail is in the Sighaty probation guide, with the probation annex wording in template E-06.

The end-of-service award: half a month, then a full month

• The rule in Article 84 of the Labor Law: half a month's wage for each of the first five years, a full month's wage for each year after them, and fractions of a year in proportion to time actually worked.
• The calculation uses the last wage: the basic salary plus fixed, regular allowances such as housing and transport granted permanently, excluding occasional bonuses.
• On resignation, the Article 85 proportions apply to the fully computed award: nothing under two years, one third from two up to five years, two thirds above five and below ten, and the full award at ten years and beyond.
• Expiry of a fixed-term contract without renewal, or employer termination without a statutory cause, earns the full award.

Step-by-step worked examples are in the end-of-service calculation guide, and the free Sighaty End-of-Service Calculator computes it for you directly.

Saudization counting in Nitaqat: four thousand riyals for a full count

• A Saudi employee earning four thousand riyals or more counts as a full worker in the Saudization ratio.
• At a wage between three and four thousand riyals, they count as half a worker.
• Below three thousand riyals, they do not enter the ratio even though they remain employed.
• A Saudi employee with a disability counts as four workers when the wage and GOSI registration conditions are met; verifying the current value before relying on it is advisable.
• The employee must stay registered with GOSI for a meaningful period before counting, usually not less than three months; checking the period in force at counting time is safest.

The colored bands and the effect of each are explained in the Sighaty Nitaqat counting guide.

The online store: seven days to withdraw from a distance sale

• The consumer may withdraw from a distance sale within seven days without a defect being required, as long as the product is in its original condition and outside the disclosed exclusions.
• Specific categories may be excluded, such as delivered digital content, customized goods, perishables, and health and hygiene items, provided they are clearly disclosed before the purchase is completed.
• The E-Commerce Law and its regulation require disclosing the returns and refund policy before the order is completed; its absence exposes the store to liability.

The full conditions and exclusions are in the returns policy guide, with the ready template D-05.

The commercial register: no more renewal, an annual confirmation instead

• After the new Commercial Register Law of 2025, the register no longer expires or gets renewed; it is permanent and requires an annual confirmation of its data during the anniversary period of its issuance.
• Missing the confirmation brings a financial fine and can disrupt register-linked government transactions, and a long-continued breach can ultimately lead to cancellation of the register.
• Your date is tied to your register's issuance date: check it and add it to your compliance calendar so it reminds you every year.

The detail is in the Sighaty annual CR confirmation guide.

Frequently asked questions