In the labor market, a trial period in the Saudi labor system is more than just a transitional phase; it's an opportunity for both parties to discover compatibility and harmony. During this period, the employee is given the opportunity to demonstrate their skills and abilities, while the employer gets a chance to assess the employee's suitability for the job. According to Article 53 of the Saudi Labor Law, the trial period must be explicitly stipulated in the employment contract, and its duration must not exceed 180 days. It also gives both parties the right to terminate the contract during this period, unless otherwise stipulated in the contract.
This period is part of labor reforms that aim to improve the work environment and enhance the quality of the workforce, in line with the goals of the Kingdom's Vision 2030. Among the companies contributing to this legal culture are Turki Bin Yousef & Co.which provides specialized legal advice in this field, to help companies and employees understand their rights and obligations during the trial period.
The Trial Period in the Saudi Labor Law and its Legal Basis
In the following, we look at the legal basis that regulates the trial period in the Saudi labor system according to the Saudi Labor Law. The main legal articles and the official bodies responsible for enforcing these laws will be reviewed, as well as some statistics on complaints related to the misuse of the trial period.
Key articles related to the trial period
- The trial period in the Saudi labor law is an essential part of the labor regulations that aim to balance the rights of the employee and the employer.
- According to Article 53 of the Saudi Labor Law, the trial period must be explicitly stipulated in the employment contract and must not exceed 90 days.
- If necessary, this period can be extended to 180 days provided there is a written agreement between the two parties.
- This article makes it clear that the trial period is not an open-ended or undefined period, but is clearly controlled by the Saudi Labor Law.
- Article 54 states that a worker may not be subjected to a trial period more than once with the same employer, unless an exceptional written agreement is reached.
- This provision prevents the repeated exploitation of this period and limits the multiple experiences of workers under the same management.
Responsible Authorities
- The Ministry of Human Resources and Social Development (HRSD) is the official body responsible for issuing regulations and interpretations of the Saudi labor system.
- The ministry is working to provide all the guidance and data that employers and employees need to understand their rights and obligations, especially regarding the trial period in the Saudi labor law.
- Full texts and updates on labor laws can be found on the ministry's website.
- The Labor Disputes Authority also plays a major role in dealing with complaints about the abuse of the probationary period.
- In 2024, about 5,000 complaints were recorded on this topic, which highlights the importance of all parties understanding the nature of their rights and duties during this period to ensure a healthy and balanced work environment.
Duration and conditions of the trial period
Below, we review the details of the trial period in the Saudi labor law, highlighting the specific duration of this period, the conditions of extension, and the most important legal requirements of the contract that regulates it.
Maximum Trial Period in the Saudi Labor Law and How to Extend it
- The trial period is defined in the Saudi labor law as a maximum of 90 days (3 months) as an initial probationary period between the employee and the employer. This period should be clear in the contract from the beginning.
- If an extension is needed, the period can be up to 180 days, provided both parties agree in writing.
- For example, the period can be extended to 120 days if there is a need to complete training or confirm the employee's competence in specific tasks.
- Data from a survey of 500 Saudi companies shows that 40% of companies favor extending the trial period for complex technical positions that require more time to demonstrate competency, such as engineering or IT positions.
Basic terms of the contract
- One of the most important conditions of the trial period in the Saudi labor system is that the contract must be written and registered through the "Qawwa" electronic platform.
- The contract should clearly detail the trial period, including the duration of the trial and the extension mechanism, if any.
- Temporary contracts of less than 90 days or contracts signed with former employees of the same company are not subject to the trial period.
Important legal advice from Turki Bin Yousef & Partners: Verbal contracts that do not contain clear terms should be avoided, as they are not legally binding and may lead to disputes that may disrupt the workflow.
If you are looking for an opportunity to achieve excellence in a cutting-edge work environment, don't miss the opportunity! Contact us today at Turki Bin Yousef & Partners for specialized legal advice that guarantees your rights and ensures an optimal professional experience.
Rights of both parties during the trial period
Now, we discuss the rights of both parties during the trial period in the Saudi Labor Law, which defines the relationship between the employee and the employer, to ensure a fair and equitable work environment for both parties.
Worker's rights
During the trial period, the worker enjoys a number of basic rights that guarantee a respectful and safe work environment:
- Right to full pay: The worker is entitled to receive the wages agreed upon in the employment contract from the first day of the trial period, without any deduction due to the training or probationary period.
- The right to basic benefits: This includes health insurance or any other benefits stipulated in the contract.
- Right to terminate the contract with 24 hours notice: The worker can terminate the contract during the trial period with 24 hours' notice, while maintaining any accrued dues.
Statistically, a 2024 report showed that 25% workers took advantage of these rights to move on to better opportunities, highlighting the importance of these rights in improving workforce mobility.
Employer Rights
On the other hand, the employer also has a number of rights that help them manage the trial period flexibly:
- Free evaluation of a worker's performance: The employer can evaluate the worker's performance during the probationary period without the need for formal reports. He can also dismiss the worker without compensation or notice if he is found to be unsuitable for the job.
- Imposing trial terms: An employer can impose trial conditions, such as mandatory training, provided that these conditions are written and clear in the employment contract.
However, it is important to warn employers not to abuse these rights, as this could lead to fines of up to 10,000 riyals from the Ministry of Labor.
Termination of the contract during the trial period - procedures and consequences
We will now discuss how to terminate the contract during the trial period in the Saudi labor law and the procedures that must be followed by both the employer and the worker, as well as the consequences that may result.
How to terminate the contract by the employer
- The employer has the right to terminate the contract immediately during the trial period in the Saudi labor system without notice or compensation.
- However, it is preferable to have written notice to avoid potential complaints.
- For example, a contract can be terminated after a performance evaluation with the words: "Based on the performance evaluation, the contract is terminated at the end of the day.
- The most common reasons for dismissal include lack of punctuality or a worker's failure to adapt to the company culture.
- Statistically, 60% of disconnections occurred in the fourth week of the trial period.
Termination of the contract by the worker and its effects
- The worker has the right to terminate the contract with only 24 hours' notice, while retaining entitlements such as accrued wages and unused vacation time.
- Although resignation may affect professional reputation if the situation is not managed well, it does not preclude future employment.
Important advice: The worker must document the reasons for resignation as a legal document in the event of a dispute before the arbitration committees.
Practical tips for a successful trial period
Below, we offer a range of practical tips that can help both new workers and employers succeed during the trial period in the Saudi labor system and make the most of it.
Tips for new employees
- Focus on rapid learning and effective communication: To succeed in a trial period, a worker must be a quick learner and demonstrate positive interaction with the team. Setting a goal to achieve 80% of weekly goals is a great way to demonstrate competency.
- Ask for periodic evaluation and review: It is essential for the worker to request an evaluation and review from the manager on a regular basis to adjust and improve performance before the end of the period. This helps increase the chances of success.
Practical example: Participate in team meetings regularly to understand the organizational culture, and always be ready to learn and grow.
Tips for Employers
- Design a clear training program: The training program should contain measurable performance indicators (KPIs) that help determine the worker's progress during the trial period.
- Document assessments to avoid lawsuits: Legal disputes related to subjective evaluations are on the rise; employers must document evaluations accurately. In 2024, 20% of disputes were related to this topic.
Practical proposal: Using tools such as satisfaction surveys to measure the mutual compatibility between the worker and the company helps avoid future conflicts.
faqs
What are the employee's rights during the trial period?
The employee is entitled to the agreed wage, health insurance, and other benefits. They also have the right to terminate the contract with 24 hours' notice and maintain their entitlements.
How long is the trial period in Saudi Arabia?
The duration of the trial period in the Saudi labor system is a maximum of 90 days, which can be extended to 180 days with the agreement of both parties.
How long is the trial period in the Labor Law?
According to the Saudi labor law, the trial period should not exceed 90 days, and can be extended for a single period not exceeding 180 days.
What is Article 77 of the Saudi Labor Law?
Article 77 of the Saudi Labor Law concerns the rights of the employee upon termination of the contract, as the worker is entitled to compensation if the contract is terminated unjustifiably.
In summary, the trial period in the Saudi labor system is a crucial tool to ensure compatibility between the employee and the employer. However, the success of this period requires transparency and strictly following the legal procedures to avoid fines or disputes. It is essential that the contract is clear and includes all the details of the trial period, including duration, extension terms, and the rights and obligations of both parties. To avoid common issues such as subjective evaluation or unclear contract terms, be sure to document all procedures and agreements through Qawwa's platform or consult a specialized lawyer to ensure your contract is safe and legal. If you are looking for specialized legal advice to ensure your rights during your trial period in the Saudi labor system, do not hesitate to contact Turki Bin Yousef & Partners. We are here to help you with the right guidance and ensure that your contract is in line with all laws and regulations.
