Business · Economy · 1 day ago
Saudi employers cannot automatically cancel unused annual leave
In Saudi Arabia, annual leave is a legal right for workers covered by the Labor Law, including Saudi and non-Saudi workers.
The law provides at least 21 days of paid leave each year, rising to at least 30 days after five consecutive years with the same employer.
Employers can schedule leave around work needs, but must give workers at least 30 days’ notice.
Leave can be postponed under conditions set by the law, and longer postponements require the worker’s written agreement.
A worker’s failure to request leave does not mean they have given it up, and an employer cannot automatically cancel an unused balance.
When employment ends, the worker is entitled to payment for eligible unused leave, including leave accrued for part of a year.
The guidance means employers must organize leave rather than erase it.
Saudi employers cannot automatically cancel workers’ unused annual leave, according to a labor law expert quoted by Okaz.
Dr. Khaled Rashad Khayyat said that not requesting leave does not mean a worker has waived the entitlement.
Under Article 109, workers are entitled to at least 21 days of annual leave, rising to at least 30 days after five consecutive years with the same employer.
Employers must enable workers to take leave in the year it is due and give at least 30 days’ notice of its timing.
Article 110 allows certain postponements, while Article 111 provides for compensation for accrued leave when employment ends.
- Who
- Workers covered by Saudi Arabia’s Labor Law and their employers.
- What
- An expert said employers cannot automatically forfeit unused annual leave.
- When
- Okaz published the report on October 10, 2026.
- Where
- Saudi Arabia.
- Why
- Annual leave is a statutory right, and not requesting it does not mean a worker has waived it.
This story does not have two clearly opposing sides.
A worker's failure to request their leave does not mean they are waiving it, nor does it allow for its automatic forfeiture.
This story does not have a timeline yet.
- Article 109 minimum
- 21 days of annual leave per year
- After five consecutive years
- At least 30 days of annual leave
- Notice of leave timing
- At least 30 days in advance
- Article 110 postponement
- Up to 90 days after the year leave is due, if work circumstances require it
- Longer postponement
- Requires the worker’s written approval and cannot extend beyond the end of the following year
Sources
Related news
Riyadh Economic Forum to discuss five studies on Saudi priorities
Riyadh Economic Forum opens with focus on Saudi development priorities
Saudi industrial production fell 23.5% in August
King Salman aid center named among 70 Saudi brands
Saudi Energy Minister Calls Riyadh a Center of Energy Security
Saudi energy minister vows commitment after deadly airport attack
Saudi Arabia developing pipelines to bypass the Strait of Hormuz
UAE education company negotiates controlling stake in Saudi school operator
Costs put pressure on Al-Mutaqaddimah’s profits
Extra's profits decline
Provisions absorb most of Tasheel’s profits
