As the Saudi employment environment has evolved and the new Labor Law amendments entered into force on February 19, 2025, Internal Work Regulations have become more than a formal administrative document. They now serve as a primary internal reference in disputes between employers and employees before the labor courts. At Al-Shatiri & Al-Ghamdi Law Firm, we regularly encounter establishments facing disputes that could have been avoided through properly drafted and approved regulations. This guide explains, step by step, how to prepare legally compliant Internal Work Regulations and obtain approval without rejection by the Ministry.
Work Regulations are a mandatory internal document for every employer with 10 or more employees under Article 12 of the Saudi Labor Law. They are approved electronically through the Qiwa platform. Employers may choose between the Ministry’s standard model or customized regulations reviewed by an approved law firm. The regulations must include provisions governing employment, wages, leave, and disciplinary penalties in accordance with Article 66.
Concerned that gaps in your Internal Work Regulations could be used against your establishment before the labor courts? The team at Al-Shatiri & Al-Ghamdi Law Firm can assist with drafting legally compliant regulations, reviewing them, and obtaining their formal approval through Qiwa as a licensed law firm.
Would you prefer to understand the details first? Continue reading this guide to learn about the relevant legal requirements and procedures before contacting us.
What Are Internal Work Regulations?
Internal Work Regulations (Work Policy / Internal Work Regulations) are a binding internal document that sets out an establishment’s policies governing its relationship with employees. They cover working hours, leave, wages, probation periods, workplace conduct, disciplinary penalties, termination procedures, and dispute resolution. The regulations operate as the establishment’s internal employment framework. Under Article 67 of the Labor Law, an employer may not impose a disciplinary penalty on an employee outside the penalties provided for under the applicable regulations.
The regulations derive their binding legal force from the Labor Law issued by Royal Decree No. M/51 dated 23/8/1426H, as amended, and from the Implementing Regulations of the Labor Law approved by the Ministry of Human Resources and Social Development.
When Are Internal Work Regulations Mandatory?
Under Article 12 of the Labor Law, every employer with 10 or more employees must submit Internal Work Regulations to the Ministry within one year from the effective date of the Law or from the date on which the establishment reaches the applicable employee threshold. The regulations are then approved in the form adopted by the Ministry or after any amendments the Ministry considers necessary, within 60 days from the date of submission.
Difference Between the Standard Model and Customized Regulations
The Ministry of Human Resources provides two options for preparing internal work regulations:
| Element | Standard Model | Customized Regulations |
|---|---|---|
| Preparation | Pre-drafted and pre-approved by the Ministry | Drafted specifically for the establishment |
| Law Firm | Not required | Required through a law firm approved on Qiwa |
| Approval Period | Usually immediate | Requires review by the competent audit department |
| Flexibility | Limited to the available standard templates | High flexibility according to the nature of the business |
| Suitable For | Small and medium-sized establishments with standard business activities | Businesses with specialized activities, such as technology, medical, or industrial companies |
The standard model offers a simpler route for establishments whose operations fit the general templates. Establishments with specialized activities, such as technology companies, businesses operating complex shift systems, or businesses in sectors subject to additional regulation, may benefit from customized regulations that reflect the specific nature of their operations.
Mandatory Provisions in internal work regulations
According to the Ministry’s standard model, the regulations must include at least the following provisions:
| Section | Main Provisions |
|---|---|
| Definitions and General Provisions | Definitions, scope of application, and priority of application. |
| Employment and Probation Period | Employment conditions, probation period of up to 180 days, and the consequences of termination during probation. |
| Wages and Benefits | Components of wages, payment dates, allowances, incentives, and deductions. |
| Working Hours and Leave | Daily and weekly working hours, rest periods, annual leave, sick leave, and emergency leave. |
| Workplace Conduct | Employee obligations, common violations, and confidentiality of information. |
| Disciplinary Penalties | List of violations and penalties, procedures for imposing penalties, and grievance procedures. |
| Occupational Health and Safety | Employer and employee obligations and applicable safety requirements. |
| Termination of Employment | Grounds for termination, notice periods, and end-of-service benefits. |
| Training and Qualification | Training and Saudization programs. |
| Dispute Resolution | Internal grievance procedures and recourse to the labor courts. |
Disciplinary Penalties Under Article 66
Types of Disciplinary Penalties Permitted by Law
Article 66 of the Labor Law limits the disciplinary penalties that an employer may impose on an employee to the following six:
- Warning: A written notice to the employee regarding the violation.
- Fine: A monetary deduction, provided that it does not exceed the equivalent of five days’ wages in one month.
- Withholding or postponing an allowance or increment for a period not exceeding one year.
- Postponement of promotion for a period not exceeding one year.
- Suspension from work without pay.
- Dismissal from employment in the cases specified by the Law.
Requirements for Imposing a Disciplinary Penalty
- Prior notice: The employee must be notified in writing of the alleged violation.
- Opportunity to respond: The employee’s statement and defense must be heard before a decision is made.
- Documentation: The disciplinary procedure must be recorded in the employee’s file.
- Proportionality: The penalty must be proportionate to the violation.
- No double punishment: An employee may not be punished twice for the same violation.
- Time limit: A penalty may not be imposed after 30 days have passed from the date the violation was established.
Sample Schedule of Violations and Penalties
The Ministry requires a clear schedule of violations and penalties to be included in the regulations. The following is an illustrative model that may be adapted:
| Violation | First Instance | Second Instance | Third Instance |
|---|---|---|---|
| Arriving less than 15 minutes late for work | Verbal warning | Written warning | Deduction equivalent to 30 minutes’ wages |
| Absence for one day without justification | Written warning | Deduction of one day’s wages | Deduction of two days’ wages |
| Sleeping during working hours | Written warning | Deduction of one day’s wages | Deduction of three days’ wages |
| Disclosure of the establishment’s confidential information | Immediate dismissal | – | – |
This is an illustrative model only. It must be adapted to the nature of the establishment’s activities without violating the requirements of Article 66.
The 2025 Labor Law Amendments and Their Impact on the Regulations
The amendments to the Labor Law entered into force on February 19, 2025 (20/8/1446H). They amended 38 articles, repealed seven articles, and added two new articles, according to information published by the Ministry of Human Resources and Social Development. The main changes that may require updates to your Internal Work Regulations include:
| Amendment | New Rule | Section Requiring Update |
|---|---|---|
| Probation Period | Maximum period of 180 days instead of 90 days, and it must be expressly stated | Employment and Probation Period |
| Notice for Terminating an Indefinite-Term Contract | 30 days when initiated by the employee and 60 days when initiated by the employer | Termination of Employment |
| Resignation | Must be in writing and is deemed accepted if 30 days pass without a response | Termination of Employment |
| Maternity Leave | 12 weeks with full pay | Leave |
If your regulations were approved before February 2025, they may require updating to reflect these amendments and avoid inconsistencies with the current Labor Law.
Steps for Approving internal work regulations Through Qiwa
The procedure is completed entirely online through the Qiwa platform. The steps differ slightly depending on the model selected.
First Route: Standard Model
- Log in to Qiwa using the employer’s account.
- Select “Work Regulations” from the electronic services menu.
- Select “Issue Internal Work Regulations.”
- Choose the “Standard Model” option.
- Complete the establishment’s general information, including its name, activity, and number of employees.
- Review the prepared regulations and confirm acceptance.
- The regulations are generally issued and approved immediately.
Second Route: Customized Regulations Through an Approved Law Firm
- Log in to Qiwa.
- Select “Work Regulations,” then “Issue Regulations.”
- Select the “Customized Model” option.
- Complete the required information and upload the legally drafted regulations.
- Select an approved law firm from the available list.
- The law firm reviews the regulations from a legal perspective.
- The law firm submits the application to the Ministry.
- The Private Sector Regulations Audit Department reviews the application.
- The regulations are formally approved, or amendments are requested within 60 days.
The Role of an Approved Law Firm in the Approval Process
An approved law firm on the Qiwa platform acts as the legal partner responsible for:
- Drafting the regulations in a manner appropriate to the establishment’s activities.
- Reviewing the provisions to ensure compliance with the Labor Law and its Implementing Regulations.
- Properly incorporating the 2025 amendments.
- Preparing the schedule of violations and penalties in accordance with Article 66.
- Representing the establishment before the audit department if amendments are requested.
- Updating the regulations when new regulatory amendments are introduced.
Through our labor legal consultation service, our team provides a comprehensive review of the regulations before submission and handles their approval through Qiwa as a licensed law firm.
Common Mistakes When Drafting and Approving internal work regulations
Based on our practical work with private-sector establishments in Jeddah, the following mistakes frequently arise:
- Using the standard model for a specialized business whose operations do not fit the general templates.
- Failing to update the regulations after the 2025 amendments, leaving some provisions inconsistent with the current Law.
- Omitting the schedule of violations and penalties or drafting it in general terms that cannot be applied effectively.
- Including penalties not listed under Article 66, which may render them legally invalid.
- Failing to communicate the regulations to employees in the prescribed manner.
- Confusing an individual employment contract with Internal Work Regulations by attempting to regulate the same matters through both documents.
- Ignoring occupational health and safety provisions even though they are mandatory.
Frequently Asked Questions
When Are Internal Work Regulations Mandatory?
They become mandatory for every establishment with 10 or more employees under Article 12 of the Saudi Labor Law. The regulations must be submitted to the Ministry within one year from the date the establishment reaches this threshold.
Is the Standard Model Sufficient for My Establishment?
The standard model may be sufficient for establishments with conventional business activities. Businesses with specialized operations, such as technology, industrial, medical, or restaurant businesses with shift systems, may benefit from customized regulations that reflect the nature of their activities
Which Disciplinary Penalties May an Employer Impose?
The penalties are limited to the six categories stated in Article 66: warning, a fine not exceeding five days’ wages per month, withholding or postponing an allowance, postponing promotion, suspension without pay, and dismissal in the cases specified by the Law.
How Long Does Approval of the Regulations Take?
The standard model is generally approved immediately. Customized regulations require review by the competent audit department, which may take up to 60 days to issue approval or request amendments.
Can the Regulations Be Amended After Approval?
Yes. They may be amended through Qiwa using the same process followed for their initial issuance. The amendments become applicable to employees after they have been formally approved by the Ministry and communicated to employees.
What Is the Difference Between Internal Work Regulations and an Individual Employment Contract?
Internal Work Regulations are a general document that applies to all employees and governs the establishment’s internal employment policies. An employment contract, by contrast, is an individual agreement between an employer and a specific employee that defines the rights and obligations of those two parties.
Internal Work Regulations are more than an administrative document. They provide the legal framework that an establishment relies on in employment disputes and organize employee rights and obligations within the workplace. Following the significant amendments introduced to the Labor Law in 2025, existing regulations should be reviewed and updated where necessary. If your establishment has not yet obtained approval for its regulations, or still relies on an older model that does not reflect the amendments, a legal review can help identify the provisions that require revision before a dispute arises so Contact Us.
Sources:
- Saudi Labor Law – Bureau of Experts at the Council of Ministers
- Implementing Regulations of the Labor Law and Their Annexes – Ministry of Human Resources and Social Development
- Article 66: Disciplinary Penalties – Ministry of Human Resources and Social Development
- Internal Work Regulations Approval Service – Ministry of Human Resources and Social Development
- Official Qiwa Platform
- Guide to the 2025 Labor Law Amendments – Ministry of Human Resources and Social Development
