๐Ÿ‡ธ๐Ÿ‡ฆ Middle East & Africa

Saudi Arabia

An ILO EPLex composite of 0.373 places Saudi Arabia among moderate-protection jurisdictions on the 0-1 scale.

ILO EPLex OECD EPL
0.373 ILO EPLex composite (0โ€“1)
OECD EPL โ†’

Saudi Arabia's statutory protection against unfair dismissal is moderate - an ILO EPLex composite of 0.373 on the 0โ€“1 scale, more flexible than 68% of the 95 rated countries. Data is compiled from 2 official sources (ILO EPLex, OECD EPL), covering statutory notice periods, severance pay, and dismissal procedures.

Saudi Arabia - the verdict

Saudi Arabia's statutory protection against unfair dismissal is moderate - an ILO EPLex composite of 0.373 on the 0โ€“1 scale, more flexible than 68% of the 95 rated countries.

0.373
ILO EPLex composite (0โ€“1)
68th
percentile, flexibility
1.37/6
OECD EPL strictness

Sources: ILO EPLex ยท OECD EPL. Higher = stronger statutory protection.

How we calculate this percentile

We sort every country with a published ILO EPLex composite score (95 in total) from lowest to highest. Saudi Arabia's position in that sorted list gives its percentile: round((countries at or below its score รท 95) ร— 100). A higher percentile means stronger statutory dismissal protection relative to the full 95-country set, not a comparison to any single peer country.

Saudi Arabia is a low-protection labor market by OECD standards, scoring 1.37/6.0 on the overall EPL index, well below the OECD average of about 2.0. The ILO EPLex composite (2017) stands at 0.373/1.0. Statutory notice rules apply across 7 tenure tiers.

What the Data Shows for Saudi Arabia

Middle East & Africa. Covered by 2/3 tracked datasets. The most recent ILO EPLex composite score is 0.373 out of 1.0 (2017), summarizing statutory termination rules into a single index. The OECD EPL overall strictness index is 1.37/6.0, where higher values indicate stricter rules on individual and collective dismissal.

Statutory notice periods in Saudi Arabia scale with tenure across 7 tiers, reaching 1 month at 20 years of service. Severance pay can reach 17.5 months of salary at 20 years, while redundancy-specific pay is 17.5 months. The maximum probation period allowed by law is 6 months, defining how long employers can assess workers under reduced protection.

The EPLex redress/reinstatement sub-indicator is 0.625/1.0, reflecting how strong remedies are when a dismissal is ruled unlawful. Historically, Saudi Arabia's OECD EPL score moved from 1.37 in 2008 to 1.37 in 2012, showing the direction of reform over time. 6 peer comparisons below.

How to read the three measurement scales

These figures draw on three different measurement traditions, so read each one on its own terms before comparing across countries. The ILO EPLex composite condenses statutory termination rules into a single index from zero to one, where higher numbers mean stronger legal protection against dismissal. The World Bank Business Ready 2025 labor score runs from zero to one hundred and blends the quality of regulation with how well public services and dispute processes actually work in practice. The OECD employment protection index uses a zero to six scale and only covers member economies, but it offers the longest historical series, which makes it the better choice for tracking reform over time. A country can score strictly on paper yet still process dismissals quickly, so always weigh the statutory index against the practical estimates. Where a country appears in fewer than all three datasets, treat the missing measures as not yet collected rather than as a sign of weak protection, and revisit this page when new releases are published because indicators can shift year over year.

Data Sources

2

ILO / WB / OECD coverage

Region

Middle East & Africa

Geographic grouping

Latest Year

2017

Most recent indicator update

Saudi Arabia vs. every rated country

Where Saudi Arabia's ILO EPLex composite sits among all 95 countries with a composite score.

Saudi Arabia - ILO EPLex composite

Worker-protection strength against unfair dismissal (0โ€“1 scale)

0.37 Top 68% higher than 32% of 95 rated countries

0.00โ€“0.10: 0 rated countries (0%). Below this entry. 0.10โ€“0.20: 1 rated countries (1%). Below this entry. 0.20โ€“0.30: 8 rated countries (8%). Below this entry. 0.30โ€“0.40: 26 rated countries (27%). This entry sits in this band. 0.40โ€“0.50: 39 rated countries (41%). Above this entry. 0.50โ€“0.60: 15 rated countries (16%). Above this entry. 0.60โ€“0.70: 6 rated countries (6%). Above this entry. 0.70โ€“0.80: 0 rated countries (0%). Above this entry. 0.80โ€“0.90: 0 rated countries (0%). Above this entry. 0.90โ€“1.00: 0 rated countries (0%). Above this entry. Saudi Arabia 0.00 1.00 EPLex composite score, bucketed by value

Each bar is a band; taller bars hold more rated countries. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count, share, and where it sits relative to this entry.

Source ILO EPLex composite (0โ€“1 scale) ยท 2017

Saudi Arabia EPLex composite 37.3%

Out of a 1.0 maximum. Higher = stronger statutory protection against dismissal.

ILO EPLex (2017)
0.373
out of 1.0 ยท Rank #66
B-READY 2025
-
No data available
OECD EPL
1.37
out of 6.0 ยท Rank #68

ILO EPLex

Termination Protection Breakdown (2017)

Prohibited Grounds for Dismissal
0.000
Probation Period
0.760
Procedural Requirements
0.250
Notice Periods
0.207
Severance Pay
0.165
Redundancy Pay
0.225
Redress / Reinstatement
0.625

Scale: 0 = no protection · 1 = maximum protection. Source: ILO EPLex 2017.

Max probation period: 6 months

Notice Periods by Tenure

Tenure Notice Period
6 months 1 month
9 months 1 month
2 years 1 month
4 years 1 month
5 years 1 month
10 years 1 month
20 years 1 month

Source: ILO EPLex ILO EPLex Notice period is the legally mandated advance notice before termination

Severance and Redundancy Pay by Tenure

Tenure Severance Redundancy
6 months 0.25 mo 0.25 mo
9 months 0.33 mo 0.33 mo
2 years 1 mo 1 mo
4 years 2 mo 2 mo
5 years 2.5 mo 2.5 mo
10 years 7.5 mo 7.5 mo
20 years 17.5 mo 17.5 mo

Values in salary-months. Source: ILO EPLex. Severance = individual dismissal. Redundancy = collective/economic dismissal.



OECD EPL

Historical Protection Score

Year Overall Score Visual
2008 1.37
2009 1.37
2010 1.37
2011 1.37
2012 1.37

Scale: 0-6 (higher = more protective). Source: OECD Employment Protection Legislation database.

Frequently Asked Questions

What are the employment protections in Saudi Arabia?

ILO EPLex termination protection composite score: 0.373/1.0 (2017); OECD EPL overall: 1.37/6.0; 7 notice period tiers defined by law; 7 severance/redundancy pay tiers. (2 sources.)

How does Saudi Arabia compare to the OECD average?

OECD EPL 1.37/6.0 (below the ~2.3 average).

What notice period and severance pay does Saudi Arabia require?

up to 1 month notice (20 years); severance up to 17.5 months (20 years).

What data sources cover Saudi Arabia's employment laws?

2 sources: ILO EPLex; OECD EPL.

How strict are dismissal protections in Saudi Arabia?

EPLex 2017: relatively flexible (0.373/1.0); max probation 6mo.

How does Saudi Arabia handle labor disputes?

EPLex redress indicator 0.625/1.0.

What to do with this

Use Saudi Arabia's scores as a comparison benchmark, not legal advice.

  • Saudi Arabia sits below 68% of rated countries on statutory dismissal protection (ILO EPLex 0.373/1.0) - see exactly where it lands among all 95. View the rankings
  • The three indices measure different things on different scales, compare Saudi Arabia side by side with another country before drawing a conclusion. Compare Saudi Arabia
  • Read Saudi Arabia against its regional peers, the Middle East & Africa averages reveal the structural pattern. Middle East & Africa overview

These indices reflect the law as written, not how it is enforced, recent amendments, or the facts of any individual case. For a real decision, confirm the current statute and consult a qualified employment lawyer, see our disclaimer.

Related

Data sourced from official OECD, ILO, and World Bank employment-protection datasets. See our methodology for details. Retrieved and formatted by PlainEmploy Editorial

Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from OECD, ILO, and World Bank labor market databases. Consult a qualified professional before making decisions based on this data.

Primary sources: ILO EPLex, World Bank B-READY, OECD EPL.

PlainEmploy is rendered directly from the OECD Employment Protection Legislation indicators, the ILO EPLex database, and the World Bank B-READY labor pillar, no number is typed in by an editor. This country's composite scores and comparisons are computed directly from the underlying OECD/EPLex/B-READY tables, no figure is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of 2026-07-06.