Internal work regulations are not a formality filed in a drawer. They are the reference relied on for discipline, dismissal and incentives, and where they are missing or weak, every labour dispute turns into guesswork. This article covers who must have them, what they should contain, and how they are approved.
What are internal work regulations?
An internal document governing the company’s relationship with its employees: working hours, leave, violations and penalties, promotions and incentives, and end-of-service procedures — consistent with the Saudi Labour Law and its executive regulations.
Who must have them?
The Labour Law requires an employer whose workforce reaches a certain threshold to prepare work regulations and have them approved by the competent authority. Because the threshold and procedure are updated by ministerial decisions, verify the requirement in force at the time you prepare them. Even smaller companies not covered by the requirement benefit from written regulations that protect both sides.
What should they contain?
- Working hours and rest: timing, breaks, overtime and its conditions.
- Leave: annual, sick, exceptional, and how it is requested and approved.
- Violations and penalties: a clear, graduated table of violation and penalty, with investigation procedures, the right of defence, and statutory deadlines.
- Financial entitlements: wage payment dates, allowances, incentives and their conditions.
- Professional conduct: confidentiality, conflicts of interest, use of company equipment.
- End of service: the cases and procedures, handover of custody, and clearance.
Steps to get them approved
- Drafting: preparing the regulations in line with the Labour Law and the nature of the activity.
- Submission: filing them with the competent authority through the approved channels for approval.
- Notice: displaying them prominently or handing them to employees and documenting acknowledgement.
- Updating: reviewing them whenever the law changes or the activity expands.
Mistakes that strip the regulations of their value
- Copying a ready-made policy from another company without matching it to your activity and structure.
- Penalties harsher than the law allows — these fall away in a dispute.
- Not documenting that the employee was aware of the regulations, making them hard to invoke.
- Applying a penalty without a written investigation or outside the statutory deadlines.
- Provisions that conflict with the employment contracts actually signed.
The relationship between the regulations and the employment contract
The contract governs the individual relationship; the regulations govern the workplace as a whole. Where they conflict, the text more favourable to the employee is usually applied, so consistency between them must be built in from the start.
We prepare and review work regulations and employment contracts as part of employment cases and relations, and keep them updated with any regulatory change under an annual corporate retainer.
No approved work regulations yet?
We prepare and align them with your employment contracts before you need them in a dispute.
This article is general information, not legal advice, and requirements change by decision of the competent authorities.