Article 26 of the Saudi Labor Law
المادة 26 من نظام العمل · الباب الثاني: تنظيم عمليات التوظيف
Article 26 requires every establishment, whatever its size or activity, to attract, hire and train Saudis, with Saudis making up at least 75% of workers, which the Minister may temporarily reduce.
Official text (Arabic)
This article has not been amended since the law was issued.
1- على جميع المنشآت في مختلف أنشطتها، وأيًّا كان عدد العاملين فيها، العمل على استقطاب السعوديين وتوظيفهم، وتوفير وسائل استمرارهم في العمل، وإتاحة الفرصة المناسبة لهم لإثبات صلاحيتهم للعمل عن طريق توجيههم وتدريبهم وتأهيلهم للأعمال الموكولة إليهم.
2- يجب ألا تقل نسبة العمال السعوديين الذين يستخدمهم صاحب العمل عن 75% من مجموع عماله. وللوزير في حالة عدم توافر الكفايات الفنية أو المؤهلات الدراسية، أو تعذر إشغال الوظائف بالمواطنين أن يخفض هذه النسبة مؤقتًا.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 26 explained in plain English
Article 26 of the Labor Law sets the basic rule on localization of jobs, and consists of two obligations on the employer:
First: a general duty on all establishments. The first paragraph provides that the obligation covers all establishments in their various activities, whatever the number of their workers, so a small establishment with two workers is subject to it just as a large company is. This duty has four elements:
- Working to attract and hire Saudis.
- Providing the means that help them continue in their work.
- Giving them a suitable opportunity to prove their fitness for the work.
- Guiding, training and qualifying them for the work entrusted to them.
In practice this means it is not enough for the employer to appoint a Saudi and then leave them without guidance; the Law asks the employer to create the conditions that enable them to succeed and stay in their job.
Second: a specified ratio. The second paragraph requires that the ratio of Saudi workers employed by the employer not be less than 75% of its total workers. However, the article allows the Minister to temporarily reduce this ratio in specified cases, which are:
- The required technical competencies are not available.
- The required educational qualifications are not available.
- It is not possible to fill the jobs with citizens.
Note that the reduction is temporary and lies with the Minister alone; the employer cannot decide it on its own.
How does the article relate to those around it? Article 25 complements this obligation by requiring the employer to send periodic data to the Ministry on vacant jobs and the names and nationalities of its workers, which allows the Ministry to follow compliance with the ratio. Article 27 also gives the Minister the power to require employers in certain activities and regions to hire only through registered employment channels, which is an additional tool for achieving the aim of Article 26.
If an employer wishes to know how to request a reduction of the ratio or to assess the position of its establishment, it is advisable to consult a lawyer specialized in labor cases.
Practical example
A contracting company in Dammam has 40 workers, of whom 25 are Saudi and 15 are non-Saudi, so the share of Saudis is 62.5%, which is below the 75% minimum that Article 26 requires. The company must work to raise the ratio by attracting and training Saudis and providing what helps them continue in their work. If some of its technical jobs require competencies that were not available among the Saudi applicants, the article makes a temporary reduction of the ratio a matter for the Minister, and the company may not treat itself as exempt on its own.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Active contributorFrequently asked questions about Article 26 of the Saudi Labor Law
What percentage of Saudis is required in an establishment under the Labor Law?
Article 26 provides that the ratio of Saudi workers must not be less than 75% of the employer's total workers, unless the Minister issues a decision to reduce it temporarily.
Does the localization ratio apply to small establishments?
Yes. The article addresses all establishments in their various activities whatever the number of their workers, and does not exempt establishments by size.
When may the 75% ratio be reduced?
Only the Minister may reduce it temporarily, where the technical competencies or educational qualifications are not available, or it is not possible to fill the jobs with citizens.
Besides hiring, what are the employer's duties toward a Saudi employee?
The article requires the employer to provide the means for them to continue in their work, give them a suitable opportunity to prove their fitness, and guide, train and qualify them for the work entrusted to them.
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Article 11 requires anyone entrusted with the employer's original work, or part of it, to give his own workers all the rights and benefits that the original employer gives his workers.
إذا عهد صاحب العمل لأي شخص طبيعي أو معنوي القيام بعمل من أعماله الأصلية، أو جزء منها؛ وجب على الأخير أن يعطي عماله جميع الحقوق والمزايا التي يعطيها صاحب العمل ا
- Article 11 bisAmended (1436 AH)
The article gives the Minister the power to take measures that ensure better labor market performance and regulate the movement of labor, without prejudice to the provisions of the law and related laws.
مع عدم الإخلال بأحكام هذا النظام والأنظمة ذات العلاقة؛ للوزير أن يتخذ الإجراءات التي من شأنها أن تكفل تحسين أداء سوق العمل، وتنظيم حركة انتقال الأيدي العاملة
- Article 21
Article 21 requires the Minister to coordinate with the relevant bodies whenever needed in order to implement the provisions of the Labor Law.
على الوزير- في سبيل تنفيذ أحكام هذا النظام- التنسيق مع الجهات ذات العلاقة كلما اقتضى الأمر ذلك.
- Article 22Amended by M/44
Article 22 requires the Ministry to provide free employment channels that connect workers and employers, collect labor market data, register job seekers and guide them toward suitable training.
توفر الوزارة قنوات للتوظيف دون مقابل، تقوم بما يأتي: 1 - مساعدة العمال في الحصول على الأعمال المناسبة، ومساعدة أصحاب الأعمال في إيجاد العمال المناسبين. 2 - جمع
- Article 23Amended by M/44
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لكل مواطن في سن العمل قادر على العمل وراغب فيه أن يطلب قيد اسمه في قنوات التوظيف، مع بيان تاريخ مولده ومؤهلاته وأعماله السابقة ورغباته وعنوانه.
- Article 24Amended by M/44
Article 24 refers to the Regulations the rules of operation, procedures, forms of records and notices, and occupational classification tables of the employment channels, as the basis for organizing hiring operations.
تحدد اللائحة قواعد سير العمل وإجراءاته في قنوات التوظيف، ونماذج السجلات والإشعارات والأوراق المستخدمة في أعمالها، وكذلك جداول تصنيف المهن وفقًا للتصنيف المهني ا
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.