A surreal illustration of a foreign worker lost in a legal document labyrinth in Saudi Arabia.

Unfair Dismissal? Decoding the Labor Dispute Process for Foreign Workers in Saudi Arabia

Mira Elwood in Law & Justice August 2025 • 4 min read.

"Navigating labor disputes in Saudi Arabia as a foreign worker? Understand the complexities and your rights in a system without labor courts."

Saudi Arabia's economic growth since 1970 has led to significant development in its legal system, including laws aimed at protecting workers' rights. However, the interplay between modernist and traditionalist influences has created complexities, especially for low-skilled temporary foreign workers (TFWs).

The Saudi Labour Law (SLL), along with regulations like the Commissions for the Settlement of Labour Disputes and the Residence (Iqama) Regulations, govern the rights and responsibilities of laborers and employers. Yet, human rights violations persist, often linked to employment contracts and residency regulations.

This article critically examines the labor dispute resolution process in Saudi Arabia, focusing on its impact on TFWs. It explores the absence of a dedicated labor court, the role of quasi-judicial bodies, and the challenges faced by foreign workers within the existing legal framework.

Saudi Arabia's Legal System: A Blend of Tradition and Modernity

A surreal illustration of a foreign worker lost in a legal document labyrinth in Saudi Arabia.

The Saudi legal system operates under Islamic Sharia law, interpreted within a framework influenced by both modernist and traditionalist viewpoints. Islamic scholars and jurists (ulama) represent the traditionalist approach, deeply rooted in the country's history. This perspective emphasizes adherence to Sharia principles across all aspects of life.

Conversely, educated elites and legal professionals advocate for a modernist approach, drawing from Western legal thought and supporting the codification of laws. This tension between traditionalist and modernist perspectives shapes the legislative process, judicial system, and the interpretation of enacted laws.

Basic Law of Governance: Establishes the kingdom's foundational principles, recognizing the Qur'an and Sunnah as its constitution.
Royal Decrees: Supplement Sharia law and address modern requirements in areas like business, labor, and broadcasting.
Judicial System: Comprises Sharia courts, administrative courts (Board of Grievances), and quasi-judicial committees.

The absence of a unified legal code and the influence of traditionalist interpretations can create inconsistencies and challenges in the application of labor laws, particularly for vulnerable TFWs.

Toward a Fairer System: Reforming Labor Dispute Resolution

The current labor dispute resolution process in Saudi Arabia presents significant challenges for temporary foreign workers. The absence of labor courts, coupled with the complexities of the kafala system and the influence of traditionalist legal interpretations, can leave TFWs vulnerable to exploitation and injustice. To address these issues, reforms are needed to unify the judicial system, enhance the independence and expertise of labor dispute committees, and ensure that all workers, regardless of their nationality or skill level, have access to fair and effective legal recourse.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.5539/ilr.v7n1p199, Alternate LINK

Title: Labour Dispute Resolution Process And Its Impact On The Rights Of Low-Skilled Temporary Foreign Workers In The Absence Of A Labour Court In Saudi Legal System: A Critique

Subject: Industrial and Manufacturing Engineering

Journal: International Law Research

Publisher: Canadian Center of Science and Education

Authors: Abdullah Almutairi

Published: 2018-02-28

Everything You Need To Know

What are the key challenges faced by temporary foreign workers (TFWs) in the labor dispute resolution process in Saudi Arabia?

Temporary foreign workers (TFWs) in Saudi Arabia encounter several key challenges. The primary one is the absence of dedicated labor courts, meaning disputes are handled by quasi-judicial bodies. The complexities of the kafala system often exacerbate vulnerabilities. Furthermore, the influence of traditionalist interpretations of Islamic Sharia law can lead to inconsistencies and potential disadvantages for TFWs. These factors can make it difficult for them to seek fair and effective legal recourse when facing issues like unfair dismissal.

How does the interplay between traditionalist and modernist influences affect the application of labor laws in Saudi Arabia?

The Saudi legal system's dual nature, blending Islamic Sharia law with modernist influences, significantly impacts the application of labor laws. Traditionalist viewpoints, rooted in the interpretations of Islamic scholars and jurists (ulama), emphasize adherence to Sharia principles, which can sometimes lead to rigid interpretations. Modernist influences, supported by educated elites and legal professionals, advocate for codification and the adoption of Western legal concepts. This tension can result in inconsistencies and challenges in applying labor laws, particularly for temporary foreign workers (TFWs), as rulings may vary depending on the interpretation.

What are the primary legal instruments that govern labor rights and responsibilities in Saudi Arabia?

The rights and responsibilities of laborers and employers in Saudi Arabia are primarily governed by the Saudi Labour Law (SLL). Complementing this, regulations like the Commissions for the Settlement of Labour Disputes and the Residence (Iqama) Regulations also play a crucial role. The SLL sets the foundational framework, while the other regulations offer specific guidelines for dispute resolution and residency matters affecting foreign workers.

What is the role of the Basic Law of Governance and Royal Decrees within the Saudi Arabian legal system?

The Basic Law of Governance in Saudi Arabia establishes the fundamental principles of the kingdom, with the Qur'an and Sunnah forming its constitutional basis. It sets the overarching framework for governance. Royal Decrees, on the other hand, serve to supplement Sharia law and address modern needs, covering various areas such as business, labor, and broadcasting. They are issued by the King and are essential for adapting the legal system to evolving societal and economic requirements, particularly in areas not explicitly covered by Sharia.

What are the key reforms needed to improve the labor dispute resolution process for temporary foreign workers in Saudi Arabia?

To improve the labor dispute resolution process for temporary foreign workers (TFWs) in Saudi Arabia, several key reforms are necessary. These include unifying the judicial system to provide a more consistent legal environment. Enhancing the independence and expertise of labor dispute committees is essential to ensure fair adjudication. Furthermore, ensuring all workers, regardless of nationality or skill level, have access to effective legal recourse is crucial. These changes would help address vulnerabilities faced by TFWs, protect their rights, and promote a fairer labor environment.