Annual Leave Request Form (Saudi Labor Law-Compliant)

Every HR manager or business owner in Saudi Arabia knows the scene: an employee walks into the office in the morning and says, “I want to take next week off.” There is no official form, no record of their remaining balance, and no backup plan to cover their tasks while they are away. The decision is given verbally, the employee file update is delayed in the system, and everyone later discovers that the employee exceeded their balance, or that an entire department was absent in the same week.

Annual leave is not a cosmetic clause in an employment contract. It is a right enshrined in the Saudi Labor Law in specific articles (Articles 109 through 112), and it has a direct financial impact at the end of service. Every day of accrued and unpaid leave sits as a liability on the company’s books, and every day consumed outside the official form opens the door to a future dispute before the labor office or the Qiwa platform.

This template turns annual leave from an improvised verbal event into a documented process: a written request, sequential approval, automatic balance deduction, a coverage plan during absence, and an accurate calculation of leave pay and the annual flight ticket at end of service. The template is ready for immediate use or to run inside Qoyod with a live link to each employee’s balance.

Annual Leave Rights Under the Saudi Labor Law

The Saudi Labor Law sets the annual leave balance clearly in Article 109 of the Saudi Labor Law, and ties it to the employee’s length of service with the employer. The balance is not negotiable below the legal minimum, but the company is free to grant additional days voluntarily. Any employer who grants less than the minimum exposes themselves to a violation and to a labor claim when the contract ends.

Minimum Annual Balance

An employee who has completed a full year of service is entitled to annual leave of no less than 21 days, increased to no less than 30 days if they have spent five consecutive years in the employer’s service. This leave is fully paid, and the wage is disbursed before the leave starts, in line with the wording of the law.

Pro-Rata Balance for New Employees

An employee who has not completed a full year is entitled to leave in proportion to the period they have served. The rough calculation: 21 days divided by 12 months gives 1.75 days per month of service. After 6 months an employee is theoretically entitled to 10.5 days. Many companies require the probation period (90 days) to be completed before the balance can actually be used, and this is permitted by law as long as the balance is accrued and not lost.

The Difference Between a Working Day and a Calendar Day

The law counts leave in days, but in practice companies differ: some deduct working days only and exclude Friday and Saturday, while others deduct full calendar days. The position adopted by the Ministry of Human Resources is that weekly rest days and official public holidays falling within the leave period are not counted against the annual balance. In other words, an employee who takes 7 calendar days including a Friday and Saturday will only have 5 days deducted from their balance.

Full Annual Leave vs. Split Leave

The law gives the employee the right to enjoy their leave in the year in which it was earned, but it does not require it to be taken in one stretch. The agreement between the two parties determines whether it will be taken in full or spread across periods. Each format has operational and financial implications that differ from the other.

Full Leave in a Single Period

The employee takes their entire balance (21 or 30 days) in one period, usually in summer, Ramadan, or to perform Hajj. This pattern is common in the contracts of employees coming from outside the Kingdom because it allows them to travel back to their home country. Its operational drawbacks: a long absence, difficulty covering tasks, and pressure on colleagues. Its administrative advantage: clear planning and a zero balance afterwards.

Split Leave

The employee takes their balance in two or more batches throughout the year. The most common split: 10 days in summer, 5 days in a mid-year break, and 6 days spread across other occasions. This pattern suits the Saudi employee who does not need long-distance travel, and is lighter on the company because the absence never exceeds about a week at a time.

Splitting Rules Under the Law

• Employer’s right to set the date: Article 110 of the Saudi Labor Law gives the employer the right to set the leave date according to the requirements of work, or to grant it by rotation to ensure continuity. The employer must notify the employee at least 30 days before the date.
• Employee’s right to refuse forced splitting: an employee cannot be forced into an exhausting split (such as one day at a time). The usual agreement is for two or three batches.
• Minimum batch size: there is no explicit text, but the administrative norm sets 5 days as the minimum batch so it counts as actual “leave” and not just a daily absence.

Components of an Annual Leave Request Form

An effective form gathers enough data to calculate the balance, document the approval, and ensure business continuity during the absence. An incomplete form (which only asks for name and date) opens the door to later disputes, especially when calculating leave pay at end of service.

Additional Fields for Mature HR Functions

• Sequential request number: helps with archiving and linking to attached documents (ticket, visa, medical report if any).
• Request status: under review, approved, rejected, cancelled, with a maximum response window (3 working days, for example).
• Total leave days consumed annually: to flag employees approaching balance exhaustion.
• Handover confirmation: a small checklist (tasks handed over, email forwarded, system access codes shared with the backup).

Planning Team Leave and Avoiding Operational Gaps

One of the worst scenes in HR management: 4 employees from the sales department submit their requests for the same week in July, and the manager discovers it on June 28. The department will be down for an entire week. Advance planning is the only solution.

The Annual Team Leave Map

In the last quarter of the year (October, November), the HR manager asks each employee to identify their expected leave periods for the coming year. These dates are gathered into a collective map, and where there is a conflict in the same department, employees are asked to coordinate. This map is not binding, but it is a negotiation reference.

Distribution Rules

• The “20% maximum absent” rule: no more than one fifth of department members may be absent at the same time. A department of 10 allows only 2 employees on leave in the same week.
• Leave freeze in peak season: sectors such as retail have peak periods where leave is not granted except by exception (Black Friday, the last days of Ramadan, the back-to-school period).
• Priority for the earlier applicant: in case of conflict, the first to submit wins, with consideration for employees who have not had a long break in a while.
• Linking leave to financial close: accountants cannot have leave approved in the first week of the month (closing the previous month) nor in January (closing the year).

Task Coverage During Absence

Every leave request of 5 days or more must include a written coverage plan: what the critical tasks are, who will handle them, who the alternative point of contact is for clients or suppliers, and who has the system access required. Without this plan, the leave creates a vacuum, and the employee themselves returns to a pile of email and angry customers.

The Annual Flight Ticket for Non-Saudi Workers

Article 40 of the Saudi Labor Law obliges the employer to bear the cost of the non-Saudi worker’s travel back to their home country at the end of the contract, unless the contract states otherwise. Many contracts expand on this right and grant a paid annual flight ticket as part of the annual leave package.

Forms of the Annual Ticket in Contracts

• In-kind ticket: the company books the ticket and hands it to the employee. Less common today due to procedural complexity.
• Fixed cash allowance: a fixed amount paid annually (for example, SAR 2,500 for an employee and family to India, SAR 4,500 to Egypt, varying by nationality). The most common form.
• Ticket once every two years: some contracts make it biennial with an increased value (a round-trip ticket for the full family).
• Not stipulated: the contract grants it only at end of service, not during. Permitted by law, but it weakens the job offer.

Estimating the Ticket Value When Paid in Cash

The usual practice is for the company to set an average market value for an economy round-trip ticket on a non-premium airline, based on September or October pricing (a mid-season month). It is preferable for the contract to state the fixed amount and the update mechanism (annually or every two years).

These are indicative figures for practice in Riyadh and Jeddah, and should be updated annually based on actual market prices at the time of payment.

Wages During Leave and Leave Pay at End of Service

Article 109 of the Saudi Labor Law states that the employer must pay the wage in full before the leave begins, meaning the employee does not wait until the end of the month to receive the pay for the leave period. This is one of the clauses companies most often breach unintentionally, especially for leave starting mid-month.

How the Wage Is Calculated

The wage paid covers the basic salary and all fixed allowances (housing, transport, nature-of-work allowance if any). Variable allowances (sales commissions, overtime, incentives) are not counted because they fluctuate. Example: an employee with a basic salary of SAR 7,000 + housing allowance SAR 1,500 + transport allowance SAR 500 = SAR 9,000 total. For 21 days of leave, the full monthly wage is paid for the months the leave covers.

Leave Pay at End of Service

Article 111 of the Saudi Labor Law requires the employer to pay the worker a wage for the accrued leave days not taken at the end of the contract. The calculation: accrued days × (total wage / 30). Example: an employee whose contract has ended with an accrued balance of 15 days and a total wage of SAR 9,000. Leave pay due = 15 × (9,000 / 30) = SAR 4,500.

Postponing, Freezing, and Cashing Out Leave

Many people conflate three concepts that the law treats differently: postponement (moving leave to a later year), freezing (keeping the balance without using it), and cash compensation (paying the value of leave instead of taking it). Each has different conditions.

Postponement

Article 110 of the Saudi Labor Law allows leave to be postponed to the following year with the written consent of the employee. Postponement for more than one year requires fresh consent. Any backlogged balance loses its “annual” character and becomes a statutory debt on the company’s books.

Cumulative Freezing

Some companies allow the employee to accumulate their balance over several years (for example, 3 years without use). Legally this is permitted as long as the employee agrees, but it creates an inflated financial liability for the company. It is preferable to set a freeze cap (for example, the balance may not exceed 1.5 times the annual balance = 31.5 days for an employee whose balance is 21).

Cash Compensation Instead of Leave

This is the most contentious topic. The Ministry of Human Resources has issued decisions confirming that leave is a personal right of the employee whose purpose is rest, and it cannot be substituted with a cash payment except at end of service. An employer who pays the employee a cash amount to keep working during their leave days violates the law and exposes themselves to accountability if the employee later files a complaint. The only exception: end of service under Article 111 of the Saudi Labor Law.

Statute of Limitations on Leave

Article 222 of the Saudi Labor Law makes labor claims (including claims for leave pay) lapse after 12 months from the date the employment relationship ended. During ongoing employment, backlogged leave does not lapse and remains owed by the employer.

Leave Under Flexible and Part-Time Contracts

Ministerial Decision No. 51848 of 1442H regulated the flexible (hourly) work contract as well as the part-time contract. Each has leave rules different from the traditional full-time contract.

Flexible Work Contract (Hourly)

Under this contract there is no annual leave balance counted in days as in the traditional contract, because the worker is paid by the hour according to the company’s needs. Instead, the worker is entitled to an additional wage of 4% of the hourly rate as a leave allowance. This allowance is paid with the monthly wage and does not accumulate. Example: a worker who works 80 hours per month at SAR 30 per hour = SAR 2,400 + SAR 96 leave allowance monthly.

Part-Time Contract

A part-time employee is entitled to annual leave in the same proportion as their hours bear to full-time hours. An employee working 4 hours per day (half time) is entitled to half the balance: 10.5 days annually instead of 21. The wage during leave is calculated based on their actual part-time salary.

Seasonal Projects

A worker on a 6-month project is entitled to a pro-rata balance of 10.5 days. If they cannot use it before the project ends, it is paid to them in cash with the final settlement. A good form has a clear field for contract type to ensure correct calculation.

Linking Leave to Qiwa and Employee Entitlements

The Qiwa platform, run by the Ministry of Human Resources, requires periodic updates to workforce data. Any extended leave (especially one requiring the employee to travel outside the Kingdom) involves procedures linked to the exit and re-entry visa before its electronic system was discontinued, and its effects on labor inspection still apply.

GOSI During Leave

An employee on paid annual leave has their full General Organization for Social Insurance (GOSI) contribution calculated as normal and remains covered. There is no need to pause the contribution or change their status. This differs from unpaid leave, which requires the contribution to be paused after 6 months.

Mudad and Payroll

The Mudad platform links companies’ payrolls to the Wage Protection System. When an employee takes extended leave (more than a month) and the wages for that period are paid in advance before the leave begins, this must be recorded correctly in the monthly payroll so the wage does not appear as “delayed” in Wage Protection reports.

Reports Required Periodically

• Monthly balance report for each employee: issued to the company to track accumulated obligations.
• Approved leave report for the period: for HR and senior management.
• Report of employees who have not taken leave for 18 months: a financial risk indicator.
• Projected leave pay report at end of service for each employee: to prepare end-of-service obligations on the financial statements.

Deducting the Flight Ticket and Remaining Days at End of Service

When the employment contract ends, the employee and employer enter a final settlement that brings together all entitlements: end-of-service award (Articles 84 and 85 of the Saudi Labor Law), accrued leave pay (Article 111 of the Saudi Labor Law), flight ticket if due, and any pending amounts. The common error: forgetting one of these items or calculating it incorrectly.

Order of Calculating Entitlements

1. Close the salary balance up to the last actual working day.
2. Calculate accrued leave pay (remaining days × daily total wage).
3. Calculate the end-of-service award (half a month for each of the first five years + a full month for each year after that, based on the last wage).
4. Add the flight ticket allowance if the contract stipulates it at end of contract.
5. Deduct any cash advances or loans from the company.
6. Deduct any unreturned company property (laptop, phone, car).
7. Issue the final settlement and have both parties sign it.

A Worked Settlement Example

Mohamed has worked at a trading company in Riyadh for 6 years on a total wage of SAR 12,000. His contract ends on June 30. He has an accrued leave balance of 18 days. His contract grants an annual flight ticket to Cairo (SAR 1,400) and he used it this year.

• Last month’s salary: SAR 12,000.
• Accrued leave pay: 18 × (12,000 / 30) = SAR 7,200.
• End-of-service award: first five years = 5 × (12,000 / 2) = SAR 30,000, sixth year = SAR 12,000. Total SAR 42,000.
• Final flight ticket: SAR 1,400 (to return home).
• Total before deductions: SAR 62,600.
• Deductions: SAR 3,000 cash advance + SAR 4,500 unreturned laptop = SAR 7,500.
• Net amount due: SAR 55,100.

Signing the Final Clearance

The final clearance is drawn up on official company letterhead, includes the full breakdown above, and is signed by both parties. One copy goes to the employee, one to the file, and one is attached to the file closure on the Qiwa platform and the GOSI platform. This clearance is the document that protects the company from any later claim.

The Most Common Mistakes in Managing Annual Leave

After reviewing the records of many companies, a set of recurring mistakes emerges, all of which can be avoided with a clear system and a standard form.

Documentation Mistakes

• Verbal approval with no signed form: the employee tells the manager “ok” and travels, then everyone discovers the balance was never deducted. In a later dispute there is no document.
• Failure to update the balance immediately: leave is approved but the balance is not deducted in the system for weeks, so the employee is granted new leave based on an outdated balance.
• No electronic archive: forms are only printed, and when asked “where is so-and-so’s leave form from 4 years ago?” it cannot be found.

Calculation Mistakes

• Counting Friday and Saturday inside the leave: deducting 7 days instead of 5 for leave from Sunday to Sunday.
• Paying the wage at month end instead of before the leave begins: a direct breach of Article 109 of the Saudi Labor Law.
• Not counting fixed allowances: paying only the basic salary without housing and transport allowances.
• Sticking with 21 days after 5 years: forgetting the statutory uplift to 30 days.

Operational Mistakes

• No coverage plan: the employee is absent, their tasks fall on whoever finds them, or wait two weeks.
• Half the department on leave at the same time: because no one set a rule for the maximum concurrent absence.
• Allowing leave every other day: the employee takes a day here and a day there until the balance is gone without ever actually “resting”.
• No freeze cap: employees have 90 days accumulated on the company’s books, creating a huge financial liability.

How Qoyod Tracks Employee Leave Balances Automatically

Managing leave manually on Excel files or paper ledgers works in a company of 5 employees, but collapses at 20 employees and becomes a legal risk at 50 employees. Qoyod links leave with payroll, leave pay, and the flight ticket allowance in one integrated system.

What Qoyod Does Automatically

• Calculates the monthly accrued balance: 1.75 days are added each month to every employee (or 2.5 days after 5 years) with no manual intervention.
• Deducts leave days the moment they are approved: the digital leave request reaches the manager, is approved, and the balance is deducted in real time.
• Pays the leave wage before it starts: when scheduling the monthly payroll, the system calculates the approved leave period wage and merges it into the payslip correctly.
• Estimates the leave pay liability in every financial report: each employee’s accrued balance × daily wage is calculated and appears in end-of-service obligations on the balance sheet.
• Alerts on employees who have not taken leave for 12 months: a preventive warning before the balance grows into a financial risk.
• Leave reports at the department and company level: concurrent absence indicator, projected termination liabilities, and planning for the coming year.

Linking with Payroll and the Flight Ticket Allowance

When an employee’s service ends, Qoyod generates a detailed final settlement covering accrued leave pay based on the actual total wage (basic salary + fixed allowances), the end-of-service award, and the flight ticket allowance if the contract stipulates one and it was not used. The settlement is printed ready for signature.

The payroll module details, and how it links with leave pay and end-of-service allowances, are explained on the payroll feature page, and for subscription plans see the pricing page.

Frequently Asked Questions

How many annual leave days does the Saudi Labor Law provide?

21 working days per year for an employee who has completed one full year of service, increased to 30 days per year after completing 5 consecutive years with the same employer. The leave is fully paid, and the wage is disbursed before the leave begins under Article 109 of the Saudi Labor Law. Any contract stipulating less than this minimum is in breach of the law, and the minimum is binding.

Can the employer refuse an annual leave request?

The employer cannot cancel the right to leave, but can set its date according to work requirements under Article 110 of the Saudi Labor Law, provided the employee is notified at least 30 days before the date. A permanent refusal of leave throughout the year amounts to denial of a right and exposes the company to labor liability. The solution: set a nearby alternative date.

Can annual leave be replaced with a cash payment instead of being taken?

It cannot during an ongoing employment relationship, because leave is a personal right whose purpose is rest. The only exception: at end of service, accrued unused days are converted into a cash allowance under Article 111 of the Saudi Labor Law. An employer who pays the employee to keep working during their leave days breaches the law and exposes themselves to a complaint at the Ministry of Human Resources.

How is leave pay calculated at end of service?

The formula: accrued leave days × (total wage / 30). The total wage covers the basic salary and all fixed allowances (housing, transport, nature of work). Variable allowances (commissions, incentives) are not counted. Example: 18 days × (10,000 / 30) = SAR 6,000. It is paid as part of the final settlement together with the rest of the entitlements.

Is the annual flight ticket a mandatory right for every non-Saudi worker?

Article 40 of the Saudi Labor Law obliges the employer to cover the non-Saudi worker’s travel costs at end of contract only, unless the contract states otherwise. The annual ticket during employment is not legally mandatory, but it is a very common practice and many contracts include it as part of the benefits package. The value is set based on the employee’s destination and the number of accompanying family members.

What is the cap on accruing leave balance?

The law does not set an explicit cap on accruing balance, but it allows postponing leave for only one year with the employee’s written consent. From a practical perspective, it is advisable to set an internal cap in the company policy (for example, the balance may not exceed 1.5 times the annual balance = 31.5 days for an employee whose balance is 21) to avoid inflated financial liabilities and to protect the employee’s right to actual rest.

Are Fridays and Saturdays counted against the leave balance?

Weekly rest days (typically Friday and Saturday) and official public holidays falling within the leave period are not counted against the annual leave balance. Example: an employee who takes leave from Sunday to the following Sunday (7 calendar days) has only 5 days deducted from their balance. This understanding is adopted by the Ministry of Human Resources and the labor courts.

What is the difference between annual leave and sick leave?

Annual leave is a fixed annual right (21 or 30 days), fully paid, decided by the employee in agreement with the company. Sick leave (Article 117 of the Saudi Labor Law) is granted upon proof of illness by a medical report: 30 days at full pay + 60 days at three quarters of the pay + 30 days without pay, within one year. The two leaves are separate, and one cannot be drawn against the other.