How to Process Unpaid Leave and Salary Deductions in Saudi Arabia

Unpaid leave is a common HR requirement when an employee needs time away from work but does not have sufficient paid leave available or the absence is otherwise agreed as unpaid.

For payroll teams in Saudi Arabia, processing unpaid leave requires more than simply reducing an employee's salary. HR must document the leave, verify the applicable employment rules, update attendance records, calculate the appropriate salary adjustment, and ensure that deductions are lawful and properly recorded.