Your employment contract is protected if your employer's business changes ownership or undergoes a structural change such as a merger or partition. Article 19 of the Saudi Labor Law states that employment contracts remain in force when ownership of a firm is transferred to a new owner or when a change occurs in its legal form — your job and contract terms do not automatically end simply because the business changes hands.
This means the new owner or restructured entity takes on the obligations of your existing contract, including your accrued benefits, salary terms, and continuity of service. Your length of service — which affects important benefits like end-of-service gratuity — should continue to be calculated from your original start date.
If the new employer attempts to impose new, less favorable terms or terminate your contract unlawfully after a business transfer, you have the right to challenge this through the Labor Office or the Labor Courts. It is wise to document your original contract terms and keep copies of payslips and any communication about the ownership change.
This is general legal information, not legal advice. For advice on your specific situation, consult a lawyer licensed in Saudi Arabia.