Your employment contract is protected if your employer sells the business or changes its legal structure. Under Article 19 of the Saudi Labor Law, employment contracts remain in force when ownership of a firm is transferred to a new owner, or when the business undergoes a legal change such as a merger, partition, or restructuring.
This means the new owner inherits your contract on the same terms — they cannot use the sale or transfer as a reason to terminate your employment without proper cause or force you to accept worse conditions. Both the old and new employer share joint liability for obligations that arose before the transfer.
As a practical step, if your company is being sold or restructured, request written confirmation from the new employer that your contract terms — including your salary, position, and accrued benefits — will be honoured. Also keep in mind that your end-of-service benefits continue to accrue from your original start date. Under Article 20, amounts owed to you as a worker are treated as first-priority privileged debts, meaning you have a protected claim over the employer's assets if payment is disputed.
This is general legal information, not legal advice. For advice on your specific situation, consult a lawyer licensed in Saudi Arabia.