Okaz, 20 July 2026: A recently issued work regulation by the Health Human Resources Company has sparked debate in the sector after Article 26 stated that “the company may grant its employees the annual allowance,” raising questions about whether the allowance has shifted from a statutory right to a discretionary benefit.
Legal expert Dr. Walid Al‑Otaibi explained that the wording departs from the established approach in civil service and health employment regulations, which used mandatory terms such as “shall be granted” or “is granted.” These formulations signified entitlement once conditions were met, making the allowance a guaranteed employment right.
By contrast, the new regulation’s use of “may” introduces discretionary authority, allowing the employer to decide whether or not to grant the allowance unless another provision restricts this discretion. The distinction between mandatory and permissive language is central to determining whether employees can claim the allowance as a right.
The executive regulation of the Labour Law for establishments also reflects this discretionary approach. Article 26 provides that “the establishment may grant employees annual allowances,” with the percentage determined by the financial position of the establishment. Eligibility requires at least an average rating in the annual performance evaluation after one year of service or since the last allowance. The regulation also permits exceptional allowances under specific conditions set by the employer.
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