New Saudi Labor Law Amendments: What Expats Need to Know
The Saudi Council of Ministers recently approved significant amendments to the Labor Law, aiming to create a more attractive work environment and support sustainable development goals aligned with Saudi Vision 2030. These changes, announced by the Ministry of Human Resources and Social Development, are designed to enhance job stability, protect the rights of workers and employers, and develop the nation’s workforce.
Key Changes to the Labor Law
The new amendments affect 38 articles of the Labor Law, with seven articles being deleted and two new articles added. These updates are part of Saudi Arabia’s broader strategy to improve the employment market and align with international labor agreements. The amendments will take effect 180 days after their publication in the official Gazette.
Goals of the Amendments
The primary goals of these changes are to:
- Improve the labor market in Saudi Arabia
- Enhance job stability for workers
- Preserve the rights of both employees and employers
- Develop human resources through better training opportunities
- Increase job opportunities for Saudi citizens
Detailed Changes
The amendments considered the interests of all parties in the contractual relationship. They expanded provisions on vacations and labor contracts, defined “resignation” and “assignment,” and added an article specifying resignation procedures. Penalties were introduced for employing workers without a Ministry license, and employers are now required to create training policies to improve employee skills. Additionally, there were several amendments related to maritime work.
Key Amendments to Labor Law Articles
- Added Employer’s Duty: Employers must refrain from doing anything that would nullify or undermine the application of equal treatment in usage and professional matters.
- Paid Bereavement Leave: A paid leave of three days for workers in the event of the death of a spouse or close relative.
- Trainee Rights and Duties: Adding the rights and duties of the trainee and the employer during the training period.
- Increased Maternity Leave: Maternity leave for female workers has been increased to fourteen weeks.
- Overtime Compensation: Workers can agree to take paid leave instead of receiving additional overtime compensation.
- Contract Renewal Mechanism: Specifying the mechanism for renewing contracts for non-Saudi workers if not explicitly mentioned in the contract.
- Probation Period: The probation period must be specified in the labor contract and must not exceed a total duration of one hundred and eighty days.
- Definitions and Procedures: Adding definitions for “resignation” and “assignment,” along with an article specifying resignation procedures.
- Bankruptcy-Related Termination: Adding a case for the termination of the labor contract related to bankruptcy procedures, ending with a ruling or decision by the competent court.
- Notice Period for Contract Termination: Amending the notice period for the termination of a fixed-term contract to be thirty (30) days if the termination is from the worker’s side and sixty (60) days if the termination is from the employer’s side.
Inclusive Process
The ministry explained that these amendments resulted from extensive studies and comparisons with labor laws in other countries. Over 1,300 participants provided feedback through the Istitlaa survey platform, operated by the National Competitiveness Center. The ministry also consulted with private sector establishments, government agencies, labor committees, and human resources experts through workshops and meetings.
Supporting Vision 2030
These amendments aim to support Saudi Vision 2030 by developing existing systems and regulations to strengthen the labor market, enhance production and service sectors, and provide a conducive legislative environment. They also focus on supporting small and medium enterprises, creating more job opportunities for Saudi citizens, and achieving sustainable development goals.
For More Information
For more details about the amendments to the Labor Law, visit the official website of the Ministry of Human Resources and Social Development.
By implementing these amendments, Saudi Arabia continues to make significant strides towards a more robust and equitable labor market, fostering growth and development in line with Vision 2030.
