Immigration
Saudi Arabia | Major labour law changes
Saudi Arabia implements major reforms to Labour Laws to foster sustainable development
Summary
The Kingdom of Saudi Arabia’s Ministry of Human Resources and Social Development has announced significant
amendments to the country’s labour laws, approved by the Cabinet on 6 August. These reforms are designed to create a more attractive work environment and promote sustainable development, in alignment with the ambitious
objectives of Saudi Vision 2030.
Key Changes to Saudi Labour Laws
The comprehensive reforms reflect Saudi Arabia’s labour market strategy and its commitment to international agreements. Major updates include:
● Paid Leave for Bereavement: Introduction of paid leave following the death of a sibling.
● Extended Maternity Leave: Extension of maternity leave to 12 weeks.
● Paid Leave for Overtime: Introduction of paid leave in lieu of overtime wages.
● Trial Period Limitation: Limiting trial periods for labour contracts to 180 days.
● Notice Periods for Termination: Defining notice periods for terminating indefinite contracts to 30 days if initiated by employees and 60 days if initiated by employers.
Objectives of the Amendments
The Ministry emphasised that these amendments aim to:
● Improve the labour market in Saudi Arabia.
● Enhance job stability.
● Protect the rights of all parties in employment contracts.
● Develop human capital.
● Promote training opportunities for workers.
● Increase job opportunities for Saudi citizens.
These amendments were formulated following extensive studies, benchmarking against international labour laws, and incorporating global best practices. Feedback was gathered from over 1,300 participants through a survey platform, and additional input was solicited from private-sector companies, government entities, labour committees, and human resources experts via workshops and consultative meetings.
Legislative Changes
The new amendments involve modifications to 38 articles, the removal of 7 articles, and the addition of 2 new articles to the labour law. These changes are intended to support market, production, and service sectors, and to create a legislative environment conducive to small and medium-sized enterprises (SMEs), thereby increasing job
opportunities for citizens.
Additional Provisions
The new regulations also include:
● Expanded sections on leaves and contracts.
● Definitions for “resignation” and “assignment.”
● A new article outlining resignation procedures.
● Modified grievance procedures for workers.
● Penalties for unlicensed worker recruitment activities.
● A requirement for employers to provide training and qualification policies.
● Several amendments to maritime work regulations.
Implementation Timeline
The new amendments will take effect 180 days after their publication in the Official Gazette, allowing ample time for businesses and employees to adapt to the changes.
These reforms mark a significant step towards enhancing the Saudi labour market and ensuring that the Kingdom remains competitive and aligned with global standards. The Ministry of Human Resources and Social Development remains committed to supporting the goals of Saudi Vision 2030 by fostering a sustainable and inclusive work environment.
How we can help
We are closely monitoring these changes in Saudi Arabia, and can advise you with respect to the impact of those changes as well as conduct any assessments your business might need to comply with the new requirements.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Anir Chatterji
EMEA Immigration Partner
Ali Ibrahim
Director, KSA and Bahrain Lead
Ahmed Amer
Manager
Further information on Vialto Partners can be found here: www.vialtopartners.com
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