Saudi Arabia Announces Major Labour Law Amendments to Enhance Work Environment

The Saudi Council of Ministers approved significant amendments to several articles of the Labour Law.These changes are designed to make the work environment more attractive and contribute to sustainable development in alignment with Saudi Vision 2030.

The Ministry of Human Resources and Social Development announced that the new amendments affect 38 articles, with seven being deleted and two new articles added.

These revisions align with Saudi Arabia’s employment market strategy and international agreements ratified by the Kingdom. The amendments will come into effect 180 days after their publication in the official Gazette.

The aim of these changes is to improve the labour market, enhance job stability, protect the rights of all parties involved in contractual relationships, develop human resources, boost training opportunities for workers and increase job opportunities for Saudi citizens.The amendments address the interests of all parties in the contractual relationship.

Key changes include an expanded section on vacations and labour contracts, the addition of definitions for resignation and assignment, a new article outlining resignation procedures, updated grievance procedures for workers, and penalties for employing workers without a ministry licence.

Employers will also be required to establish a policy for employee training and development to improve skills and standards. Furthermore, there have been updates to regulations concerning maritime work.

The Ministry explained that these amendments were developed following a comprehensive study, including comparisons with labour laws from various countries and an analysis of best global practices.

Over 1,300 participants provided feedback on the proposed amendments through the Istitlaa survey platform, managed by the National Competitiveness Centre.

The consultation process also involved private sector organisations, relevant government agencies, labour committees and human resources specialists through workshops and advisory meetings.

These amendments aim to reinforce the development of existing systems and regulations, support the market and enhance the production and service sectors.

They also seek to provide a suitable legislative environment and support small and medium-sized enterprises, thereby creating more job opportunities for citizens and achieving the sustainable development goals outlined in Saudi Vision 2030.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.