What You Need to Know About Saudi Arabia's New Labour Law Amendments

Saudi Arabia is set to implement significant changes to its Labour Law, with amendments approved by the Saudi Council of Ministers that will come into effect in February 2025. These reforms are part of the Kingdom's broader efforts under Saudi Vision 2030 to enhance job stability, protect employee rights, and clearly define employer obligations.

The amendments involve updates to 38 articles, the removal of seven, and the introduction of two new provisions, reflecting a comprehensive review of global best practices and feedback from over 1,300 stakeholders. The key changes include:

• Wages and Compensation: Adjustments have been made to wage structures and compensation regulations.
• Resignation and Termination: The amendments introduce clearer guidelines for resignation procedures and termination rights, including new definitions for “resignation” and “assignment.”
• Probation Periods: Rules surrounding probation periods have been clarified and updated.
• Leave Entitlements: Maternity leave has been extended to 12 weeks, and new paid leave options have been introduced, including leave for the death of a sibling and as compensation for overtime work.
• Employee Training: Employers are now required to implement training and qualification policies to enhance skills and improve performance.
• Grievance Procedures: The process for workers to file grievances has been revised, offering clearer pathways for addressing workplace issues.
• Penalties: New penalties have been established for unlicensed recruitment activities.

These changes are designed to create a more attractive and equitable work environment in Saudi Arabia, aligning with the Kingdom's sustainable development goals and labour market strategy. The new amendments aim to boost the labour market, promote the development of human capital, and increase job opportunities for Saudi nationals.

The updated regulations will take effect 180 days after their publication in the Official Gazette. For more information, visit the Ministry of Human Resources and Social Development’s website.

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