Saudi Arabia Unveils Major Amendments to Labor Law
As of February 19, 2025, the Ministry of Human Resources and Social Development (MHRSD) has implemented significant amendments to the Saudi Labor Law, following Cabinet Resolution No. (117) and Royal Decree No. (44).
These changes aim to enhance job stability, worker rights, and contractual clarity in line with Saudi Vision 2030.
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The revised law includes 38 amended articles, the removal of seven provisions, and the addition of two new articles, reflecting a strategic move towards a more competitive and equitable labor market.
Key Amendments to the Saudi Labor Law
- Strengthening Workplace Equality
Employers are prohibited from actions that hinder equal treatment and opportunities for employees, ensuring fair practices across sectors. - Expanded Leave Benefits
- Bereavement Leave: Three days of paid leave for the death of a sibling.
- Maternity Leave: Increased to 12 weeks of paid leave for female employees.
- Employee Rights in Training Contracts
The law mandates that the rights and obligations of trainees and employers must be clearly defined in training contracts. - New Regulations on Paid Leave & Overtime Compensation
Employees may convert paid leave into overtime pay, offering greater flexibility. - Probationary Period Limitations
The probation period must be specified in contracts and cannot exceed 180 days. - Notice Period for Open-Ended Contracts
Employees must provide a 30-day notice before resigning, while employers must give a 60-day notice for termination. - Automatic Resignation Approval
If employers do not respond to a resignation request within 30 days, the resignation is automatically accepted.
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Impact on the Labor Market
These reforms support Saudi Vision 2030 by promoting job security, economic growth, and private sector investment. The updated labor law is expected to:
- Attract skilled workers to the Saudi job market.
- Enhance job stability and contractual transparency.
- Improve work-life balance, especially for working mothers.
- Increase employer accountability and reduce workplace discrimination.
These regulatory updates reflect Saudi Arabia’s commitment to modernizing its labor market, making it more competitive and aligned with global employment standards.
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