Saudi Arabia announces Labor Law amendments to improve work environment

The Ministry of Human Resources and Social Development said the new amendments encompass 38 articles, deleting seven articles, and adding two new articles to the Labor Law. The new amendments will be effective after 180 days from the date of their publication in the official Gazette.

On August 6, 2024 the Saudi Council of Ministers approved amendments to a number of articles of the Labor Law.  The amendments seek to improve the labor market, enhance job stability, preserve the rights of parties to the contractual relationship, in addition to increasing training opportunities for workers and expanded job opportunities for Saudi citizens.

According to Arabian Business the updates include:

  • Introduction of paid leave following the death of a sibling
  • Extension of maternity leave to 12 weeks
  • The introduction of paid leave in lieu of overtime wages
  • Limiting trial periods for labor contracts to 180 days
  • Defining notice periods to terminate indefinite contracts to 30 days if initiated by employees and 60 days when initiated by employers

Definitions for the terms “resignation” and “assignment” were also added, along with an article outlining resignation procedures and modifying grievance procedures for workers.

The Ministry of Human Resources and Social Development noted that the amendments were made after extensive study including the survey input of more than 1,300 people.  Private sector companies and relevant agencies were also consulted via workshops and meetings.

The ministry stated that these amendments were intended to improve the labor market; enhance job stability; protect the rights of all parties involved in employment contracts; develop human capital; promote training opportunities for workers and increase job opportunities for Saudi citizens.

To read more, click here and here.

 

 

 





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