Saudi Arabia is witnessing a transformative shift in its employment landscape. To foster a more competitive and attractive work environment, the Saudi Council of Ministers recently approved significant Saudi Labor Law updates that align with the ambitious goals of Saudi Vision 2030. These amendments are not just minor tweaks; they represent a strategic overhaul involving the update of 38 articles, the removal of 7, and the introduction of 2 brand-new regulations to meet international standards.

​In this article, we will break down what these changes mean for you, from the new 12-week maternity leave and revised probation periods to the formal procedures for resignation and compensatory leave. Whether you are an employer ensuring Saudi HR compliance or an employee seeking to understand your new rights, this guide covers everything you need to know about the latest Saudi labor law amendments.

At a Glance: Top 6 Saudi Labor Law Updates

​For quick reference, these are the most critical changes introduced in the recent Saudi labor law amendments. These updates are designed to enhance the Vision 2030 labor market by balancing worker well-being with business productivity:

• ​Maternity Leave: Increased to 12 weeks (fully paid).
• ​Probation Period: Standardized at 180 days (must be documented in the contract).
• ​Notice Periods: Updated to 30 days for employees and 60 days for employers.
• ​Resignation Rights: Formally recognized as a legal method to terminate fixed-term contracts.
• ​Bereavement Leave: New 3-day paid leave added for the death of a sibling.
• ​Compensatory Leave: Option to trade overtime pay for paid time off, subject to mutual agreement.

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​Major Amendments to the Saudi Labor System

​The updated Saudi Labor Law introduces structural changes that require immediate attention for employer compliance in 2026. Below is a detailed breakdown of the revised regulations:

​Maternity Leave: Supporting Working Women

​One of the most significant Saudi Labor Law updates is the extension of Saudi maternity leave to 12 weeks. This fully paid period allows working women to better manage health and family needs. This amendment reflects the Kingdom’s commitment to increasing female participation in the workforce under Saudi Vision 2030.

​Probation Period & Contract Duration

​The Saudi Labor Law probation period change now clarifies that the probation must be explicitly written in the employment contract. The total duration cannot exceed 180 days. Additionally, for non-Saudi workers, if a contract does not specify a duration or renewal terms, the contract is tied directly to the duration of the work permit.

​Resignation and Notice Period Procedures

​The resignation procedure in Saudi labor law has been modernized. Employees can now resign from fixed-term contracts legally through the approved platforms. Regarding notice, the employment contract notice period in Saudi Arabia for indefinite contracts is now set at 30 days if the employee initiates the termination and 60 days if the employer initiates it.

​Compensatory Leave and Overtime Rules

​Under the new amendments, compensatory leave instead of overtime in Saudi is now a formal option. While the standard overtime rate remains at 150% of the hourly wage, employers may, with the worker’s written consent, provide paid time off as an alternative. This offers greater flexibility for work-life balance in high-demand sectors.

​Employee Welfare: Bereavement Leave & Anti-Discrimination

​The updated law strengthens Saudi HR compliance regarding employee welfare. Workers are now entitled to 3 days of paid leave for the death of a brother or sister. Furthermore, the law explicitly prohibits any action that nullifies equal opportunity or fair treatment during the hiring process or throughout employment.

​Training Contracts and Professional Development

​The trainee contract rules now require employers to clearly state the specific skills to be acquired, the profession, and the training duration. This ensures that human resource development is measurable and contributes directly to the national labor market strategy.

​Contract Termination and Bankruptcy

​The amendments provide clear legal protections during financial instability. A contract may now be terminated due to bankruptcy only upon a final court ruling or decision. This ensures that the rights of both parties are protected under the formal Saudi bankruptcy system, preventing arbitrary terminations during corporate restructuring.

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Sector-Specific Impact: Who is Affected Most?

​The updated Saudi Labor Law ripples across various industries, but certain sectors will feel the impact more significantly due to their operational nature and workforce structure:

• ​Construction & Real Estate: With the Saudi Labor Law probation period change now capped at 180 days, companies in this sector must improve their performance evaluation speed for project-based staff. Additionally, the new bankruptcy termination rules provide a clearer legal framework for large-scale infrastructure projects.
• ​Manufacturing & Logistics: These sectors often rely on extended shifts. The introduction of compensatory leave instead of overtime in Saudi allows these businesses to manage peak seasons by offering time off during slower periods, optimizing operational costs while maintaining Saudi HR compliance.
• ​Healthcare & Education: Given the high percentage of female professionals in these fields, the Saudi maternity leave 12 weeks update is a major shift. Institutions must now adjust their coverage planning and budget for extended fully-paid absences.
• ​Professional Services & Consulting: The new resignation procedure in Saudi labor law and clarified trainee contract rules will help firms in this sector attract and retain young Saudi talent, aligning with the broader labor market strategy in Saudi Arabia.

​Employer Compliance Checklist: Preparing for the 2026 Changes

​To ensure full alignment with the Saudi labor law amendments, employers should initiate a structural review of their internal processes. Use this checklist to maintain employer compliance in 2026:

• ​Audit Employment Contracts: Update templates to reflect the new employment contract notice period in Saudi Arabia (30/60 days) and ensure the 180-day probation limit is explicitly stated.
• ​Update Leave Policies: Adjust internal HR manuals to include the Saudi maternity leave 12 weeks entitlement and the new 3-day paid bereavement leave for siblings.
• ​Overtime & Compensation Systems: Establish a formal process and written consent forms for employees who prefer compensatory leave over monetary overtime pay.
• ​Formalize Resignation Workflows: Ensure your HR team is trained on the updated resignation procedure in Saudi labor law and how it integrates with official government platforms.
• ​Training & Development: Review all trainee contract rules to ensure they specify acquired skills and durations, moving away from “general” internship descriptions to meet Vision 2030 labor market standards.
• ​Grievance & Disciplinary Procedures: Update internal grievance mechanisms to include the latest penalties for non-compliance and ensure fair treatment under the new anti-discrimination clauses.

​For businesses navigating these complex transitions, seeking expert Employment Law Advice is essential to mitigate risks and ensure a smooth transition to the new legal standards.

Implementation Timeline: When Does the Law Take Effect?

​Understanding the rollout schedule is critical for maintaining Saudi HR compliance. The Saudi Council of Ministers has established a clear transition period to allow businesses to adapt to the updated Saudi Labor Law:

• ​Effective Date: The new amendments will officially come into force 180 days after their publication in the official gazette.
• ​The Grace Period: This six-month window is intended for employers to audit existing agreements and integrate the Saudi Labor Law updates into their daily operations.
• ​Immediate Action: While the law provides a timeline, businesses are encouraged to begin the resignation procedure in Saudi labor law training and payroll adjustments for the Saudi maternity leave 12 weeks update immediately to avoid legal bottlenecks during the transition in 2026.

also read: Common Mistakes to Avoid When Starting a Business in Saudi Arabia

​Strategic Support: How Batic Law Firm Can Assist Your Business

​Navigating the complexities of Saudi labor law amendments requires precision and expert foresight. Batic Law Firm provides comprehensive Employment Law Advice tailored to the unique needs of both corporate entities and individual professionals within the Vision 2030 labor market.

​Our specialized services ensure your organization remains ahead of regulatory shifts through:

• ​Employment Contract Review and Drafting: We modernize your templates to include the latest employment contract notice period in Saudi Arabia and correctly defined trainee contract rules.
• ​Compliance and Regulatory Advice: Our team conducts thorough audits to ensure your internal policies, from compensatory leave instead of overtime to anti-discrimination mandates meet the highest legal standards.
• ​Workplace Dispute Resolution: We provide robust representation and counsel to resolve contractual disagreements or termination issues effectively.
• ​Tailored Compliance Management: By staying ahead of the updated Saudi Labor Law developments, we help you mitigate risks and maintain a stable legal foundation for growth.

​Secure your organization’s future.

Talk to an expert at Batic Law Firm today to ensure your business is fully prepared for the 2026 labor law implementation.

FAQs 

When do the labor law amendments take effect?

​The amendments take effect 180 days after publication in the official gazette.

​How has maternity leave changed?

​Maternity leave for working women has increased to 12 weeks fully paid.

​Can employers offer paid leave instead of overtime pay?

​Yes, with the worker’s consent, compensatory paid leave may be provided instead of overtime pay.

​What is the new maximum probation period?

​The probation period must be specified in the contract and cannot exceed 180 days in total.

​What are the new notice periods for termination?

​For open-ended contracts, the worker must give 30 days’ notice; the employer must give 60 days’ notice.