Saudi Arabia Makes Major Changes to Labor Law to Boost Work Environment, that Saudi Council of Ministers approved important Labor Law Update to create a better work environment and support the goals of Saudi Vision 30,These changes are designed to help sustainable development in the Kingdom.

The most important Labor Law Update include updating 38 articles, removing 7 articles, and adding 2 new ones, These updates align with Saudi employment market strategy and international agreements.

These updates are in line with the labor market strategy and the goals of Saudi Vision 2030.

The most important amendments to the work saudi system

The most important materials that were approved after updating the labor system in Saudi Arabia are:

• Compensatory leave: With the worker’s consent, days of compensatory paid leave may be calculated instead of overtime pay.
• Resignation: The case of resignation is added to be among the legitimate cases for the termination of the contractual relationship.
• The trial period: which stipulates that the trial period must be specified, and either party has the right to terminate the contract during the trial period.
• Maternity leave: which aims to increase the duration of maternity leave for a fully paid working woman to 12 weeks instead of 10 weeks.
• Prohibition of discrimination: in Labor Law Update Any prohibition of doing any act that would nullify equal opportunities or treatment between job applicants or employees.
• Training: Where the text in the training contract states the skill that the worker has acquired, the type of profession, and the duration.

Objectives of updating the labor law in saudi arabia

The amendments were made after a thorough study, comparing labor laws from several countries and considering global best practices, Over 1,300 participants shared their opinions and suggestions through the Istitlaa survey platform, that Private sector establishments, government agencies, labor committees, and human resources experts also contributed through workshops and meetings.

• Improve the labor market in Saudi Arabia.
• Enhancing job stability and protecting workers’ rights.
• Protect the rights of all parties in employment contracts.
• Develop human resources.
• Labor Law Update aim to Increase training opportunities.
• Create more job opportunities for citizens.
• Requiring employers to have training policies for employees.
• Updating grievance procedures and adding penalties for non-compliance.

Key Amendments to the Saudi Labor Law

These amendments came in order to obtain an attractive and distinguished labor market, Among the most important articles that were amended:

1. Employers must avoid any actions that could nullify or weaken the application of equal opportunities or fair treatment in employment and profession.
2. Adding a paid leave for the worker for a period of three days in the event of the death of a brother or sister.
3. Adding the rights and duties of the trainee and the employer in the training contract.
4. Increase maternity leave for working women to 12 weeks.
5. The possibility of agreeing to obtain paid leave instead of the wage due to the worker for overtime hours.
6. Determining the duration of the contract and its renewal for a non-Saudi worker if the contract does not state its duration.
7. The probation period must be specified in the employment contract, provided that the total period does not exceed 180 days in all cases.
8. Add a definition of resignation and assignment and add an article explaining the resignation procedures.
9. Adding a case for terminating the employment contract related to bankruptcy procedures and stipulating the issuance of a final decision or ruling from the competent court to terminate the worker’s contract in any of the bankruptcy procedures opened in accordance with the bankruptcy system.
10. Amending the notice period for termination of an open-ended contract to be 30 days if the termination is by the worker and 60 days if the termination is by the employer.

Timeline for implementing amendments to the new Saudi Labor Law

The new amendments will be effective 180 days after their publication, These changes are expected to improve the labor market, support small and medium enterprises, and contribute to sustainable development in the Kingdom.

The Saudi Labor Law update is play a crucial role in regulating employment relations in Saudi Arabia and The recent updates aim to create a more attractive labor market, enhance job stability, and align with the strategic goals of Saudi Vision 2030, By promoting fair treatment, equal opportunities, and a safe working environment, the law seeks to support both employers and employees in achieving sustainable growth and development.