Saudi Arabia has recently declared major reforms to its labor laws in an effort to enhance job stability and protect employees’ rights. The Ministry of Human Resources and Social Development has stated that the new amendments will make the work environment more appealing; and the amendments will be in sync with Vision 2030.
Key changes include:
- Paid leave for the passing of a sibling
- Extension of maternity leave to twelve weeks
- Paid leave rather than overtime pay
- Limiting trial periods of labor contracts to 180 days.
- Defined notice periods for terminating indefinite contracts: If issued by the employees they should not exceed 30 days and if by the employers, then they should not exceed 60 days.
These updates seek to enhance the overall labor market, strengthen job security, safeguard employees’ rights, build human capital, focus more on worker training and increase employment opportunities for Saudi citizens.
These amendments were brought in after numerous research and discussions, with input from more than 1,300 participants and various stakeholders. The changes include the alteration to 38 articles, the deletion of seven articles and the addition of two new articles in the labor law.
These changes assist the market, production, and service sectors in an attempt to generate more employment, especially for the SMEs. New terms for “resignation” and “assignment” were included, as well as procedures to handle resignation and complaints from workers. New measures penalizing unauthorized recruitment activities were introduced, and employers were required to provide training and qualification policies.
The proposed amendments will come into effect 180 days after their publication in the Official Gazette. More details can be obtained from the official website of the Ministry.
