Saudi Arabia is set to implement major changes to its labour laws, aimed at enhancing worker rights and job stability. These reforms, endorsed by the Cabinet on August 6, are expected to foster a more attractive work environment and support sustainable development in line with Saudi Vision 2030.
Key updates to the labour laws include:
- Extended Maternity Leave: Maternity leave has been increased to 12 weeks.
- Paid Leave for Sibling’s Death: Employees will now receive paid leave in the event of a sibling’s death.
- Paid Leave for Overtime: Workers will be compensated with paid leave instead of overtime wages.
- Shortened Trial Periods: The trial period for labour contracts has been limited to 180 days.
- Defined Notice Periods: For indefinite contracts, the notice period is now 30 days if initiated by employees and 60 days if initiated by employers.
These changes align with Saudi Arabia’s labour market strategy and international agreements. They aim to:
- Enhance the labour market in Saudi Arabia
- Improve job stability
- Protect the rights of all parties involved in employment contracts
- Develop human capital
- Promote training and development opportunities
- Increase job prospects for Saudi citizens
The Ministry of Human Resources and Social Development undertook a thorough review process, including international benchmarking and consultation with over 1,300 participants through surveys, workshops, and expert meetings.
The reforms involve updates to 38 articles, the removal of 7 articles, and the addition of 2 new articles to the labour law. These amendments are designed to strengthen existing regulations, support small and medium-sized enterprises (SMEs), and foster job creation in line with Vision 2030.
For further details, the Ministry of Human Resources and Social Development invites interested parties to visit their official website. The new amendments will take effect 180 days after their publication in the Official Gazette.