The Ministry of Human Resources and Social Development (MHRSD) has officially enforced new amendments to the Saudi Labor Law as of February 19, 2025. These changes, enacted through Cabinet Resolution No. (117) and Royal Decree No. (44), aim to enhance job stability, worker rights, and contractual clarity in line with Saudi Vision 2030.
The revised law introduces 38 amended articles, removes seven provisions, and adds two new articles, reflecting a strategic approach to creating a more competitive and equitable labor market in Saudi Arabia.
Key Amendments to the Saudi Labor Law
1. Strengthening Workplace Equality
Employers are now strictly prohibited from taking any action that hinders employees from receiving equal treatment or opportunities in the workplace. This change aims to ensure fair employment practices across all sectors.
2. Expanded Leave Benefits
- Bereavement Leave: Employees are now entitled to three days of paid leave in the event of a sibling’s death.
- Maternity Leave: Female employees now receive 12 weeks of paid maternity leave, an increase from the previous duration.
3. Employee Rights in Training Contracts
The revised law mandates that trainees’ rights and obligations, as well as those of the employer, must be explicitly stated in the training contract. This ensures better workplace transparency for interns and trainees.
4. New Regulations on Paid Leave & Overtime Compensation
Employees can now opt to convert paid leave into overtime pay, providing flexibility in work arrangements.
5. Probationary Period Limitations
The probation period for employees must be clearly specified in the employment contract.
It cannot exceed 180 days under any circumstances.
6. Notice Period for Open-Ended Contracts
- Employees must give a 30-day notice before resigning.
- Employers must provide a 60-day notice before terminating an open-ended contract.
7. Automatic Resignation Approval
If an employer does not respond to an employee's resignation request within 30 days, the resignation will be automatically considered accepted.
Impact of These Amendments on the Saudi Labor Market
These reforms align with Saudi Vision 2030 by promoting job security, economic growth, and private sector investment. The updated labor law is expected to:
✔️ Attract more skilled workers to the Saudi job market.
✔️ Ensure greater job stability and contractual transparency.
✔️ Improve work-life balance for employees, particularly working mothers.
✔️ Boost employer accountability and prevent workplace discrimination.
These regulatory updates signal Saudi Arabia’s commitment to modernizing its labor market, making it more competitive and aligned with global employment standards.
