Saudi Arabia Approves Labor Law Amendments
Key changes include expanded provisions on vacations and labor contracts, new definitions for resignation and assignment, revised grievance procedures, and penalties for unlicensed employment practices.
The Saudi Council of Ministers has approved amendments to the Labor Law, aiming to improve the work environment and support sustainable development in line with Saudi Vision 2030.[1]
The Ministry of Human Resources and Social Development announced changes to 38 articles of the Labor Law, including the removal of seven articles and the addition of two new ones.
The amendments will take effect 180 days after publication in the official Gazette. They focus on improving job stability, protecting contractual rights, developing workforce skills, and increasing job opportunities for Saudi citizens.
Key changes include expanded provisions on vacations and labor contracts, new definitions for resignation and assignment, revised grievance procedures, and penalties for unlicensed employment practices. Employers will also need to establish policies for employee training and qualification. Amendments also address maritime work.
The revisions are based on research and feedback from over 1,300 participants via the Istitlaa survey platform, as well as consultations with private sector entities, government agencies, and human resources experts.
In July, The Saudi General Organization for Social Insurance (GOSI) provided details on the Council of Ministers' decree that introduces a New Social Insurance Law applicable exclusively to new employees. This new law is for those joining the public and private sectors without prior contribution periods under the existing Civil Pension or Social Insurance laws.
