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Saudi Arabia announces key changes to labor law

RIYADH, August 7, 2024

Saudi Arabia's Ministry of Human Resources and Social Development has announced amendments to several articles of the labor law, approved by the Cabinet session today.
 
The ministry stated that these amendments aim to improve the labor market in Saudi Arabia, enhance job stability, protect the rights of all parties involved in employment contracts, develop human capital, promote training opportunities for workers, and increase job opportunities for Saudi citizens.
 
The new amendments include modifications to 38 articles, the removal of 7 articles, and the addition of 2 new articles to the labor law. These amendments support the ongoing development of existing regulations and laws to bolster the market, production, and service sectors. They provide a suitable legislative environment and support small and medium-sized enterprises (SMEs), aiming to create more job opportunities for citizens and achieve sustainable development goals, in accordance with the labor market strategy and the objectives of Vision 2030.
 
The amendments will contribute to creating a more attractive work environment for employees and achieving sustainable development, it said. 
 
These amendments also align with the Kingdom of Saudi Arabia's labor market strategy and its ratified international agreements, a Saudi Press Agency report said quoting the ministry.
 
The ministry indicated that the new amendments were made after an extensive study that included benchmarking against labor laws in various countries and examining global best practices. Over 1,300 participants contributed their opinions and suggestions on the proposed amendments to the labor law through a survey platform. 
 
Additionally, private-sector companies, relevant government entities, labor committees, and various human resources specialists and experts shared their views and advice through workshops and consultative meetings.
 
The amendments considered the interests of all parties involved in employment contracts and included expanded sections on leaves and contracts. Definitions for the terms "resignation" and "assignment" were added, along with an article outlining resignation procedures and modifying grievance procedures for workers. Penalties were introduced for engaging in worker recruitment activities without a license from the ministry.
 
The new amendments also stipulate that employers must provide a training and qualification policy to enhance workers' skills and improve their proficiency. Several amendments were also made to the section on maritime work.
 
The new amendments will come into effect 180 days after their publication in the Official Gazette. The ministry said more details of the amendments are available at the ministry's official website. 



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