Saudi Arabia’s New Labour Law Changes Taking Effect This Month

As part of a series of significant labor sector reforms intended to uphold contractual rights and improve the working environment, Saudi Arabia will extend maternity leave for working women from 10 weeks to 12 weeks beginning this month.

In order to strengthen family bonds, the kingdom’s Ministry of Human Resources published the modifications which provide that a Saudi Arabian employee is entitled to five days of paid leave in the event of the death of their spouse. In order to promote family stability, the employee is also entitled to five days of paid leave following marriage.

Additionally, the notice period for ending an employment contract with no set expiration has been changed to 30 days for the employee and 60 days for the employer.

The most recent modifications define overtime hours such that any work completed on holidays and Eid (Muslim holidays) is regarded as overtime hours and guaranteeing that employees are paid for their labor during these times. An additional modification limits the trial period’s duration to 180 days.

The modifications also require the employer to refrain from discriminatory hiring practices based on social rank, ethnicity, color, sex or disability in order to uphold the values of justice and equality. Additionally since these modifications also aim to strengthen labor market regulation, there are penalties for engaging in the practice of hiring workers without a license.

Saudi Arabia significantly improved its sponsorship system in 2020 when it announced significant labor reforms. The next year saw the implementation of measures that permit employment mobility and control the granting of exit and re-entry visas for foreign workers without the consent of their employers.