The Saudi Arabian job market is undergoing significant changes with the introduction of new amendments to the Saudi Labour Law, set to take effect next February.
These amendments, outlined in Royal Decree M/44 and published in Umm Al Qura on August 23, 2024, encompass various changes to existing articles, the addition of new provisions, and the removal of several others. Legal experts have noted that these modifications align with broader regional trends in employment legislation. Joanna Matthews-Taylor, a partner at Baker McKenzie UAE, observes that the amendments introduce more employee-friendly provisions, reflecting a general shift across the Gulf region as countries compete to attract and retain top talent. Among the most notable changes is the extension of maternity leave from 10 to 12 weeks.
This adjustment allows new mothers additional time to bond with their newborns with six weeks mandated following the birth and the remaining six weeks to be allocated at the employee’s discretion, starting from four weeks prior to the expected delivery date. The amendments also introduce a new entitlement of three days’ paid bereavement leave in the event of a sibling’s death. The probationary period regulations have been clarified, with Article 53 now permitting parties to agree on a 180-day probationary period from the outset. This change offers greater flexibility and clarity in the employment process. However, the specifics regarding potential extensions and exclusions from the probation period are expected to be further detailed in the Implementing Regulations.
These amendments are part of a broader initiative to align Saudi Arabia’s labour laws with international standards and best practices, as outlined in Saudi Vision 2030. The Ministry of Human Resources and Social Development has emphasized that these changes aim to enhance job stability, protect employee rights, and clearly define employer obligations. The new regulations also mandate employers to establish training and qualification policies to enhance worker skills and performance, a move expected to boost productivity and ensure employees are well-equipped for their roles. Additionally, the amendments introduce clear definitions for “resignation” and “outsourcing,” and outline procedures for resignation, providing a more structured and transparent process for employees wishing to leave their positions.
To ensure compliance, the amendments introduce stricter penalties for employers who fail to adhere to the new regulations including fines and other sanctions. The changes also focus on supporting small and medium enterprises (SMEs) to create more job opportunities for citizens and achieve sustainable development goals, aligning with the labour market strategy and Saudi Vision 2030 targets. Furthermore, significant modifications have been made to the maritime labour chapter, addressing the unique needs and challenges of this sector and aiming to improve working conditions for maritime workers.
These new amendments are scheduled to take effect 180 days after their publication in the Official Gazette, providing a transition period for employers and employees to adjust to the new regulations. The Ministry of Human Resources and Social Development encourages interested parties to review the full details of the Labor Law amendments on the Ministry’s official website.
