In brief
On 6 August 2024, the Council of Ministers approved amendments to the Saudi Labor Law (the “Amendments“) which will come into force 180 days from publication of the Royal Decree in Umm Al Qura (the Official Gazette) which we expect within a fortnight.
The Ministry of Human Resources and Social Development (“MHRSD“) circulated proposed amendments to these provisions for public consultation in 2020, and again in 2021. Over 1,300 participants, including private and government entities, and human resources specialists commented on the proposed amendments through surveys, workshops and consultative meetings. With wide labor market input, and extensive benchmarking studies of other countries’ labor laws and global practices, the Amendments aim to further align with Saudi Arabia’s Vision 2030 by creating a more attractive work environment for employees; enhancing job security; protecting both parties’ rights; developing human capital; and promoting training opportunities, among others.
The Amendments refer to the Labor Law’s Implementing Regulations so we expect that the Minister of the MHRSD will issue amendments to, or new Implementing Regulations to address the recent changes on or before the date the Amendments will come into force.
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