Saudi Arabia Announces Key Labor Law Amendments To Improve Work Environment

The Saudi Council of Ministers on Tuesday approved key amendments to a number of articles of the Labor Law, which aim to create a more attractive work environment and contribute to achieving sustainable development in accordance with the goals of Saudi Vision 2030.

The Ministry of Human Resources and Social Development stated that the new amendments encompass 38 articles, deleting seven articles and adding two new articles to the Labor Law. These amendments are in line with the Saudi employment market strategy as well as international agreements ratified by the Kingdom. The ministry said that the new amendments will be effective after 180 days from the date of their publication in the official Gazette.

The amendments aimed to improve the labor market in the Kingdom, enhance job stability, preserve the rights of parties to the contractual relationship, in addition to developing human cadres, enhancing training opportunities for workers, and increasing job opportunities for citizens, Saudi local media reported. 

The amendments took into account the interests of all parties to the contractual relationship. These included an expansion of the item on vacations and labor contracts; adding a definition of the terms: resignation and assignment; adding an article specifying the procedures for resignation; amending the grievance procedures for the worker; and adding penalties for practicing the activity of employing workers without a license from the ministry. The new amendments also stipulate that the employer must formulate a special policy for the training and qualification of employees in order to raise their skills and improve their standard. A number of amendments were also made in the item on maritime work.

The ministry explained that the new amendments were made after an extensive study based on standard comparisons with labor laws in several countries and a study of best global practices, with the involvement of more than 1,300 participants who offered their opinions and suggestions to the proposed amendments to various articles of the Labor Law via the Istitlaa survey platform, run by the National Competitiveness Center. This is in addition to sharing opinions and advice with private sector establishments, relevant government agencies, labor committees, and a number of specialists and experts in human resources through workshops and consultative meetings.

These amendments are formulated to reinforce the directive to develop existing systems and regulations that contribute to supporting the market as well as the production and service sectors, apart from providing an appropriate legislative environment, and support small and medium enterprises with the aim of creating more job opportunities for citizens and achieving sustainable development goals in accordance with the labor market strategy and the targets of Saudi Vision 2030. More details about the amendments of the Labor Law articles can be had from its official website, the ministry added.