August 8, 2024

Major Revisions to Saudi Arabia’s Labor Law

Abdullah Al Alami
Saudi Economist
August 8, 2024

The new revisions encompass 38 articles, removing seven articles and adding two new articles to the law. The revisions align with the Saudi employment market strategy and international agreements ratified by the Kingdom.

The revisions were designed to:

-       Contribute to achieving sustainable development

-       Increase job prospects for citizens, foster job stability, and prioritize employee rights

-       Aid small and medium enterprises in creating more job opportunities for citizens

-       Cultivate a more attractive work environment

-       Improve the labor market in the Kingdom, and develop systems and regulations to support the market, production, and service sectors

-       Preserve the rights of all parties to employment contracts

-       Develop human resources

-       Encourage employers to formulate a dedicated policy for employee training

-       Expand provisions on vacations

-       Add new definitions and specify procedures for “resignation” and “assignment

-       Amend worker grievance procedures

-       Introduce penalties for unlicensed worker employment

-       Provide an appropriate legislative environment