New amendments to the Saudi labor law

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-March 6, 2025
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The Saudi labor law, the official charter to preserve the rights of workers in Saudi Arabia. The kingdom of Saudi Arabia is known as one of the most important work and livelihood destinations in the world, where millions of workers from many nationalities work, and in order to provide a safe and secure working environment was issued Saudi labor law In 2005, during the reign of King Abdullah bin Abdulaziz, and after that, the law underwent several updates, the most important of which was issued in August 2024.several articles were updated and deleted, and it became clear that the general trend in the kingdom is to provide a competitive and Fair Work Environment at the same time.

If you would like to learn a lot about the rights stipulated in the Saudi labor law and the categories to which it applies, as well as the duties of the employer, you can learn about this and more in this article.

Table of contentan overview of the Saudi labor lawwhich are the most prominent articles that have been introduced in the Saudi labor lawWhat categories does the Saudi labor law apply toWho are the categories excluded from the application of the labor codeThe rights of the worker in the Saudi labor lawthe duties of the employer in the Saudi labor lawthe number of working hours stipulated in the Saudi labor lawexceptions of the Saudi labor lawOrganization of labor contracts in accordance with the Saudi labor lawperiod of probationextirement of the contractemployment of the workerdiscipline procedures in the Saudi labor lawwhich are the cases of termination of the employment contract

Saudi labor law

He knows Saudi labor law It is the set of legislations and rules that regulate employment for Saudis and non-Saudis. It regulates labor contracts, the rights of the worker and the owner of the establishment and ways to provide a safe working environment that helps him to perform his tasks without job worries. The law was issued in 2005 and updated in 2024, and the updates included several articles that add a definition of types of employment that did not exist at the origin of the law, as well as determining the duration of the expatriate contract as well as the mechanism of organizing recruitment expenses and how to hire people with special needs.

What are the most important articles that have been introduced in the Saudi labor law

In August 2024 updates were released Saudi labor law، These updates have eliminated some articles and introduced others. it can be said that 38 articles have been amended, 7 articles have been deleted, and two new articles have been introduced. The most important updates of the labor law are as follows:

New legal definitions: Add definitions of the terms “resignation” and”attribution” to clarify what they are meant in the context of the system.
Resignation procedure: Define clear procedures for submitting and accepting a resignation, including the duration of the notice and the mechanism for accepting or postponing it.
Training and qualification of employees: Obliging employers to develop policies for training and qualifying Saudi employees in order to raise their skills and improve their performance.
Holiday adjustments: Expand the scope of accrued leave for employees, including marriage and death leave.
Protection of workers ' rights: Strengthen grievance mechanisms for employees and add penalties for engaging in employee recruitment activity without a license from the ministry.
Employment contracts: The law clarified the way to determine the beginning and end of the employment contract for non-Saudis even if this was not stipulated in the contracts.
Employees of determination: The law clarified the labor quorum, after which a certain percentage of people with special needs must be appointed
Trial periodThe law extended the probation period to 180 days and specified the ways of its termination by the employer and the employee.
Additional work: The law was keen to clarify how the wage is calculated in the case of overtime and also specified the allowed working hours daily and weekly.
Termination of the employment contract: The law specified the reasons for the termination of the employment contract with respect to the worker and also added bankruptcy as the reason for the termination of the contract by the employer.

It is expected that these amendments will contribute Saudi labor law In addition to creating more job opportunities for citizens and employees, which contributes to reducing job turnover and reducing labor disputes and disputes.

Categories to which the Saudi labor law applies

There are some categories to which the Saudi labor law applies within the Kingdom, and these categories are as follows:

Each worker works for the benefit of an employer and under his management or supervision for a fee.
Workers of government, public bodies and enterprises.
Workers of charitable institutions.
Workers in agricultural and pastoral enterprises that employ ten or more workers.
Workers who permanently operate or repair mechanical machines necessary for agriculture..
Foreign seasonal workers whose working period exceeds two months.
Working part-time ( working part-time ).

Who are the categories excluded from the application of the labor code

1. State employees and employees of public bodies: Employees subject to the Civil Service System or other regulations applicable to government employees, public bodies and institutions: but if there are no special regulations for them, some provisions of the labor law may be applied to them.

2. Members of the armed forces and national security: Military personnel working in military and security institutions.

3. Domestic workers and the likeSuch as private drivers, servants, cooks. And those whose relationship is regulated by special laws, such as the system of domestic labor.

4. Non-institutionalized agricultural and pastoral workers: If they work on small farms with no more than 10 workers.

5. Sea workers: Seafarers who work on Saudi ships less than 500 tons are subject to a special system called (marine work system).

6. Athletes, coaches and referees :Employees of sports clubs and federations, where they are governed by special regulations issued by the Ministry of sports.

7. Family members of the employer: Family members of the employer who work at his facility and are not paid.

8 . Seasonal employment : It is intended for non-Saudi workers who come to the kingdom to perform some work for a period not exceeding two months.

Worker's rights in Saudi labor law

The Saudi labor law has granted many rights to workers in a way that brought the law in line at that point with international conventions in the field of workers ' rights, the most important of these rights are:

1- Fair pay The law stipulates that the worker shall be paid a fair wage according to the number of years of his experience and efforts and obliges the employer to pay the wage at a specific time agreed between the worker and him.

2- Rest periods – The law stipulates that a worker must be given 30 minutes of rest for every 5 working hours .

3- Holidays: The law provided for granting the worker a day off per week, and the worker is granted 21 days of paid leave per year, and also increased the maternity leave for the Saudi employee to 12 weeks, as well as granting the male leave when his wife gave birth to a baby for 3 days.

4- Working environment: The law stipulates that the employer is obliged to provide a safe, safe and risk-free working environment.

5- Training and development: The law obliges the employer to periodically train employees to increase their productivity and develop their capabilities.

6- Disputes : The law allows the worker to sue the employer in case of any arbitrariness or violation of the terms of the contract financially or organizationally.

Duties of the employer in the Saudi labor law

1- Payment of remuneration: It is the wage that has been agreed upon in the employment contract and to which any other allowances or overtime pay are added in exchange for additional working hours.

2- Safety of the working environment: The employer is committed to removing any danger from the work environment that may affect the safety of the worker, as well as ensuring the psychological safety of the worker.

3- Working hours: The law provides for preventing the worker from being forced to work overtime and also granting him the due rest times.

4- The essence of the work: The law obliges the employer to adhere to the profession stipulated in the contract and the worker may not be employed in a profession that is fundamentally different from the worker's profession only with the written consent of the worker or under special conditions .

The number of working hours stipulated in the Saudi labor law

Text Saudi labor law Articles 98 to 100 regulate the number of working hours, whether on ordinary days or on special days of the holy month of Ramadan, and the law also clarifies the places of exception to those dates.

The worker may not actually be employed for more than 8 continuous hours per day.
The worker may not be employed more than 36 hours per week.
The number of working hours may be increased to 9 hours per day for some categories of workers or in some industries where the worker works non-continuously
The working hours may be reduced to 7 hours per day for a scientist in hazardous professions and a decision shall be issued by the minister.
Working hours in Ramadan for Muslim employees are reduced to 6 hours per day.
Employers in which there is a rotating work may increase the number of working hours per day provided that the total number of hours prescribed by law is adhered to.

Exceptions to the Saudi labor law

Vacation Saudi labor law - According to special conditions-the worker is obliged to perform additional working hours in case of certain conditions at work, for example:

Annual inventory, closing the budget, preparing for the season, preparing for sale at reduced prices, provided that these days annually do not exceed 30 days.
Preventing a possible accident or removing its effects if it occurs, avoiding the loss of perishable materials.
Operating to cope with unusual working pressure .
On holidays and occasions when a decision is issued by the minister.
In this case, the employer must pay the employee an additional wage for each working hour equal to 50% of his basic salary.In the event that the increase in working hours cancels the employee's weekly leave, the law prohibits the performance of work in return for money and the worker must be given another day of rest.

Regulation of labor contracts in accordance with the Saudi labor law

The law provides for the unification of the form of the employment contract-issued by the ministry - in accordance with the provisions contained in the labor law, with the possibility that the parties( the worker and the employer ) may add other items that determine the form of the contractual relationship between them, provided that they do not conflict with the provisions of the Saudi labor law.

Trial period:

- The law stipulates that if the worker is subject to the probationary period, the probationary period should not exceed 90 days and may be extended to 180 days, taking into account holidays and sick leave
A worker may not be placed in another probationary period except in another profession or other work.

Contract termination:

The employment contract is considered fixed-term at the end of its term, and the parties continued to perform the same tasks, the contract is considered indefinite and takes into account what the law provides for non-Saudis
If the employment contract is for the purpose of performing a certain work, it ends with the completion of the agreed work

Transfer of the worker:

The employer may not transfer the worker from my place of work without his written consent
In the event that the transfer requires a change of place of work in some necessary cases and due to casual circumstances and for a period not exceeding 30 days annually, the employer has the right to transfer the worker from the agreed place without requiring his consent to bear the costs of his relocation and accommodation.

Disciplinary procedures in the Saudi labor law.

Text Saudi labor law There are many disciplinary procedures that the employer may not and may not bypass, and these procedures start from

The alarm
The fine
Deprivation of the bonus or its postponement for a period not exceeding one year from the date of its approval
Deprivation of promotion for a period not exceeding one year from the date of its approval
Suspension from work with suspended pay
Dismissal from work ( in accordance with certain cases established by law)

Saudi labor law Many controls for the imposition of sanctions on employees by the employer may be established. Such controls are set out in articles 68, 69, 70, 71, 72 and 73 of the legal text.

What are the cases of termination of the employment contract

The law defines in Article 74 the circumstances under which the employment contract can be terminated either by the employer or by agreement of the parties, and these circumstances are as follows

One if the parties agree to terminate the contract provided that the worker's consent is in writing.
If the period specified in the contract has expired without the contract being renewed in a manner that complies with the provisions of the law.
In the case of indefinite contracts, one of the parties may terminate the contract provided that the other party is notified 60 days before the termination of the contract and the notification is in writing.
Reaching the retirement age, which is 60 years for males and 55 years for people, unless the parties expressly agree to continue working after this age due to force majeure, such as the bankruptcy of the owner of the establishment.

Closing the facility permanently.
Termination of the activity in which the worker is employed unless he agrees to start a new activity.

Compensation of the worker in case of termination of the employment contract

In order to ensure a smooth working environment and to increase the feeling of job security among workers, the law provides for the mechanism of worker's compensation in cases of termination of an employment contract as follows

1. In the case of an open-term contract, the worker is compensated with a wage of ١٥ one day for each remaining year in the contract

2. In the case of a fixed-term contract, the remainder of the contract period is paid to the worker ( his monthly wage * the number of months remaining in the contract)

In all cases, the worker's compensation should not be less than two months ' wages.

When is the employment contract terminated without remuneration or compensation for the worker

Vacation Saudi labor law - In some cases-that the worker is not awarded a bonus or compensation in the event of the following:

If the worker assaults the employer or one of his managers or subordinates during work or because of work.
If the worker does not fulfill his essential obligations stipulated in the employment contract or legitimate orders, the instructions announced by the employer.
If the worker has followed bad behavior or committed an act that violates honor or honesty.
If the worker deliberately inflicts a material loss on the employer, provided that the employer notifies the competent authorities within 24 hours from the time he learned of the occurrence of the act from the employee.
If it is proved that the worker has resorted to forgery of employment documents.

The worker is not given any remuneration upon termination of the contract at the testing stage.
If the worker is absent for more than 30 continuous days or 15 separate days during one year, he must be notified in writing before dismissal.

Termination of the employment contract without notice to the employer

The employee has the right to terminate the employment contract without notice to the employer while retaining all his rights in some cases, such as:

If the employer does not comply with the substantive obligations stipulated in the employment contract.
If it is proved that the employer deceived the worker during the contract about the terms and conditions of employment.
If the employer assigns the worker a task that is fundamentally different from what was agreed in the contract, taking into account what is stated in Article 60 of the Saudi labor law.
If there is a serious danger at the workplace that threatens the safety of the worker, provided that the employer is unaware of the existence of this danger.
If the employer or responsible managers offended the worker or his family.

It is worth noting that in the event that the termination of the contract was by the employer, he must be granted his dues no later than a week from the end of the last working day. If the termination is by the employee, he must be granted his dues within two weeks from the last working day.

Conclusion

In conclusion, the recent amendments to the Saudi labor law reflect the kingdom's commitment to provide a fair and transparent work environment that protects the rights of employees and ensures their comfort and stability. There is no doubt that these steps enhance the productivity of individuals and raise the efficiency of the labor market, which contributes to achieving sustainable business growth and pushing the Saudi economy towards achieving the goals of Vision 2030.