On August 6 2024 the Ministry of Human Resources and Social Development announced changes to the Labor Law that will be effective after a 180 days grace period. Given their importance and the fact that official communication is exclusively in Arabic, we at palm.hr took the liberty of translating all amendments and make them available to any English speaking professionals that want to dig deeper.

You can download the detailed translations with highlights on what has changed below!

Having had a first look, the major changes can be summarized as follows:

Clarifications on contract durations for expatriates (Article 37)

As a Non Saudi employee you are supposed to have a limited term contract and in the absence of any specified term your work permit validity serves as a “contract” end date. This has now been changed in a way that Expats are always on 1 year terms that start with their actual hire date.

Training of Saudi Employees (Articles 42-48)

The previous version of the Labor Law focused on the need to train Saudi employees to replace foreign workers. Whereas the need and the framework for training the Saudi workforce has been further elaborated, the aspect of replacing the Expatriate workforce has been removed.

Equal Opportunity (Article 61)

One of the most striking additions to the law is the introduction of anti discrimination clauses to assure equal treatment regardless of gender and race.

Clarifications on terminating indefinite contracts (Article 75)

Whereas previously a minimum notice period of 60 days had to be observed by both parties, employees can now end their employment with a 30 days notice period (provided they are on a monthly salary cycle)

Adjustments to overtime policies (Article 107)

Until now the labor law only allowed for encashment of worked overtime (subject to a 50% markup on the hourly salary). With the amendment it is now possible to convert overtime into prorated vacation days

Special Leave Adjustments (Articles 113 & 151)

Grievance leave has been extended to allow for 3 days of leave following the death of a sibling. Maternity leave has been increased from 10 to 12 weeks.

To check out the English version of all amendments in detail, feel free to download the pdf below!