The Recent Amendments to the Saudi Labor Law 2025

The Ministry of Human Resources and Social Development of the Kingdom of Saudi Arabia has recently approved amendments to the Saudi Labor Law, which came into force on February 18, 2025. These amendments are designed to enhance job stability, improve the efficiency of the labor market, meet the private sector’s needs, support economic growth, create new job opportunities, increase the private sector’s contribution to development, and expand employee vacation entitlements.

The amendments involved changing 38 articles of the current Labor Law, repealing 7 articles, and introducing 2 new articles. The primary objectives of these amendments are to protect employees’ rights, improve the work environment, foster competitiveness in the workplace, support working women, and align with Saudi Vision 2030’s goals of creating a more flexible labor market.

The most prominent amendments to the Saudi Labor Law included the following:

1. Resignation Definition and Employee Rights: A precise definition of resignation has been added, along with provisions guaranteeing employees’ rights and ensuring fairness and equality in the workplace.
2. Leave Entitlements: A new three-day leave has been introduced in the event of the death of a sibling. Additionally, maternity leave has been updated to a mandatory six weeks’ post-childbirth, with another six weeks that can be distributed as needed. The Amended Labor Law also stipulates that maternity leave may begin up to four weeks before the expected date of birth.
3. Overtime Compensation: Employers now have the option to compensate overtime hours with vacation days, provided they obtain the employee’s consent.
4. Notice Period for Termination: The amendments modify the notice period for terminating an indefinite contract. Employees must give at least 30 days’ notice before resigning, while employers must give 60 days’ notice if they terminate the contract.
5. Equal Opportunities and Non-Discrimination: The Amended Labor Law emphasizes the importance of equal opportunities for job applicants and current employees and prohibits discrimination in the workplace.
6. Housing and Transportation Benefits: Employers are now required to provide employees with housing or a housing allowance and transportation or a transportation allowance.
7. Probation Period: The probation period has been extended to 180 days, during which either party can terminate the contract without limitations.
8. Labor Contract Documentation: The amendments stressed on the importance of properly documenting labor contracts, as per the regulations set by the Ministry.

Therefore, the amendments to the Saudi Labor Law represent a significant step toward improving the labor environment in the Kingdom since they align with the goals of Saudi Vision 2030 by creating a more flexible and competitive workforce, supporting economic growth, and providing better job opportunities for Saudi citizens.

At SHURA, we offer comprehensive legal services to help you achieve full compliance with the new Saudi Labor Law amendments for 2025, ensuring your business aligns with the latest regulations. Our services include reviewing and updating employment contracts and internal policies, designing updated leave policies in line with the new amendments, and providing tailored consultations on resignation, leave entitlements, and overtime compensation. We also assist in developing effective strategies for hiring Saudi nationals and promoting women’s participation in the workforce, supporting the goals of Saudi Vision 2030. Additionally, we offer change management solutions, including providing housing or allowances, transport benefits, and ensuring equal opportunities and non-discrimination.

Let us help you navigate these changes smoothly and protect your business and employees—contact Nehal Akkad, Associate Lawyer, at [email protected] for expert legal advice that ensures your success under the new regulations!