KSA enhances worker benefits; Introduces new leaves

The Ministry of Human Resources and Social Development has explained the amendments made to the Labour Law as approved by the the Saudi Council of Ministers to make the job market more attractive and to foster sustainable development. 

The amendments involved revisions to 38 articles, the deletion of seven, and the addition of two new articles. are aimed at enhancing the work environment and aligning with Saudi Vision 2030. 

MHRSD said the new rules are crafted to boost job stability, preserve the rights of both employers and employees, and improve the overall employment landscape. Additionally, the changes are expected to develop Human Resources, enhance training opportunities, and create more jobs for Saudi citizens.The authority stated, “...amendments will contribute to creating an attractive and distinctive labour market in line with global best practices, in addition to generating more job opportunities for citizens and workers. This will help reduce employee turnover and minimise labour disputes and conflicts. Moreover, these amendments will facilitate opportunities for development, creativity, and the protection of rights for both parties in the contractual relationship, as well as the development of human resources. Additionally, these amendments will also enhance the encouragement of foreign investment and attract the talents needed in the labour market.”

Among the most impactful changes is the extension of maternity leave from the previous period of ten weeks to a generous twelve weeks now, offering new mothers much-needed time and support to bond with their newborns. In addition to this, the new law introduces paid leave as compensation for overtime work, recognising the dedication of employees who go above and beyond their regular hours. Take a look at the key reforms: 

• Prohibiting employers to violate principle of ‘EW-EP’: The reform has been added to employer's obligations to not engage in any act that would nullify or weaken the implementation of the principle of equal pay for equal work or undermine its application in employment and professional setup.
• Paid bereavement leave for Employees: Adding a paid leave of three days for employees in the event of the death of a relative (including for the loss of a sibling) or newborn child, providing workers with the necessary time to grieve and support their families.
• Extended maternity leave: Increasing maternity leave for female workers to 12 weeks.
• Leave for overtime work: The reform adds the possibility of workers to agree to take paid leave instead of receiving overtime work hours pay. 
• Rights of trainees: Adding the right of the trainee and the employer to terminate the training contract.
• Renewal of contracts: Determining the mechanism for renewing the contract for non-Saudis. If the contract's term is not specified, the contract remains valid.
• Introduced trial period in worker contracts: It is required that the trial period in the labour contract does not exceed a total of six months in all cases, including extensions.
• Defined resignation: Adding definitions for resignation, as well as, abandonment and adding an article that clarifies the resignation procedures.
• Contract termination related to bankruptcy: Adding a clause regarding the termination of the employment contract associated with bankruptcy procedures, stating that the contract ends upon a final or irreversible decision or judgement by the competent court regarding bankruptcy.
• Notice period for contract termination: Amending the notice period for terminating the contract for indefinite periods to 30 days if the termination is initiated by the employee and 60 days if the termination is initiated by the employer.

Download complete guide on the new amendments here

The amendments also bring clarity to probationary periods, resignation procedures, and contract termination protocols, particularly in bankruptcy cases, ensuring a more transparent and fair process for all parties involved. They address key areas such as equal opportunities, ensuring that all employees, regardless of background, have fair job and career advancement opportunities. Additionally, the amendments include increased flexibility for expatriates, reflecting the country’s diverse and evolving workforce.

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The ministry has incorporated feedback from over 1,300 participants through the Istitlaa survey platform, along with consultations from various industry experts. The amendments, which are in line with global standards and Saudi Arabia's commitment to creating a progressive, inclusive, and well-regulated labour market, will come into effect 180 days after their publication in the official Gazette.