The Ministry of Human Resources and Social Development (MHRSD) has announced that the amendments made to the Labour Law will be effective from February 19, 2025 onwards.
The amendments are aligned with Cabinet Decision No. (117) issued on 2nd February 1446H, pursuant to Royal Decree No. (44) dated 8th February 1446H. MHRSD stated, “The aim is to enhance job stability and improve labor market efficiency to meet the needs of the private sector.”
What are these labour laws amendments?
The amendments as approved by the Cabinet in August 2024, involves changing 38 articles of the system, removing 7 articles, and adding 2 new articles, all contributing to the development of contractual relationships between the parties to employment, ensuring their rights, and creating a more attractive and stable work environment, in line with the labour market strategy.
The amendments made in key labour law articles including Article 2, Article 199, Article 178, and Article 203 are:
- Introduction of new definitions & procedures: Provisions have been made to include definitions for "resignation" and "outsourcing," to clarify labor regulations, and the addition of procedures for resignation to govern resignation processes more clearly.
- Enhancement of job stability: Provisions are made to ensure job stability, particularly for Saudi citizens, and to protect the rights of all parties in contractual relationships.
- Support for Human Resource Development: The amendments focus on improving training opportunities for workers and increasing employment opportunities for Saudi citizens.
- Expansion of leave and contract chapters: There is a broader focus on enhancing regulations related to employee leave and employment contracts.
- Revised worker grievance process: Amendments provide an updated framework for handling worker grievances.
- Penalties: Stricter penalties are introduced for unlicensed recruitment activities.
- Employer training and qualification policies: Employers are now required to establish policies for training and skill enhancement of workers.
- Changes to the Maritime Labour Chapter: Significant amendments have been made to the regulations governing maritime labor.
“These changes aim to refine existing regulations, improve market sectors, and align with Saudi Vision 2030 by supporting the private sector, enhancing worker skills, and fostering sustainable development,” said His Excellency Eng. Ahmad bin Sulaiman Al-Rajhi, Minister of HRSD. Adding, “Amendments will contribute to creating a more attractive labour market, enhancing transparency, and preserving the rights of all parties in contractual relationships, while meeting labour market needs..also align with global best practices and trends.”
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MHRSD also clarified that the executive regulations and other related regulations will be issued simultaneously with the commencement of the amendments tomorrow, in accordance with the Cabinet Decision.