Saudi Arabia has introduced significant updates to its Saudi labor laws, with 47 amendments aimed at improving workers’ rights and clarifying employment conditions. These changes, effective from February 2025, impact areas such as leave policies, contract renewals, notice periods, probation durations, and overtime compensation. Whether you’re an employee or an employer, it’s important to understand these updates to ensure compliance and fairness in the workplace.
Let’s dive into the key amendments and what they mean for you.
1. Death Leave
Previously, employees were given just one day of paid leave if a sibling passed away. Now, the law provides three fully paid days to grieve the loss of a brother or sister.
This change recognizes the importance of family and ensures that workers have adequate time to handle personal matters during such difficult times.
2. Longer Maternity Leave
Working mothers in Saudi Arabia—both locals and expatriates—will now receive 12 weeks of fully paid maternity leave, an increase from the previous 10 weeks.
This amendment is a big step forward for women in the workforce, supporting a healthier work-life balance and encouraging greater female participation in employment.
3. Fixed-Term Contracts for Expats: More Clarity
If you’re an expatriate working in Saudi Arabia, this is a major change you should know about.
- All expat contracts must now be fixed-term.
- If no duration is mentioned, the contract will automatically be considered valid for one year from the start date.
- If there’s no renewal clause in the contract, it will automatically renew for one more year.
Previously, contracts were often extended only until an expatriate’s Iqama (residency permit) expired. This update ensures greater job security and transparency for foreign workers.
4. Notice Periods in Fixed-Term Contracts
The new law also clarifies notice periods for resignations and terminations:
- If an employee wants to resign, they must give at least 30 days’ notice (if no notice period is mentioned in the contract).
- If an employer wants to terminate a contract, they must provide 60 days’ notice (if the contract is silent on this).
This adjustment ensures fairness for both parties and allows enough time to transition smoothly.
5. Maximum Probation Period Set at 180 Days
The probation period in employment contracts can no longer exceed 180 days (6 months) under any circumstances.
This protects employees from being left in an uncertain job situation for too long and encourages companies to make timely decisions about permanent employment.
6. Overtime: Pay or Leave? You Decide!
Employees who work overtime now have an option:
- Get paid extra for the additional hours worked.
- Take equivalent paid leave instead.
This flexibility allows workers to manage their time better while ensuring they are fairly compensated.
Other Key Considerations
Beyond these major updates, it’s worth keeping in mind some broader Saudi labor reforms that have been introduced in recent years:
The Kafala System Reforms
In 2021, Saudi Arabia reformed the controversial Kafala (sponsorship) system. Some migrant workers or labor can now switch jobs without employer approval and request exit permits on their own. However, certain categories, such as domestic workers and farmers, are still not fully covered under these reforms.
Salary Deduction Rules
The law strictly regulates when and how an employer can deduct wages. Deductions are only allowed in specific cases, such as repayment of salary advances or penalties for misconduct. This protects workers from unfair salary cuts.
Contract Termination Rules
Employment contracts can be legally terminated under conditions such as:
- Mutual agreement
- Expiry of contract term
- Employee reaching retirement age
- Business closure
- Force majeure events
Both employees and employers should be aware of these regulations to handle terminations properly.
Resignation Without Notice (Article 81)
Employees can resign immediately—without serving notice—while still claiming full end-of-service benefits under certain conditions, such as:
- If the employer fails to meet contract obligations
- If the workplace is unsafe
- If the employer mistreats or assaults the employee
This ensures that workers are protected from abusive situations.
Conclusion
These amendments reflect Saudi Arabia’s ongoing efforts to modernize its labor laws and align them with international standards. Whether you’re an employer or an employee, understanding these changes will help you navigate the workplace better.
For more detailed information, it’s always a good idea to check with the Ministry of Human Resources and Social Development or seek professional legal advice if needed.
What do you think about these changes? Do they improve workplace conditions? Let us know your thoughts!