Saudi Arabia has announced major changes to its Labor Law to improve worker rights, job security, and workplace conditions. These reforms will be effective after 180 days from the date of their publication in the official Gazette.

The Ministry of Human Resources and Social Development has announced changes to 38 articles of the Labor Law, including the removal of seven articles and the addition of two new ones. These reforms are designed to enhance the labor market, improve job stability, protect contractual rights, develop human resources, expand training opportunities, and create more job opportunities for citizens.

The amendments to the Labor Law include expanded provisions on vacations and labor contracts, new definitions for resignation and assignment, updated grievance procedures, and penalties for employing workers without a license. Additionally, employers are now required to establish training policies to enhance employee skills.

The amendments were developed following extensive studies and consultations, engaging over 1,300 participants through the Istitlaa survey platform and incorporating feedback from private sector establishments, government agencies, labor committees, and human resources experts.

These reforms aim to support the market, production, and service sectors, provide a conducive legislative environment, and bolster small and medium enterprises. The ultimate goal is to create more job opportunities and achieve sustainable development objectives in alignment with Saudi Vision 2030.

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