Major Amendments in Saudi Labor Law 2024: What You Need to Know

Saudi Arabia has made substantial changes to its Labor Law to improve workplace standards and align with its Vision 2030 goals.

These amendments aim to enhance employee benefits, ensure fair practices, and provide more flexibility for employers. Below is a detailed breakdown of these key amendments.

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Key Amendments in Saudi Labor Law

Enhanced Leave Benefits

• Bereavement Leave: Employees are now entitled to three fully paid days of leave upon the death of a sibling. This is an increase from the previous single day and reflects a commitment to supporting employees during personal losses.
• Maternity Leave: The maternity leave period has been extended from 10 weeks to 14 weeks, providing additional support for working mothers and promoting family well-being.

Adjustments to Employment Contracts

• Renewable Fixed-Term Contracts: Employers can now renew fixed-term contracts multiple times without automatically converting them to indefinite-term contracts. This change increases flexibility for both employers and employees.
• Extended Notice Periods: A mandatory 60-day notice period is now required for the termination of fixed-term contracts, offering both parties sufficient time for adjustments.

Updated Probation and Compensation Rules

• Extended Probation Period: The probation period has been extended to a maximum of 180 days, allowing employers more time to assess employee performance.
• Standardized Overtime Pay: Employees will now receive overtime compensation at 150% of their regular hourly rate, ensuring fair pay for additional work hours.

Anti-Discrimination Measures

• Prohibited Practices: Employers are explicitly banned from engaging in discriminatory actions based on race, gender, age, disability, or social status. These measures promote equality and fairness in the workplace.

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Implications for Employers and Employees

For Employers

• Compliance and Training: Organizations must update employment contracts, HR policies, and train teams to ensure adherence to the new regulations.
• Budget Adjustments: With increased benefits like maternity leave and overtime pay, employers may need to reevaluate their cost structures.

For Employees

• Improved Benefits: Employees gain better leave entitlements and financial security through enhanced compensation policies.
• Increased Job Security: Longer notice periods and anti-discrimination measures offer more stability and protection.

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Conclusion

The amendments to Saudi Arabia’s Labor Law mark a significant step toward a more equitable and modern labor market. Employers must ensure compliance to avoid penalties, while employees can look forward to a more supportive and secure work environment. These changes represent progress in aligning labor practices with international standards and the Kingdom’s Vision 2030.