Saudi Arabia’s labor market is on… for change as new amendments to the Labour Law to be implemented in February 2025.
Allowances, which were spelled in M/44 Royal Degree and also promulgated in the Umm al-Qura official gazette for August 23, 2024, represent one way through which the Kingdom is seeking to have been seeking to advance its employment law regulations.
Analysts state that these changes are the other examples of the developing trend throughout the Gulf Cooperation Council states where countries liberalize their labour legislation to boost talent. Joanna Matthews-Taylor an experienced partner at Baker & McKenzie UAE noted on these reforms saying: “These are the recent trend of reforms going on in the region; the new provisions aimed at the employees are intended to help the nationals retain their competitive status in the global market.”
Here are the key changes that will impact employees and employers in Saudi Arabia:
1. Extended Maternity Leave
It is evident that the period of maternity leave has been doubled from 10 weeks to 12 weeks thus allowing the mothers to adequately attend to the needs of their newborn babies. The new law proposes that parents have six weeks of leave after the birth of the child and the rest for six weeks may be taken at any time as alongside demystifying this law, Rebecca Ford, a partner with Morgan, Lewis & Bockius offers.
2. Today: Sibling Bereavement
In the same law, there is now a three days paid funeral leave granted on the events of a sibling’s death. This described in the Article 113 improves the general program of compensation for employees.
3. Clarity on Probationary Periods
As to the probationary periods, the recent amendment of Article 53 recently increases the probationary periods that could be served initially to up to 180 days. This change provide more freedom as well as openness for every employer and employee since they can now scrutinize the compatibility of the employment relationship.
4. Flexible Overtime Options
Reduce in the monetary overtime payment can be compensated by paid time off, which means more flexibility in working relations. The regulations will provide further information on how this provision will be effected.
5. Simplified Employee Resignation Process
The following effect will now be realized by employees; at least in terms of clarity – employees now know how to resign before termination of contract. Tenders will be immediate upon acceptance by the employer or after the employer fails to reply within 30 days. Employers are allowed to refer the resignation of the employee up to 60 days, making both parties to have more time.
6. Increased Employer Responsibilities
Employers now have the responsibility to ensure that they nessite to provide accommodation and means of transport to their employees or to afford to pay nominal allowances for the same. This argument enhances Article 61 to improve the employer’s responsibilities to enhance the social provision that meets the minimal needs of the workers.
The amendments also speak on employment anti discrimination, meaning that employers have to provide equal employment chances with no discriminature based on race, gender, age or disability.
7. Contract Terms for Foreign Nationals
As of now, any foreign employees hired need to have limited-term contracts and if the length of the contract is not specified this will be considered to commence from the actual start date. Such change offer more clear signs for the employees and reduce the difference between the work permits and employment relations.
More Regulations Expected
Information concerning the additional measures for the fulfillment of the above mentioned amendments will be announced by the Ministry of Human Resources and Social Development prior to the enforcement of the law. Such changes are supposed to shed more light on a number of provisions and ease the latest provisions’ incorporation into the existing laws.
