The Kingdom of Saudi Arabia Labor Law (KSA Labor Law) was enacted by Royal Decree (M/51), dated 23/08/1426 H, corresponding to 27/09/2005 G. Recent amendments to the KSA Labor Law have been proposed on 02/02/1446 H corresponding to 06/08/2024 G. These amendments are set to take effect 180 days from publication in the official Gazette, in February 2025.

The amendments introduce several significant changes to the KSA Labor Law with the Implementing Regulations to the KSA Labor Law yet to be released. Key updates so far include additional definitions, expanded employer responsibilities, enhanced worker protections, and new regulations governing specific employment aspects. The amendments cover a broader range of employment activities, including outsourcing. Worker rights are more detailed in the amendments, including worker rights with respect to resignation, grievance procedures, leave entitlements in addition to contract terms, working conditions and training. Additionally, the amendments introduce a new framework for maritime employment contracts. Further clarifications are expected upon the release of the Implementing Regulations.

This note aims to provide an overview comparing a selection of the latest amendments to the KSA Labor Law with the current provisions in force. The comparison in the table below is categorised by type: addition, deletion, or other amendment using colour codes for clarity.

The above summary demonstrates the needs for Employers in the KSA to now update their employment contracts and handbooks, as well as policies and procedures in line with the new requirements. Some of the key recommendations are listed below.

For more detailed guidance on the remainder of their changes, and the new requirements for your company in KSA further please contact our KSA Employment team on: KSAEmploymentTeam@dentons.com.

Also see the Dentons Global Quarterly Employment review here for quarterly updates on KSA employment and law.

This article is also available in Arabic, click here to download.