Saudi Labour Law Amendments 2025: What Employees and Employers Must Know
As the Kingdom of Saudi Arabia moves into a new era of employment regulation, several significant amendments to the Saudi Labour Law are coming into force as early as today or tomorrow. These changes have been detailed on the SaudiHires amended labour law page, and they affect many aspects of the employer–employee relationship. In this article, we will explore the key changes, provide detailed comparisons between the previous and amended texts, and highlight what employees and employers should be aware of to ensure they are compliant with the law.
For full legal texts and further reading:
Amended Saudi Labour Law (English & Arabic)
Domestic Workers Law
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Overview of the Amendments
The recent amendments cover a wide range of issues, including:
- Work permit renewals and Saudization requirements (Article 35)
- Contract duration for non-Saudi workers (Article 37)
- Restrictions on working for one’s own account and inter-employer employment (Article 39)
- Employer obligations to train and qualify Saudi workers (Articles 42 & 43)
- Requirements regarding employment contract attestation (Article 51) and model forms (Article 52)
- Changes to the probation period (Article 53)
- Employer Obligations (Article 61)
- Revised procedures for penalty notifications (Article 72)
- Enhanced termination conditions and resignation processes (Articles 74, 75 & 79)
- Modifications to overtime compensation (Article 107)
- Adjustments to leave entitlements, including paternity leave and the addition of a new leave benefit (Article 113)
- Extension of maternity leave (Article 151)
These amendments are designed to create a more structured, transparent, and equitable labour environment in Saudi Arabia. Below, we break down each major amendment with detailed explanations and compare the changes to the previous wording.
Detailed Analysis of Key Amendments
Article 35: Work Permit Renewals & Saudization Requirements
Before Amendment:
The ministry may refrain from renewing the work permit when the employer violates the criteria for the resettlement of jobs (Saudization) established by the Ministry
After Amendment:
The Ministry, at its discretion, may refrain from renewing a work permit if the employer violates the standards for Saudization of jobs set by the Ministry, or any other requirements or regulations stipulated in the bylaws. The bylaws shall specify the procedures to ensure that the worker is not adversely affected by the non-renewal of the work permit, including the possibility of transferring the worker’s services to another employer without the approval of the violating employer.
What This Means:
Employers must now ensure full compliance with not only Saudization quotas but also all stipulated conditions within the bylaws (Regulations). The added clause about transfer procedures means that even when a work permit is not renewed, protections exist for the affected worker.
Article 37: Employment Contract Duration for Non-Saudis
Before Amendment:
The employment contract for non-Saudis shall be written and of a fixed term. If the contract does not specify the duration, the duration of the work permit shall be deemed to be the duration of the contract.
After Amendment:
The employment contract for a non-Saudi worker must be written and for a fixed term. If the contract does not specify its duration, the duration shall be deemed to be one (1) year from the date the worker actually starts work. If the work continues after the expiration of this duration, the contract shall be considered renewed for a similar period.
Implications:
For non-Saudi employees, if a contract omits a specified term, it will default to one year from the commencement date. Employers should explicitly state the term in all contracts to avoid any unintended automatic renewals.
Article 39: Restrictions on Working for One’s Own Account
Before Amendment:
1) It is not permissible—without following the prescribed legal rules and procedures—for an employer to allow their worker to work for others, nor is it permissible for a worker to work for another employer. Similarly, it is not permissible for an employer to employ a worker who is not under their sponsorship. The Ministry of Labour shall oversee the inspection of establishments, investigate violations identified by its inspectors, and subsequently refer such cases to the Ministry of Interior to enforce the prescribed penalties.
2) It is not permissible for an employer to allow their worker to work for their own account, nor is it permissible for a worker to work for their own account. The Ministry of Interior is responsible for identifying, detaining, deporting, and penalizing violators, including those working for their own account (illegal workers), street workers, those absent from work (runaways), as well as the employers, facilitators, and sponsors of such workers, their transporters, and anyone involved in the violation. The prescribed penalties shall be applied to all parties involved.
After Amendment:
It is not permissible—without following the prescribed legal rules and procedures—for an employer to allow their worker to work for others or for the worker to work for their own account. Similarly, a worker may not work for another employer or for their own account, and an employer may not employ a worker who is not under their sponsorship. The Ministry shall conduct inspections of establishments, identify violations of this law, and take the necessary measures to enforce the prescribed penalties. Cases that fall under the jurisdiction of the Ministry of Interior shall be referred to it to take the necessary actions in accordance with the regulations. Additionally, in the event that the Ministry of Interior identifies violations related to the regulations under its jurisdiction, it shall provide the details of violating employers to the Ministry of Human Resources and Social Development to enforce the penalties stipulated under this law.
Key Takeaway:
The amendment clarifies and expands the prohibition against self-employment activities without proper authorization. Employers and employees alike need to strictly adhere to these rules, as penalties can now be imposed more robustly via a coordinated approach between ministries.
Article 42: Employer’s Training and Qualification Policy
Before Amendment:
Every employer should prepare his Saudi workers and improve their level of technical, administrative, professional and other works, with the aim of gradually bringing them into the work of non-Saudis. He shall prepare a record in which the names of the Saudi workers who have been replaced by the non-Saudis shall be recorded in accordance with the conditions and rules prescribed by the Regulations.
After Amendment:
Every employer shall establish a policy for training and qualifying their Saudi workers to enhance their skills and improve their competency in technical, administrative, professional, and other fields. The bylaws shall determine the relevant provisions in this regard.
What Has Changed:
This change shifts the focus from an informal “preparation” process to a structured training and qualification policy. Employers must now create comprehensive training programs as future Regulations will provide detailed requirements and guidelines.
Article 43: Training Quotas
Before Amendment:
Without prejudice to the provisions of concession agreements and other agreements that include specific terms and rules for training and qualification, every employer who employs fifty or more workers must annually train or qualify at least 12% of their Saudi workers for their job roles. This percentage includes Saudi workers who are pursuing their studies if the employer is covering the cost of their education. The Minister may increase this percentage for certain establishments as determined by a decision issued by the Minister.
After Amendment:
Without prejudice to the terms and conditions stipulated in franchise agreements and other agreements regarding training, qualification, and skill enhancement, every employer shall qualify or train in their work the percentage of their Saudi employees determined by a decision of the Minister. This percentage includes Saudi employees who are completing their studies if the employer bears the cost of their education. The bylaws shall specify the relevant standards and general provisions in this regard.
Implications:
The fixed percentage and threshold of 50 employees have been removed. Instead, a ministerial percentage—yet to be defined—is now applicable to all employers, meaning companies must be ready to adjust their training programs as soon as further guidance is issued.
Article 51: Attestation of Employment Contracts
Before Amendment:
The employment contract must be written in two copies, with each party retaining one copy. The contract shall be considered valid even if not in writing. In such cases, the worker alone may prove the existence of the contract and their rights arising from it by all means of evidence. Either party may request that the contract be documented in writing at any time. For government employees and public institution workers, the decision or appointment order issued by the competent authority shall serve as the employment contract.
After Amendment:
The employment contract must be written in two copies, with each party retaining a copy. It must be attested in accordance with the relevant legal provisions and as stipulated by the bylaws. The contract is deemed valid even if it is not written. In such cases, the worker alone may prove the existence of the contract and their entitlements arising from it through all forms of evidence. Either party may request that the contract be put in writing at any time. For government workers and employees of public institutions, the appointment decision or order issued by the competent authority shall serve as the equivalent of a contract.
Why This Matters:
The requirement for attestation reinforces the legal validity of employment contracts. Employers must now ensure that all contracts are documented or attested as per statutory guidelines to avoid disputes regarding contractual obligations.
Article 52: Model Forms for Employment Contracts
Before Amendment:
1. Subject to the provisions of Article (37) of this Law, the Ministry shall establish a uniform form for the employment contract, which shall include: the name and location of the employer, the name and nationality of the worker and what is necessary to prove his identity, residence address, including the benefits and allowances, the type and location of the work, the date of enrolment, and the duration of the work, if fixed.
2. The contract of employment shall be in accordance with the form referred to in paragraph (1) of this article. The parties to the contract may add other items to it, in a manner not inconsistent with the provisions of this Law and its regulations and the decisions issued in implementation thereof.
After Amendment:
1. Taking into account the provisions of Article (37) of this Law, the Ministry shall establish a unified template for each type of employment contract, which shall essentially include: the name and location of the employer; the name, nationality, identification details, and residence address of the worker; the agreed-upon wage, including benefits and allowances; the type and location of work; the date of commencement; the duration of the contract if it is for a fixed term; and the fundamental rights and obligations of each party.
2. Unchanged
Effect on Practice:
This change means that there will soon be multiple model forms tailored to different employment scenarios. Employers should familiarize themselves with these forms and adopt them as needed to ensure compliance. The amendment also adds the rights and obligations text.
Article 53: Changes to the Probation Period
Before Amendment:
If the worker is subject to a period of probation, this shall be expressly stated in the contract of employment and shall be clearly defined so that it shall not exceed ninety days, and a written agreement between the worker and the employer may extend the period of the trial, but not more than one hundred and eighty days. Period of trial excludes Eid al-Fitr and Eid al-Adha leave and sick leave and each party has the right to terminate the contract during this period unless the contract includes a text giving the right to terminate for only one of them.
After Amendment:
If the worker is subject to a probationary period, this must be explicitly stated in the employment contract, and the duration must be clearly defined, provided that the total period does not exceed one hundred and eighty (180) days under any circumstances. The bylaws shall specify the relevant provisions, including those concerning leaves that are not counted within the probationary period. Either party has the right to terminate the contract during this period.
Takeaway:
Employers no longer need to secure a written extension agreement to reach the 180-day maximum. However, the specifics—such as leave exclusions—will be governed by forthcoming Regulations. HR policies and contracts must be updated accordingly.
Article 61: Employer Obligations
Before Amendment:
In addition to the duties stipulated in this Law and the regulations and decisions issued in pursuance thereof, the Employer shall:
1. Refrain from employing the worker as a slave and not to hold without a judicial authority the remuneration of the worker or part thereof, to treat his workers with due respect, and to refrain from any statement or act that prejudices their dignity and religion.
2. The workers shall be given the necessary time to exercise their rights provided for in this Law without the deduction of wages for such time, and may regulate the exercise of this right in a way that does not interfere with the course of work.
3. To facilitate the staff of the competent authorities every task related to the application of the provisions of this system.
After Amendment – adds 3 more paragraphs 4, 5 & 6:
4. To refrain from any actions that would nullify or weaken the application of equal opportunities or equal treatment in employment and occupation, whether through exclusion, differentiation, or preference among job applicants or workers based on race, colour, gender, age, disability, marital status, or any other form of discrimination.
5. To provide adequate housing for workers. The employer may substitute this with an appropriate cash allowance paid to them along with their wages.
6. To provide suitable transportation for workers from their place of residence to the workplace. The employer may substitute this with an appropriate cash allowance paid to them along with their wages.
Impact:
Stronger protections surrounding discrimination and transport and housing assistance.
Article 72: Notification for Imposed Penalties
Before Amendment:
The worker shall be informed of the decision to sign the penalty in writing. If he refuses to receive or is absent, the communication shall be sent by registered letter to the address indicated in his file. The worker shall have the right to challenge the decision to impose the penalty on him within fifteen days and submit an objection to the Labour Dispute Settlement Authority, and shall issue its decision within thirty days from the date of registration of the objection to it.
After Amendment:
The worker must be notified in writing of the decision to impose a penalty. If the worker refuses to receive it or is absent, the notification shall be sent via registered mail to the address listed in their file. The worker has the right to appeal the decision in writing to the competent authority within the employer’s organization within thirty (30) days, excluding official holidays, from the date they are notified of the decision. If the appeal is rejected or no decision is issued in writing within fifteen (15) days of its submission, the worker has the right to challenge the penalty decision before the labour courts within thirty (30) days, excluding official holidays, from the date of the rejection of the appeal or the expiration of the time limit for a decision on the appeal, whichever is earlier.
Impact:
This amendment provides a clearer timeline and procedural steps for workers challenging penalties, thus offering a fairer system for dispute resolution.
Article 74: Termination of Employment Contracts
Before Amendment:
An employment contract shall terminate in any of the following cases:
1. If both parties agree to terminate it, provided the worker’s consent is in writing.
2. If the fixed term specified in the contract expires, unless the contract has been explicitly renewed in accordance with the provisions of this law, in which case it continues until the new term ends.
3. At the will of either party in indefinite-term contracts, in accordance with Article (75) of this law.
4. Upon the worker reaching the retirement age—sixty (60) years for male workers and fifty-five (55) years for female workers—unless both parties agree to continue working beyond this age. The retirement age may be reduced in cases of early retirement specified in the workplace regulations. If the employment contract is for a fixed term extending beyond the retirement age, the contract shall terminate upon the expiration of its term.
5. In cases of force majeure.
6. Permanent closure of the establishment.
7. Termination of the activity in which the worker is employed, unless otherwise agreed.
8. Any other case stipulated by another law.
After Amendment:
3. (bis) and 7. (bis) added
1. If both parties agree to terminate it, provided the worker’s consent is in writing.
2. If the fixed term specified in the contract expires, unless the contract has been explicitly renewed in accordance with the provisions of this law, in which case it continues until the new term ends.
3. At the will of either party in indefinite-term contracts, in accordance with Article (75) of this law.
3. (bis) Resignation
4. Upon the worker reaching the retirement age—sixty (60) years for male workers and fifty-five (55) years for female workers—unless both parties agree to continue working beyond this age. The retirement age may be reduced in cases of early retirement specified in the workplace regulations. If the employment contract is for a fixed term extending beyond the retirement age, the contract shall terminate upon the expiration of its term.
5. In cases of force majeure.
6. Permanent closure of the establishment.
7. Termination of the activity in which the worker is employed, unless otherwise agreed.
7. (bis) Issuance of a final decision or judgment by the competent court terminating the worker’s contract in any of the bankruptcy proceedings initiated under the bankruptcy law.
8. Any other case stipulated by another law.
For Employers and Employees:
These changes provide more clarity on termination rights and conditions. Employees must be aware of the resignation process, while employers need to update policies to reflect these new termination grounds.
Article 75: Notice Periods for Indefinite Contracts
Before Amendment:
If the contract is indefinite, either party may terminate it for a legitimate reason, which must be stated in a written notice sent to the other party before termination, with a notice period specified in the contract, provided it is not less than sixty (60) days if the worker is paid monthly, and not less than thirty (30) days for others.
After Amendment:
1. If the contract is indefinite and the wage is paid monthly, either party may terminate it for a legitimate reason, subject to the following:
a. If termination is initiated by the worker, they must provide written notice to the employer at least thirty (30) days prior to the termination date.
b. If termination is initiated by the employer, they must provide written notice to the worker at least sixty (60) days prior to the termination date.
2. If the contract is indefinite and the wage is not paid monthly, the party intending to terminate the contract for a legitimate reason—whether the worker or the employer—must provide written notice to the other party at least thirty (30) days prior to the termination date.
Implications:
This reduction in the employee’s notice period requires employers to revise termination policies and adjust internal planning for workforce transitions.
Article 79 (bis): New Resignation Process
New Addition:
1. A resignation request shall be deemed accepted if thirty (30) days have elapsed since its submission without a response from the employer. The employer may postpone the acceptance of the resignation for a period not exceeding sixty (60) days if work interests so require, provided that a written, reasoned explanation is given to the worker—and such postponement must occur before the expiry of the thirty (30) days mentioned herein. The postponement period shall be calculated from the date the explanation is provided.
2. The employment contract shall terminate by resignation either on the date the employer accepts it or upon the expiry of the thirty (30) days mentioned in paragraph (1) without a response from the employer, or upon the expiry of the postponement period mentioned in paragraph (1), whichever occurs first.
3. The worker may withdraw his resignation request within a period not exceeding seven (7) days from its submission, unless the employer has already accepted it.
4. It is not permissible to specify a postponed termination date in the resignation request.
5. The employment contract shall remain in force during the period in which the resignation request is pending, and both parties shall continue to fulfil all obligations arising therefrom.
6. The worker whose contract terminates by resignation shall be entitled to all rights provided for under this system.
What This Means:
This new clause enhances clarity and protection for both workers and employers regarding resignations. It establishes a default acceptance rule where a resignation is automatically accepted if the employer does not respond within 30 days. Employers can postpone acceptance for up to 60 days for work-related reasons, but only with a written justification provided before the initial 30-day period expires. Workers can withdraw their resignation within 7 days, unless already accepted. During the resignation process, employment obligations continue, and workers retain all legal entitlements upon contract termination. The provision prevents workers from setting a future resignation date, ensuring resignation timelines remain clear and enforceable.
Article 107: Overtime Compensation
Before Amendment:
1. The employer shall pay the worker an additional wage for the additional working hours equivalent to the hourly wage plus 50% of his basic wage.
After Amendment:
1. The employer must pay the worker additional compensation for overtime hours equivalent to the hourly wage plus 50% of the worker’s basic wage. The employer may, with the worker’s consent, grant the worker paid compensatory leave days instead of the monetary compensation for overtime hours. The bylaws shall specify the related provisions.
For Employers:
Be prepared to incorporate policies that allow for compensatory leave, ensuring all arrangements are mutually agreed upon and clearly documented.
Article 113: Leave Benefits for Personal Events
Before Amendment:
Subject to the leave entitlements of female workers as specified in this law, a worker is entitled to fully paid leave for five days in the event of the death of their spouse, ascendant, or descendant, or upon their marriage, and three days in the event of the birth of a child. The employer has the right to request supporting documentation for the aforementioned cases.
After Amendment:
Without prejudice to the leave entitlements granted to female workers under this law, a worker shall be entitled to fully paid leave of (five) days in the event of marriage or the death of a spouse, ascendant, or descendant. A worker shall also be entitled to (three) days of fully paid leave in the event of the death of a brother or sister, all of which shall be counted from the date of the event. Additionally, a worker shall be entitled to (three) days of fully paid leave in the event of the birth of a child to him, to be taken within (seven) days from the date of birth. The employer shall have the right to request supporting documents for these cases.
Summary of Changes in the Amended Clause
The new amendment introduces the following key changes that both employees and employers should be aware of:
- New Leave for the Death of a Sibling:
- Previously, paid bereavement leave was granted only for the death of a spouse, ascendant (parent/grandparent), or descendant (child/grandchild).
- The new amendment adds a three-day paid leave entitlement for the death of a brother or sister.
- Clarification on Paternity Leave Timing:
- The old version granted three days of paid leave for the birth of a child without specifying when it must be taken.
- The amended clause now clarifies that this three-day leave must be taken within seven days from the date of birth.
- Employer’s Right to Request Supporting Documents Remains Unchanged:
- Employers retain the right to ask for documentation to verify the eligibility for these types of leave.
Impact on Employees & Employers:
- Employees now have an additional bereavement leave category (for the death of a sibling) and a clearer timeframe for paternity leave.
- Employers need to update their HR policies to reflect the new sibling bereavement leave and ensure paternity leave is applied within the specified seven-day window.
Article 151: Extended Maternity Leave
Before Amendment:
1. A female worker is entitled to maternity leave with full pay for a period of ten weeks, which she may distribute as she wishes, starting up to a maximum of four weeks before the expected date of delivery. The expected delivery date must be determined by a medical certificate issued by an accredited health authority.
2. It is prohibited to employ a female worker under any circumstances during the six weeks following childbirth. She also has the right to extend her leave for an additional month without pay.
3. In the case of giving birth to a sick child or a child with disabilities who requires continuous care, the female worker is entitled to one month of paid leave starting after the end of her maternity leave. She also has the right to extend this leave for an additional month without pay.
After Amendment:
1. A female worker is entitled to maternity leave with full pay for a period of twelve (12) weeks, of which six (6) weeks following delivery are mandatory. She may distribute the remaining six (6) weeks as she deems appropriate, starting up to four (4) weeks before the expected delivery date. The expected delivery date must be determined by a medical certificate issued by an accredited health authority. If the remaining leave duration is less than six (6) weeks due to a delay in delivery beyond the expected date, the remaining period will be considered unpaid leave. In all cases, the female worker has the right to extend this leave for one (1) additional month without pay.
2. In the case of giving birth to a sick child or a child with disabilities who requires continuous care, the female worker is entitled to one (1) month of paid leave starting after the end of her maternity leave. She also has the right to extend this leave for an additional month without pay.
What This Means:
Female employees now receive greater protection and flexibility regarding maternity leave which has extended from 10 to 12 weeks, aligning with international best practices. Employers must revise their policies and HR manuals accordingly.
What Employees Should Be Aware Of
The amendments to the Saudi Labour Law significantly impact employee rights. Here are the key points that every employee should know:
- Enhanced Leave Benefits:
- Maternity leave is now 12 weeks, with a mandatory six-week post-delivery period and the possibility of additional unpaid leave if needed.
- A new leave entitlement has been introduced for the death of a sibling, along with existing provisions for marriage and other family emergencies.
- Paternity aspects are implicitly addressed by clarifying leave for personal events, providing more comprehensive family support.
- Resignation Flexibility:
- The new Article 79 offers employees the right to withdraw their resignation within seven days if they change their minds before the employer formally accepts the resignation.
- Understand that the resignation process includes a waiting period during which both parties remain bound by their contractual obligations.
- Contract Duration Clarity for Non-Saudis:
- If your employment contract lacks a clearly defined term, it will default to one year from the start date, with automatic renewal if you continue working.
- Make sure your contract explicitly states the duration to avoid unintended automatic renewals.
- Probation Period Adjustments:
- The maximum probation period has now been set to 180 days without specific exclusions for holidays or sick leave—details will be regulated shortly.
- Clarify with your employer how your probation period will be calculated.
- Notification and Dispute Procedures:
- The updated procedures regarding penalty notifications (Article 72) ensure you have a clear timeline for objections and grievances.
- Ensure you receive all notifications in writing and are aware of your rights to challenge any imposed penalties.
What Employers Must Address
Employers need to take immediate steps to ensure compliance with the new law. Here’s what you should do:
- Revise Employment Contracts:
- Update contracts to include clear terms—especially for non-Saudi workers, ensuring a specified duration to avoid default one-year terms.
- Use the new model forms (Article 52) once they are issued by the Ministry to ensure that all contracts are legally compliant and reflective of each employment type.
- Update HR Policies and Training Programs:
- Develop comprehensive training and qualification policies for Saudi workers (Articles 42 & 43) in anticipation of future Regulations.
- Adjust probation policies in line with the new 180-day maximum and incorporate forthcoming details regarding leave exclusions.
- Overtime and Leave Management:
- Amend overtime policies to include the option for compensatory leave in lieu of additional pay, in accordance with Article 107.
- Update leave policies to incorporate the extended maternity leave (Article 151), the new sibling bereavement leave, and ensure all leave periods are calculated as per the amended law.
- Resignation and Termination Procedures:
- Educate managers on the new resignation process (Article 79) and update offboarding procedures.
- Revise notice period requirements for indefinite contracts (Article 75) to reflect the reduced notice period for employee-initiated terminations.
- Clearly communicate the revised termination conditions (Article 74) in your employee handbooks.
- Compliance with Attestation and Documentation:
- Ensure that all employment contracts are properly attested as per the updated statutory requirements (Article 51).
- Stay informed about further Regulations that will clarify details on various provisions, such as the calculation of probation periods and compensatory leave conditions.
- Monitoring Saudization and Work Permit Compliance:
- Review internal policies to ensure strict adherence to Saudization criteria and all other regulatory conditions, as detailed in Article 35.
- Prepare for potential work permit non-renewals by developing internal mechanisms to safeguard the rights of affected workers.
- Prepare for Inter-Ministerial Coordination:
- With Article 39’s new referral process involving the Ministry of Interior and the Ministry of Human Resources and Social Development, maintain robust compliance records and be ready for increased regulatory scrutiny.
Final Thoughts
The 2025 amendments to the Saudi Labour Law represent a transformative shift in the Kingdom’s employment landscape. These changes are designed to promote fairness, enhance employee protections, and ensure that employers adopt more structured and transparent practices.
For employees, this means clearer rights and more flexible options in terms of leave and resignation. For employers, the emphasis is on updating contracts, policies, and training programs to align with these new legal requirements. Both parties should take the time to review these changes in detail, seek expert advice if necessary, and prepare for a seamless transition to the new legal framework.
Staying informed is crucial—make sure to review the full text of the Amended Saudi Labour Law and consult legal experts where needed. And remember, the regulations for domestic workers remain unchanged; you can review those details on our Domestic Workers Law page.
By proactively adapting to these amendments, both employees and employers can contribute to a more dynamic and compliant labour market in Saudi Arabia. Stay informed, update your policies, and ensure that your practices meet the new standards set forth in this historic reform.
