Amendments to the Saudi Labor Law 2025

Amendments to the Saudi Labor Law 2025

The Kingdom has recently witnessed amendments to the Labor Law Regulations, due to the importance of the business sector in the Kingdom, including amending 38 articles, canceling 7 articles, and adding 2 articles, with the aim of protecting workers’ rights, improving the work environment, stimulating the employment of Saudis, increasing competitiveness in the work environment, and supporting working women, in addition to many other goals that contribute to establishing a more flexible and fair work environment.

In this article, we will discuss the most prominent amendments to the new Saudi Labor Law that include the private sector and government establishments registered in social insurance, in addition to their expected positive impact on the stability of the labor market in the Kingdom.

You can also contact the office of lawyer Abdul Majeed Al Rashid to understand your rights and know your duties at work

What are the most important objectives of the new amendments to the Saudi Labor Law?

Developing systems and regulations.
Supporting small and medium enterprises to create employment opportunities for citizens.
Achieving the Sustainable Development Goals.

New terms added to the new Saudi labor system

Resignation

Among the important amendments introduced to the Saudi Labor Office system is the addition of a clear definition of resignation with specific legislation that supports workers’ rights and ensures justice and equality in the work environment.

Resignation is defined as a written request submitted by an employee to an employer in a fixed-term contract without any conditions, restrictions, or coercion, and approved by the employer within a specified period.

A resignation request is considered acceptable if 30 days have passed since the date of submitting the resignation and the employer has not responded to it, even if the employer rejects it after the period has passed.
The organizer grants the employer the right to postpone accepting the resignation “i.e. it is accepted but he wants to postpone it” for a period not exceeding 60 days, provided that the decision is in writing with an explanation of the reasons and the calculation of the period begins from the date of writing the decision. The postponement decision must also be taken within the first 30 days of submitting the resignation, and if this is not done, the resignation is considered accepted in accordance with the first paragraph.
To know more details about the subject of resignation in the new Saudi labor system, we advise you to read the article “Resignation Provisions in the New Saudi Labor Law 2025“

Attribution

It is a service that provides a worker to work for someone other than the employer through a facility licensed for this purpose.

“If you encounter any problem in your work environment or need to know your rights and duties, do not hesitate to seek help from a labor lawyer from the office of Lawyer Abdul Majeed Al Rashid! We are here to guarantee you reliable and fast legal advice”

New labor system amendments for non-Saudi workers

New amendments in non-Saudi work

According to Article 37 of the Saudi Labor Law Regulations, a non-Saudi employment contract must be in writing and of a fixed duration. If the contract does not include a statement of its duration, his contract is considered valid for one year from the date he begins work, instead of being linked to the expiration date of his residence permit as in the previous law. If work continues after the expiration of this period, it is considered renewed for a similar period.
According to Article 40 of the Labor Law, the law specifies a fine for delaying the renewal of residency for a non-Saudi worker, and the employer must pay this fine if the negligence is on his part.

Amendments to the work system during the training and qualification phase for employees

According to Article 42 of the Labor Law, the establishment is obligated to establish a training and qualification policy.

The employer can now contract with the trainee and register him in his facility, or cooperate with another party to implement the training.

Training contracts must be documented on a power platform for each employee.

Cancellation of 12% of the total number of Saudis for the facility’s workers, and the percentage may be determined later.

A paragraph has been added specifying the skill that the trainee will acquire in the qualification and training contract.

The trainee has the same rights as the employee in terms of leave, bonuses, and compensation in full.

The training contract can only be terminated with periodic evaluation reports Neither party can claim compensation unless the contract includes a provision to that effect, in accordance with Article 48 of the new Labor Law, which stipulates that the employer may terminate the qualification or training contract if it is proven that the trainee or person subject to qualification is unable or incapable of completing the training or qualification programs in a useful manner in accordance with periodic evaluation reports prepared by the establishment providing the training or qualification The trainee or qualification holder has the right to terminate the contract. The party wishing to terminate the contract must inform the other party of its desire to do so at least one week before the date specified for termination. Neither party may claim compensation from the other party unless the contract includes a provision to that effect.

After completing the training or qualification period, the employer must oblige the trainee or the person subject to qualification to work for him for a period similar to the training or qualification period. If the trainee or the person subject to qualification refuses or refrains from working for the same period or some of it, he must pay the employer the training or qualification costs borne by the employer or in proportion to the remaining period thereof.

Amendments to the labor system in documenting employment contracts

The new amendments to the labor system require that employment contracts be documented electronically via the Qawa platform, eliminating the paper documentation that was in effect in the previous system.

In the Saudi labor system in the past, there was a difference in the judicial view between electronically notarized contracts and paper contracts in the past, but with the new regulatory text, the electronically notarized contract is the contract approved by law, meaning that the legal effect only results from contracts notarized by the Ministry of Human Resources.

However, if the employer does not conclude a contract with the worker, the worker has the right to prove his right using any available means, including a paper contract.

“It is important not to underestimate reading and reviewing contracts carefully, in addition to documenting electronic contracts via the Qawa platform, as these procedures are among the most prominent means of guaranteeing the rights of the worker and the employer”

New amendments to unify employment contract models

The new system talks about the models of employment contracts that employers must adhere to. According to Article 52 of the new Saudi Labor Law 2025, the Ministry specifies a unified model for each type of employment contract, regardless of the type of contract, whether it is a regular, occasional, seasonal, temporary employment contract, etc. of employment contracts.

It basically contains the name and location of the employer, the name and nationality of the worker, what is required to prove his identity, his address of residence, the agreed-upon wage, including benefits and allowances, the type and location of work, the date of joining it, the duration of the contract if it is fixed-term, and the basic rights and obligations of each party.

Amendments to the new labor law during the trial period

In the previous system, the trial period extended to 90 days, with the possibility of extending it up to 180 days. However, in the new amendments, it has become clearer and less complex, as the trial period has been set to be direct, with a maximum of 180 days, and is clearly specified in the contract without the need to re-agree on the extension.

The probationary period was also allowed to be waived permanently, and it became possible to terminate the employment contract during this period by the worker or employer, and to cancel the right to terminate unilaterally.

New amendments to the labor system regarding the employer’s duties towards the worker

According to Article 61 of the new labor system, the facility owner must:

Support equal opportunities and equality in the employment process, and refrain from doing anything that would nullify or weaken the application of equality, whether through exclusion, differentiation or preference between job applicants or workers on the basis of race, colour, sex, age, disability, marital status or any other form of discrimination.
Transportation and housing allowances have become mandatory for the employer towards the worker, as it is necessary to provide suitable housing and decent transportation, or a housing and transportation allowance if it is not provided by the employer, and if the allowance is not specified in the contract, it is according to custom and agreement between the worker and the employer.

Amendments to the labor system in disciplinary penalties

According to the new amendments to the new Saudi Labor Law stipulated in Article 72, the worker has the right to appeal to the establishment owner or the legal authority in the establishment against the disciplinary measure or warning imposed on him within 30 days from the date of imposing the penalty. The employer must respond to the appeal within 15 days from the date of submitting it, which provides an opportunity for understanding between the two parties and reaching an agreement such as lifting the penalty or convincing the worker.
If the employer does not respond to the grievance within the specified period or if the problem is not resolved, the worker can submit the objection to the amicable settlement office. However, in the old system, the worker would submit the grievance directly to the amicable settlement office without first attempting to resolve the problem with the employer.

New amendments to the termination of an indefinite employment contract

According to Article 75 of the new Labor Office system, if the wage is paid monthly, either party has the right to terminate the contract based on a legitimate reason in accordance with the following:

If the termination is by the worker, he must give written notice to the employer at least 30 days before the date of termination, after the period was 60 days in the previous system.
If the termination is by the employer, he must give written notice to the worker at least 60 days before the date of termination.
If the wage is not paid monthly, the party deciding to terminate the contract (whether the worker or the employer) must give written notice to the other party at least 30 days before the date of termination.

Termination of an employee’s employment contract in the new Saudi Labor Law

Termination of the employment contract while the employee retains compensation in accordance with Article 74 of the Labor Law.
Termination of the employment contract without compensation, such as a report of absence from work in the new system in accordance with Article 80 of the Saudi Labor Law.
The employee terminates his contract while retaining compensation in accordance with Article 81 of the Labor Law.
Compensation in the event of termination of employment, whether by the worker or the employer, for an unlawful reason, in accordance with Article 77 of the Labor Law.

Amendments to the work system regarding overtime hours

According to Article 107 of the new Labor Law, overtime hours can be compensated with vacations instead of financial compensation, which benefits the stability of establishments.

In the old system, compensation for overtime hours was made through the payment of sums of money, but now it has become possible, based on an agreement between the employer and the employee, to calculate paid compensatory vacation days instead of the wage due for overtime hours.

Amendments to the new work system during vacations

Death leave: Leave was added upon the death of a brother or sister for a period of 3 days from the date of death.
Child leave for the father: A leave of 3 days has been set in the event that a child is born to him within 7 days from the date of birth, in accordance with Article 113 of the new labor system.

Maternity leave amendments for pregnant women

According to Article 151 of the new Labor Law, maternity leave has been extended from 10 weeks to 12 weeks with full pay.
Of the 12 weeks, a woman is required to take 6 weeks after giving birth.
A woman can distribute the remaining 6 weeks as she wishes so that she can take them before or after giving birth.
If the situation is later than the expected date and the remaining period of leave is less than 6 weeks, the remaining period is counted as unpaid leave.
A working woman who gives birth to a child with special needs is entitled to a full additional wage for one month, and social insurance covers compensation for this type of leave for companies.

How do amendments to the new Saudi Labor Law help preserve the rights of parties?

Clarify the employer’s duties.
Raised the level of clarity.
It raised the level of competitiveness.
Support employee training.
Supporting employee interests and job stability.

Finally, the amendments contribute to improving the work environment and ensuring the rights of all parties. If you need to know the details of any procedure or clarify it, do not hesitate to consult a labor lawyer who will help you understand your rights and duties. Contact the office of lawyer Abdulmajeed Al Rashid for legal consultations now!