Cabinet Approves Key Amendments to Labor Law Articles

In a session held on Tuesday, Safar 2, 1446 AH, the Cabinet approved a series of amendments to several articles of the Labor Law. These changes are designed to foster a more attractive work environment for employees, aligning with the goals of Saudi Vision 2030 and contributing to sustainable development. The amendments also support the labor market strategy and are in accordance with international agreements ratified by the Kingdom of Saudi Arabia.

The new provisions aim to enhance job stability, protect the rights of all parties in contractual relationships, and support the development of human resources. Additionally, they focus on improving training opportunities for workers and increasing employment opportunities for Saudi citizens.

The Ministry of Human Resources and Social Development explained that these amendments were the result of an extensive study, which involved benchmarking labor laws from various countries and reviewing global best practices. Feedback was gathered from over 1,300 participants via a survey platform, and consultations were conducted with private sector entities, relevant government agencies, labor committees, and human resources experts through workshops and meetings. The revisions include modifications to 38 articles, the removal of 7 articles, and the addition of 2 new articles to the Labor Law.

These changes aim to refine existing regulations, bolster the market and productive sectors, and provide a conducive legislative environment. They also focus on supporting small and medium enterprises to create more job opportunities for citizens and achieve sustainable development goals, in line with the labor market strategy and Saudi Vision 2030 targets.

The amendments take into consideration the interests of all parties involved in contractual relationships. Key changes include an expansion of the chapters on leave and contracts, the introduction of definitions for "resignation" and "outsourcing," and the addition of procedures for resignation.  The amendments also revise worker grievance processes and impose penalties for unlicensed worker recruitment activities. Employers are now required to establish training and qualification policies to enhance worker skills and performance. Additionally, significant changes have been made to the maritime labor chapter. 

The Ministry of Human Resources and Social Development encourages those interested in reviewing the full details of the Labor Law amendments to visit the Ministry's official website. The new amendments will take effect 180 days after their publication in the Official Gazette.