The Saudi Council of Ministers approved key revisions to numerous articles of the Labor Law. These amendments aim to cultivate a more attractive work environment and contribute to achieving sustainable development in accordance with the objectives of Saudi Vision 2030.
Scope of labor law revisions
The Ministry of Human Resources and Social Development stated that the new revisions encompass 38 articles, removing seven articles, and adding two new articles to the Labor Law. These revisions align with the Saudi employment market strategy as well as international agreements ratified by the Kingdom. The ministry noted that the new revisions will take effect 180 days after their publication in the official Gazette.
Enhancing job stability
The revisions were designed to improve the labor market in the Kingdom, enhance job stability, preserve the rights of parties to employment contracts, develop human resources, bolster training opportunities for workers, and increase job prospects for citizens.
Enhanced worker protections
The revisions accounted for the interests of all parties to employment contracts. This included expanding provisions on vacations and labor contracts; adding definitions for the terms “resignation” and “assignment”; specifying procedures for resignation; amending worker grievance procedures; and introducing penalties for unlicensed worker employment. The new revisions also mandate that employers formulate a dedicated policy for training and upskilling employees. Amendments were also made to the section on maritime work.
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Extensive study and benchmarking
Moreover, the ministry explained that the new revisions were crafted after an extensive study benchmarking labor laws in several countries and analyzing global best practices. This further involved input from over 1,300 participants who provided opinions and suggestions through the Istitlaa survey platform, run by the National Competitiveness Center. The ministry also sought advice from private sector entities, relevant government agencies, labor committees, and HR specialists.
Supporting market and sector development
These revisions aim to reinforce the directive to develop existing systems and regulations that support the market, production, and service sectors. They also seek to provide an appropriate legislative environment and aid small and medium enterprises in creating more job opportunities for citizens, thereby achieving sustainable development goals aligned with the labor market strategy and Saudi Vision 2030.
Additional details on the Labor Law article amendments can be found on the ministry’s official website.
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