Saudi Arabia: Amendments to Saudi Labor Law

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On August 6, 2024, the Council of Ministers approved the Saudi Labor Law (hereinafter referred to as theRevisionThe decree will come into force within 180 days of publication in the Umm Al Qura (Official Gazette), and we expect it to come into force within two weeks.

Ministry of Human Resources and Social Development (“Ministry of Human Resources and Social SecurityThe committee published proposed amendments to these provisions for public consultation in 2020 and 2021. More than 1,300 participants, including private and government entities and human resources experts, commented on the proposed amendments through surveys, workshops, and consultation sessions. Based on broad labor market input and extensive benchmarking of other countries’ labor laws and global practices, the amendments are intended to further align with Saudi Arabia’s Vision 2030 by creating a more attractive working environment for employees, enhancing job security, protecting the rights of both parties, developing human capital, and promoting training opportunities.

The amendments refer to the implementing regulations of the Labor Law, so we expect that the Minister of Human Resources and Social Security will issue amendments or new implementing regulations on or before the effective date of the amendments to address the recent changes.

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