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In August 2024, the Saudi government made significant changes to the Labor Law, amending 47 articles that will take effect in February 2025. This article highlights six major amendments that every employee and employer in Saudi Arabia should know.
1. Death Leave
Under the updated Article 113, employees are now entitled to three fully paid working days of leave in the event of a sibling’s (brother or sister) death. Previously, this leave was only one fully paid working day. This amendment reflects the importance of family support during difficult times and aligns with the law’s aim to provide better welfare for workers.
Key Point: Employees can now take three days of paid leave for the death of a sibling.
2. Maternity Leave
The amended Article 151 states that all Saudi and expatriate women working in Saudi Arabia are entitled to 12 weeks of fully paid maternity leave. This is an increase from the previous entitlement of 10 weeks. This change not only promotes a healthy work-life balance for new mothers but also supports child welfare in the country.
Key Point: Maternity leave has increased from 10 weeks to 12 weeks of full pay.
3. Renewal of a Fixed-Term Contract
According to the new Article 37, all employment contracts for non-Saudis will remain fixed-term. If a contract does not specify a duration, it will be considered valid for one year from the date of hiring. Additionally, if the fixed-term contract does not include a renewal clause, it will automatically extend for one year. The previous rule allowed extension only until the Iqama (residency permit) expiry date.
Key Point: Fixed-term contracts now automatically extend for one year if no renewal clause is specified.
4. Notice Period in a Fixed-Term Contract
To terminate or resign from a fixed-term contract, employees and employers must adhere to specific notice periods. If the contract does not mention a notice period, the following rules apply:
- Employees: Must provide a 30-day notice.
- Employers: Must give a 60-day notice.
These regulations aim to ensure that both parties have sufficient time to make necessary arrangements and maintain a stable work environment.
Key Point: Notice periods are now set at 30 days for employees and 60 days for employers unless stated otherwise in the contract.
5. Probation Period
The probation period for employees in Saudi Arabia is now capped at 180 days. This change ensures that new employees have a fair chance to demonstrate their skills and fit within the company without an excessively long trial period.
Key Point: The maximum probation period is now limited to 180 days.
6. Overtime
The new regulations give employees the option to choose between an overtime allowance or paid leave for extra hours worked. This flexibility allows workers to make choices that suit their needs and personal circumstances better.
Key Point: Employees can opt for either overtime pay or paid leave for additional hours worked.
FAQs
Q1: What is the effective date of the new amendments to the Saudi Labor Law?
A1: The amendments will take effect in February 2025.
Q2: How much death leave is now granted for a sibling’s death?
A2: Employees are now entitled to three fully paid working days of leave.
Q3: How long is the maternity leave under the new law?
A3: Maternity leave has been extended to 12 weeks of fully paid leave.
Q4: What happens if a fixed-term contract does not specify a duration?
A4: If no duration is mentioned, the contract is valid for one year from the date of hiring.
Q5: What are the notice periods for terminating a fixed-term contract?
A5: Employees must provide a 30-day notice, while employers must give a 60-day notice unless specified otherwise in the contract.
Q6: Is there a limit to the probation period?
A6: Yes, the probation period cannot exceed 180 days.
Q7: Can employees choose how to be compensated for overtime?
A7: Yes, employees can choose between an overtime allowance or paid leave for extra hours worked.
These amendments reflect the Saudi government’s commitment to enhancing worker rights and welfare. Understanding these changes can help employees and employers navigate their rights and responsibilities under the new law effectively. If you have more questions about the amendments or need further clarification, feel free to reach out!