Key Amendments to the Saudi Labor Law

Key Amendments to the Saudi Labor Law
Date: September 2024.

In alignment with Saudi Arabia's Vision 2030 initiative, aimed at developing a more competitive and attractive labor market, the Ministry of Human Resources and Social Development (MHRSD) has introduced significant amendments to the Saudi Labor Law, which were initially enacted in 2005 by Royal Decree Number M/51. These amendments have been approved by the Saudi Council of Ministers and are intended to modernize labor practices, offering improved protections and flexibility for both employers and employees across the Kingdom. The amendments will take effect on 18 February 2025, and they make several references to Executive Regulations, which are expected to provide further clarification and expansion on the provisions. This report highlights the 32 key amendments to the Saudi Labor Law and offers a detailed overview of their impact on businesses operating within Saudi Arabia, ensuring compliance with the updated legal framework.