Recent developments in Saudi Arabia
Employment laws in Saudi Arabia have undergone significant amendments aimed at modernizing the labor market, enhancing worker protections, and aligning with the Kingdom’s Vision 2030 objectives. These changes, effective from February 19, 2025, introduce several key reforms:
Written Fixed-Term Contracts for Non-Saudi Nationals (2025)
All employment contracts for non-Saudi nationals must now be in writing and have a fixed term. If the contract does not specify a duration, it will default to one year from the employee’s start date. Should employment continue beyond this period, the contract will automatically renew for an equivalent duration.
Resignation Procedures (2025)
Employees on fixed-term contracts can resign by submitting a written request. If the employer does not respond within 30 days, the resignation becomes effective. Employers may delay acceptance of a resignation for up to 60 days for valid business reasons, provided they notify the employee with written justification before the initial 30-day notice period expires.
Notice Periods for Termination (2025)
The notice period for terminating indefinite contracts has been revised. Employees must provide at least 30 days’ notice before resigning, while employers are required to give 60 days’ notice if they terminate the contract.
Enhanced Leave Entitlements (2025)
Maternity Leave: Increased to 12 weeks of full pay, with six weeks mandatory post-childbirth. Maternity leave may begin up to four weeks before the expected date of birth.
Paternity Leave: Fathers are now entitled to three days of paid paternity leave within seven days of their child’s birth.
Bereavement Leave: Employees can take three days of paid leave upon the death of a sibling.
Overtime Compensation (2025)
Employers now have the option to compensate overtime hours with vacation days, provided they obtain the employee’s consent.
