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Saudi Arabia announces key Labor Law amendments to improve work environment

 

The Saudi Council of Ministers on Tuesday endorsed certain changes to several articles of the Labor Law that seeks to develop a favorable work environment and help realise the sustainable development strategy of KSA Vision 2030.

The Ministry of Human Resources and Social Development added that the new amendments consist of 38 articles which cancel 7 articles and introduce 2 new articles to the Labor Law.

Pursuant to the changes is the Kingdom’s Saudi employment market plan as well as ratified global treaties within the country. The ministry added that the new amendments will take effect 180 days from the date of their publication in the official Gazette. 

These changes sought to achieve the following goals: The adjustment of the labor market situation in the Kingdom; the promotion of employment security standards; the protection of the rights of the parties to the contractual relationship; the staff development; the improvement of training opportunities for workers; and the expansion of employment opportunities for the Kingdom’s citizens.

As a result, the amendments were implemented in consideration of the risk and interest of all the parties to the contractual relation. These included an expansion of the item on vacations and labor contracts; adding a definition of the terms: resignation and assignment; new article with description of procedures of resignation; changes the grievance procedures for the worker; penalties for carrying the activity of employing the workers without authorization of the ministry.

The new amendments also require the employer to develop a special policy on the training and qualification of employees to increase the level of their qualification. Amendments were also made in several points of the item on maritime work.

The ministry said new changes are due to the fact that they underwent a comparative analysis of standards with labor legislation of several countries and the best practices after the involvement of more than 1300 participants who provided their feedback and recommendations to the proposed amendments to various articles of the Labor Law through the Istitlaa survey platform launched by the National Competitiveness Center.

Besides that, they have been in a position to share their opinions and advice with private establishments, government ministries as well as departments, labor unions, committees, and many specialists and experts in human resource through both training sessions and consultations.

All these amendments are prepared to strengthen the directive for enhancing existing systems and regulations, which underpin the market and manufacturing and services sectors, besides forming the proper legal framework, and help small and medium enterprises to create the best circumstances for generating more jobs for the citizens as well as serving the objectives of the sustainable development, consistent with the labor market and the goals of KSA Vision 2030.

Regarding more details of the amendments of the Labor Law articles, more information can be provided by going to its official website the ministry noted.

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