The Saudi Labor Law is the social contract governing the relationship between millions of workers and employers in the Kingdom. Since its issuance by Royal Decree No. (M/51), it has gone through several waves of amendment, the latest and most significant being the amendments of Royal Decree No. (M/44), which came into force on 20/8/1446H and reshaped fundamental provisions on termination, resignation, probation, maternity leave, and more. This guide summarizes the big picture and the key changes for you, whether you are a worker who wants to know their rights or an employer who wants to avoid violations.
Who does the law apply to? And who is excluded?
The law applies to every employment relationship in which a person undertakes to work for the benefit of an employer, under their management or supervision, in return for a wage. But there are excluded categories, most notably: family members of the employer working in an establishment that includes only them, domestic workers and those in their category (which have special regulations), private agricultural workers and herders, seafarers on small vessels, club players and their coaches, and the non-Saudi worker coming for a specific task not exceeding two months.
An important point for individuals
Even if your contract is not written, the relationship exists in law. The law grants the worker alone — in the absence of a written contract — the right to prove the contract and the rights arising from it by all means of proof. But a written, documented contract protects both parties and cuts off disputes.
The key changes in the recent amendments
1. The notice period before termination changed fundamentally
In open-ended contracts with a monthly wage, the notice period is now at least sixty days if termination is by the employer, and thirty days if it is by the worker. This is an important change — previously the period was thirty days for both parties. The employer is now bound by a longer period to protect the worker's stability.
2. Resignation now has clear rules
Detailed provisions on resignation that did not previously exist were added: a resignation is deemed accepted by operation of law if thirty days pass without a response, the worker has the right to withdraw it within seven days, and the resigning worker is entitled to all their statutory rights. (We detail this in a separate post.)
3. The probation period reaches 180 days
After the maximum was ninety days, the total probation period may now reach one hundred and eighty days.
4. Maternity leave became 12 weeks
Paid maternity leave for the working woman rose to twelve weeks, of which the six weeks following the birth are mandatory.
5. New obligations on the employer
The employer is now obliged to provide suitable housing and a means of transport for their workers (or a suitable cash allowance for each), in addition to an explicit obligation to prevent discrimination in employment based on sex, disability, age, or otherwise.
6. Labor courts replace dispute-settlement commissions
Labor disputes are now heard before specialized labor courts, after the abolition of the former "labor dispute settlement commissions" system.
Basic rights the law guarantees every worker
Regardless of the amendments, the law guarantees established rights: the wage on time and in the official currency through banks, annual leave of no less than 21 days (rising to 30 after five years), graduated sick leave, an end-of-service award, protection from arbitrary dismissal, and a health-safe work environment.
Basic obligations on every employer
In return, the law obliges the employer to: write and document the contract, prepare a work-organization regulation per the Ministry's template, comply with Saudization ratios, pay wages on time, provide occupational safety, and treat workers with respect without prejudice to their dignity or religion.
The most important rule in labor disputes
No claim for a right arising from the employment contract is accepted before the labor courts after twelve months from the date the employment relationship ended (unless the judge accepts an excuse or the other party issues an acknowledgment). So if your relationship ended in a dispute, do not delay in claiming your right.
Conclusion
The recent amendments moved the Labor Law a step toward a more precise balance between protecting the worker and the employer's flexibility. Importantly, most circulating content is old and does not reflect these changes — so your knowledge of the actually-in-force provisions protects you from decisions built on expired information. The golden rule: do not rely on what you "used to know" about the Labor Law — the law has changed, and every decision (termination, resignation, hiring) must be built on the text in force today, whether you are a worker or an employer.
In upcoming posts in this series, we detail: termination of the employment contract, resignation under its new rules, calculating the end-of-service award, the probation period, and the employer's obligations.
How does LEXIUM help?
We review employment contracts and establishment regulations for compliance with the in-force law, represent both worker and employer before the labor courts, and provide preventive consultations that spare you costly disputes and financial penalties.
Note: This content is general and introductory and does not substitute for legal advice tailored to your situation, especially given the recency of the amendments and their phased entry into force.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. See our full disclaimer.