Cabinet Resolution No. (117), issued on 02/02/1446 AH, and Royal Decree No. (M/44), dated 02/08/1446 AH, have approved significant amendments to various provisions of the Saudi Labor Law. These amendments came into effect on 20/08/1446 AH, corresponding to February 19, 2025.

More than 30  articles were amended to align the law with current developments and labor market needs. Additionally, 7 articles were repealed, eliminating outdated provisions and introducing updated regulatory frameworks.

Key highlights of the amendments include:

• Article 53 (Probationary Period):
  Limits the maximum probationary period to 180 days, during which either party may terminate the employment contract.
• Articles 2 and 79 (Resignation Provisions):
  Article 2 introduces a formal definition of resignation. Article 79 regulates resignation procedures for the first time, including mandatory notice periods and their enforceability.
• Article 113 (Leaves):
  Grants five days of fully paid leave for marriage or for the death of a spouse, ascendant, or descendant; and three days for the death of a sibling, effective from the date of the incident. Additionally, three days of leave are granted for the birth of a child, to be taken within seven days. Employers may request supporting documentation.
• Article 61 (Allowances):
  Requires employers to provide workers with accommodation and transportation or pay a suitable cash allowance in lieu, to be disbursed with monthly wages.
• Article 74 (Termination of Employment):
  Introduces new grounds for termination, including resignation and a final decision or judgment issued by a competent authority to terminate a contract due to bankruptcy proceedings under the Bankruptcy Law.

The recent amendments to the Labor Law reflect Saudi Arabia’s efforts to modernize labor regulations in line with market demands. With updates to probation periods, resignation rights, leave entitlements, and employer obligations, companies must revisit their employment policies and contracts to ensure compliance.

For assistance in reviewing your HR policies, employment contracts, or for legal advice on the new Labor Law, please get in touch with our team at info@mashoralaw.com. We are here to help you implement these changes effectively and lawfully.