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KSA Royal Decree No. D44 of 1446H Amending Provisions of the Labor Law

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The Saudi Council of Ministers approved several amendments to the Labor Law, initially promulgated by Royal Decree No. [M/51] dated 23/08/1426 H. The amendments of Royal Decree No. D44 of 1446H will take effect 180 days after publication in the Official Gazette.

Key changes include the addition of definitions for "outsourcing" and "resignation,", stricter regulations on employee outsourcing and staffing companies and promoting local talent recruitment in line with Vision 2030. It also enhances employee rights by including extended maternity leave and bereavement leave. Employers face new obligations to provide accommodation or allowances and prohibit any discriminatory policies in the workplace and the hiring process. Probation periods are set to 180 days, and employment contracts offer more flexibility in termination and resignation processes. Training and localization requirements mandate formal policies for developing Saudi employees, supporting Saudization goals.

These amendments aim to enhance labor market performance, ensure equal treatment, and improve worker rights and conditions.

  • Anti-Discrimination: Employers must ensure equal opportunities and treatment, avoiding any discrimination based on race, gender, age, disability, etc.
  • Housing and Transport: Employers are now required to provide accommodation and transport or corresponding allowances.
  • Probationary Period: Must be stated in the employment contract and cannot exceed 180-days, with both parties having the right to terminate during this period.
  • Overtime: Offers flexibility to compensate overtime with either pay uplift or time off, subject to employee consent.
  • Limited Term Contracts: Defaults to a one-year term if unspecified, renewable for similar periods.
  • Leaves: Maternity leave increased to 12 weeks, paid parental leave for fathers set at three days, and three days of bereavement leave for the death of a sibling.
  • Resignation: Introduces clear resignation procedures, including a 30-day acceptance period and conditions for withdrawal.
  • Notice Period: Allowing employees under specified term contracts to request early termination. It reduces the notice period for employees terminating an unlimited term contract from 60 to 30 days.
  • Outsourcing and Training: Establishes the concept of outsourcing and imposes training obligations on employers for Saudi nationals.

The Ministry of Human Resources and Social Development is tasked with updating the executive regulations in accordance with these changes.

KSA Labor Law

Ashrakat Sayed
By Ashrakat Sayed

Ashrakat joined Thomson Reuters in 2022 as a Content Specialist. She is a graduate with Bachelor's Degree from York University, and a Paralegal Diploma from Seneca College. Ashrakat is also a Licensed Paralegal by the Law Society of Ontario, Canada. She is a native Arabic speaker and fluent in English. 

Ashrakat is currently a Legal Editor for Thomson Reuters MENA. She is based in Dubai and is responsible for maintaining and providing the latest legal content updates in the MENA region. 

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