Saudi Arabia Extends Maternity Leave and Revises Labor Laws
In a significant move to enhance workers’ rights and align with international labor standards, Saudi Arabia has introduced comprehensive amendments to its Labor Law. These changes, approved by the Saudi Cabinet on August 6, 2024, aim to create a more attractive work environment and support the nation’s Vision 2030 objectives.
Key Amendments:
- Extended Maternity Leave: The duration of maternity leave for female employees has been increased from 10 to 12 weeks. This leave can commence up to four weeks before the expected delivery date, as determined by a certified medical professional. Employers are prohibited from engaging female workers in any professional activities during the six weeks immediately following childbirth. Additionally, women are entitled to an extra month of unpaid leave post-maternity if desired. In cases where a child is born with an illness or disability requiring continuous care, mothers are granted an additional fully paid month, with the option for another month of unpaid leave.
- Paternity Leave: Male employees are now entitled to three days of paid paternity leave, to be taken within seven days of their child’s birth. This provision recognizes the importance of paternal involvement during the early days of a child’s life.
- Bereavement Leave: The amendments introduce three days of paid leave for employees upon the death of a sibling, expanding the scope of bereavement leave beyond immediate family members.
- Training Contracts: New provisions have been added to define the rights and responsibilities of both employers and trainees, ensuring clarity and fairness in training agreements.
- Overtime Compensation: Employers now have the option to offer compensatory leave in lieu of overtime pay, provided they obtain the employee’s consent. This offers flexibility for both parties in managing work hours and compensation.
- Contractual Terms for Non-Saudi Workers: The amendments establish mechanisms for determining and renewing contracts for non-Saudi employees, especially when the contract duration is unspecified. This aims to provide greater job security and clarity for expatriate workers.
- Probationary Period: The maximum trial period for new employees has been set at 180 days, ensuring a standardized approach to evaluating new hires.
- Definitions and Procedures: The amendments introduce clear definitions for terms like “resignation” and “assignment,” and outline specific procedures for submitting resignations, enhancing transparency in employment processes.
- Contract Termination in Bankruptcy Cases: A worker’s contract can now only be terminated during bankruptcy proceedings if a final court judgment is issued, protecting employees’ rights during their employer’s financial difficulties.
- Notice Periods for Indefinite Contracts: The notice period for terminating an indefinite contract is set at 30 days if initiated by the employee and 60 days if initiated by the employer, providing a balanced approach to contract termination.
- Penalties for Unauthorized Employment: The amendments impose fines ranging from SAR 200,000 to SAR 500,000 for employing workers without proper licensing, emphasizing the importance of adhering to legal employment practices.
- Maritime Employment Regulations: Specific policies have been mandated for training and qualifying employees in maritime jobs, focusing on improving skills and safety standards in this sector.
These amendments are slated to take effect 180 days after their publication in the official gazette, allowing employers and employees ample time to adapt to the new regulations. The Ministry of Human Resources and Social Development conducted a comprehensive review of these changes, engaging over 1,300 stakeholders, including private sector entities, government agencies, and labor experts, to ensure the reforms meet the needs of the evolving workforce.
By implementing these reforms, Saudi Arabia aims to enhance job stability, protect contractual rights, and foster professional development, thereby creating a more inclusive and dynamic labor market in line with its Vision 2030 goals.
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