New Saudi Labor Law Amendments For Workers and Employers
The Saudi Labor Law Amendments introduced major changes that affect both Saudi nationals and expatriate workers. These reforms came after the government updated dozens of labor law articles in 2024, with full implementation starting in February 2025.
These changes aim to improve worker protection, clarify employment contracts, enhance workplace fairness, and modernize labor regulations. They also align with the Kingdom’s long-term workforce reforms under Vision 2030.
In this detailed guide, we explain all key Saudi Labor Law Amendments clearly. We also provide practical examples, comparisons with old rules, and insights for Pakistani expats working in Saudi Arabia.
Overview of Saudi Labor Law Amendments
The amendments were announced by the Ministry of Human Resources and Social Development in Saudi Arabia.
Key Objectives of the Amendments
The updated law focuses on:
- Strengthening worker rights
- Improving job stability
- Increasing work-life balance
- Clarifying employer obligations
- Enhancing transparency in contracts
Major Changes at a Glance
| Area | New Rule | Old Rule |
|---|---|---|
| Death Leave | 3 paid days for sibling death | 1 day only |
| Maternity Leave | 12 weeks fully paid | 10 weeks |
| Contract Renewal | Auto renewal for 1 year | Until Iqama expiry |
| Notice Period | 30–60 days standard | Not clearly defined |
| Probation Period | Max 180 days | Less clear limit |
| Overtime | Pay OR compensatory leave | Mostly pay only |
Death Leave Amendment – More Compassionate Policy
What Changed?
Workers can now take 3 fully paid working days if a sibling passes away. Previously, employees were allowed only 1 paid day. This leave applies to all Saudi employees, expat workers in both private and public sectors.
Why This Change Matters
This amendment reflects:
- Recognition of family responsibilities
- Cultural sensitivity
- Improved employee well-being
Maternity Leave Increase – Support for Working Women
New Rule Explained
Female employees are now entitled to 12 weeks of fully paid maternity leave. Previously, the duration was only 10 weeks.
Breakdown of Leave Period
The leave includes:
- Pre-delivery leave
- Post-delivery recovery
- Childcare bonding time
Benefits of This Amendment
This change helps:
- Improve maternal health
- Reduce workplace stress
- Encourage female workforce participation
Impact on Employers
Employers must:
- Pay full salary during leave
- Protect employee job position
- Avoid termination during maternity period
Fixed-Term Contract Renewal – Clear Rules for Expats
New Contract Validity Rule
For non-Saudi employees:
- All contracts are fixed-term
- If duration not mentioned → valid for 1 year
Automatic Renewal Rule
If no renewal clause exists, contract automatically renews for another year.
Why This Matters for Expats
This provides:
- Greater job stability
- Predictable employment terms
- Legal clarity in disputes
Notice Period in Fixed-Term Contracts
Standard Notice Requirements
If the contract does not specify notice:
| Party | Required Notice |
|---|---|
| Employee | 30 days |
| Employer | 60 days |
Purpose of This Rule
This ensures fair termination processes, adequate transition time and protection against sudden job loss.
Probation Period Limit – Clear Maximum Duration
Updated Probation Rule
The probation period cannot exceed 180 days under any circumstances.
Why This Is Important?
This prevents employers from:
- Keeping workers indefinitely on probation
- Avoiding benefits obligations
- Exploiting contract loopholes
What Happens After Probation?
Employees become entitled to:
- Full labor protections
- Leave benefits
- End-of-service benefits
Overtime Compensation – Flexible Options
New Flexibility Rule
Employees now have two options:
- Overtime pay
- Paid compensatory leave
Benefits of This Change
This improves:
- Work-life balance
- Employee choice
- Workplace flexibility
Example
If an employee works extra hours:
They can choose:
- Extra salary payment
OR - Additional leave days
Impact of Saudi Labor Law Amendments on Pakistani Expats
Key Advantages
These reforms benefit Pakistani workers by providing:
- Stronger job security
- Clear contract rules
- Better leave policies
- Fair termination procedures
Comparison: Saudi Labor Law Before vs After 2025
| Category | Before | After |
|---|---|---|
| Worker Protection | Moderate | Strong |
| Contract Clarity | Limited | High |
| Leave Benefits | Basic | Expanded |
| Flexibility | Low | Improved |
Future Outlook of Saudi Labor Reforms
The amendments signal:
- Continued workforce modernization
- Increased expat protections
- Alignment with international labor standards
Further reforms are expected in areas such as:
- Digital labor contracts
- Flexible work arrangements
- Remote employment regulations
Frequently Asked Questions (FAQs)
When did the amendments take effect?
They became effective in February 2025.
Do these rules apply to expats?
Yes, all expatriate workers are covered.
Can employers extend probation beyond 180 days?
No, it is strictly prohibited.
Is overtime pay mandatory?
Employees can choose pay or compensatory leave.
What happens if a contract has no duration?
It automatically becomes valid for one year.
Also read: Saudi Arabia Visa Ban for 14 Countries: New List
Final Thoughts
The Saudi Labor Law Amendments 2025 represent one of the most significant workforce reforms in recent years. These changes strengthen employee protections, clarify employment processes, and provide greater flexibility for both workers and employers.
For Pakistani expatriates, understanding these amendments is essential. Awareness ensures better job security, fair treatment, and proper legal protection while working in Saudi Arabia.
As labor reforms continue, staying informed remains the key to safeguarding rights and making confident career decisions in the Kingdom.
Source: HRSD Ministry