Key Labor Law Amendments in Force Since February 2025: What Should Businesses Review?

When Did the Amendments Take Effect?

The amendments took effect on 19 February 2025, corresponding to 20/8/1446 AH, following their issuance by Council of Ministers Resolution No. 117 and Royal Decree No. M/44. They amended 38 articles, repealed 7 articles, and added two articles.

Notice Periods in Indefinite-Term Contracts

The notice period is now 30 days if the contract is terminated by the employee, and 60 days if it is terminated by the employer. This calls for reviewing contract templates and termination letters that relied on a single period for both parties.

Resignation Procedures

The amendments introduced clearer rules for resignation: it must be submitted in writing and is deemed accepted if 30 days pass without a response from the employer. The employer may defer acceptance for a period not exceeding 60 days in the interest of the business, and the employee may withdraw the resignation within seven days unless it has been accepted. HR departments need a written procedure for receiving resignations and responding to them on time.

Probation Period

The probation period must be stated in the employment contract and may not exceed 180 days in any case.

Leave and Overtime

• Maternity leave is now 12 weeks of paid leave.
• Three days of paid leave have been added upon the death of a brother or sister.
• By agreement of both parties, overtime may now be compensated with paid leave instead of overtime pay.

What Should a Business Review Now?

• Employment contract templates: probation period and notice periods.
• Internal work regulations: leave, overtime, and resignation.
• HR procedures for receiving, documenting, and responding to resignations.
• Termination letters and final settlement releases.
• Training line managers on the new procedures.

You may use the HR Legal Advisory service to review and update these documents.

Summary of the 2025 Saudi Labor Law Amendments in Points

This summary brings together the most significant changes to the Saudi Labor Law under the amendments effective from February 19, 2025, citing the article number where it could be verified:

• Notice (Article 75): 30 days if the employee terminates an indefinite-term contract, and 60 days if the employer terminates it; the notice must be in writing.
• Resignation: Submitted in writing, and deemed accepted after 30 days from its submission; the employer may defer accepting it for a period not exceeding 60 days.
• Probation Period (Article 53): It must be expressly stated in the contract with its duration specified, and its total may not exceed 180 days.
• Contract of a non-Saudi (Article 37): It must be in writing and for a fixed term; if it does not specify a term, its term is deemed to be one year from the date actual work began.
• Maternity leave: 12 weeks at full pay.
• Care of a Newborn with a Disability: One month's leave at full pay starting after maternity leave ends, with the right to extend it by one month without pay.
• Death of a Sibling: Three days' leave with pay.
• Overtime (Article 107): Overtime pay remains the hourly wage plus 50% of the basic wage, with the option of counting paid leave instead, subject to the employee's consent.

The official framework for the amendments and their implementing regulation

The amendments were issued by Council of Ministers Resolution No. 117 dated 2/2/1446H and Royal Decree No. M/44 dated 8/2/1446H, and were stated to take effect 180 days after their publication in the Official Gazette. With their entry into force, the Ministry of Human Resources and Social Development published the Implementing Regulation of the Labor Law and its annexes.

According to the Ministry's announcement, the amendments also included adding definitions for resignation and outsourcing, procedures for employee grievances, penalties for engaging in labor recruitment activity without a license, policies for training and qualification, and amendments to the provisions on maritime work.

What did the key announced amendments not address?

The amendments announced by the Ministry focused on contracts, leave, resignation, and training. Among the highlighted changes, none were mentioned to the rules for calculating the end-of-service award or to the compensation for termination for an unlawful reason under Article 77 of the Labor Law. Nevertheless, the updated text should be consulted when applying any article, since the wording of some articles was amended or their details referred to the executive regulations.

Reference to the amended law remains important for contracts concluded before February 19, 2025 that continued after that date, since notice periods, resignation procedures, and leave are applied according to the text in force at the time of the event. It is therefore advisable to document the date of each action taken upon termination, resignation, or a leave request.

What Do the 2025 Labor Law Amendments Mean for the Employee?

• Submit the resignation in writing and keep proof of the date it was submitted, since the acceptance period is calculated from it.
• Review the probation clause in your contract, since probation must be expressly stated and its duration specified.
• If the employer terminates your indefinite-term contract, the prescribed notice period is at least 60 days.
• Check the leave provisions your business's work organization regulation applies after the amendment, such as maternity leave and bereavement leave for a sibling.
• Replacing overtime pay with paid leave requires your consent, so document that consent and the number of days it corresponds to.
• If you are not a Saudi national and your contract does not specify a term, its term is one year from the date actual work began.

If a dispute arises over applying these provisions, see the Labor & Employment Disputes service.

Frequently asked questions

When did the 2025 Labor Law amendments take effect?

The amendments took effect on Wednesday, 20/8/1446H, corresponding to February 19, 2025, per the announcement of the Ministry of Human Resources and Social Development. They included amending 38 articles, deleting 7 articles, and adding two articles, and the Executive Regulations of the Labor Law and their annexes were published together with them, so both should be consulted when applying the Law.

What is the notice period under the Labor Law after the amendment?

In an indefinite-term contract, the written notice period is now at least thirty days if termination is by the employee, and at least sixty days if it is by the employer. This requires reviewing contract templates and termination letters that previously used a single notice period for both parties.

What is the duration of maternity leave under the Saudi Labor Law after the amendment?

Maternity leave became twelve weeks at full pay after the amendments. If the newborn has a disability, the female employee is entitled to one month's leave at full pay starting after maternity leave ends, with the right to extend it by one month without pay. It is advisable to check the business's regulation to confirm it has been updated.

Is a Resignation Deemed Accepted if the Employer Does Not Respond?

Yes, a resignation submitted in writing is deemed accepted if thirty days pass from its submission without a response. The employer may defer accepting it for a period not exceeding sixty days for the benefit of the work, and the employee may also withdraw it within seven days unless it has already been accepted.