Labor Reforms For Both Foreign And Local Workers

Sweeping Saudi Arabia labor reforms impacting employer-paid maternity leave, employment contracts and paid time off, among other changes, will require action from employers to maintain compliance.

Employer Action Code: Act

The cabinet has approved a labor law reform package that will amend the 2005 Labor Law to "create a more attractive work environment for employees" in accordance with "the goals of Saudi Vision 2030." The reforms are similar to an earlier so-called Labor Reform Initiative announced in 2020 that was derailed by the COVID-19 pandemic.

Key details

Changes to the labor law include:

• Increasing the duration of employer-paid maternity leave from 10 to 12 weeks (six weeks prenatal and six weeks postnatal)