Overview Of Saudi Labor Law

Introduction

The main legislation governing employment in the Kingdom of Saudi Arabia is the Labor Law issued under Royal Decree No. M/51 dated 23/08/1426H (26 September 2005). This law serves as the foundation of employment practices and has undergone significant amendments to address evolving labor needs and economic priorities. The amendments were introduced under the following Royal Decrees:

• Royal Decree No. M/24 dated 12/05/1434H (24 March 2013);
• Royal Decree No. M/46 dated 05/06/1436H (25 March 2015); and
• Royal Decree No. M/134 dated 27/11/1440H (30 July 2019).

This article delves into the key aspects of the Saudi employment regime, encompassing regulations for both foreign and Saudi workers, termination procedures, and end-of-service benefits. Additionally, it explores the rationale and implications of these regulations, offering an in-depth perspective on their application and aligning with Saudi Arabia's Vision 2030 goals of