One of the greatest gifts given to workforce in Saudi Arabia by Saudi Government is the implementation of 38 new amendments in Saudi Labor Law effective from Hijri Year 1437. With 38 new amendments in Saudi Labor Law effective from Hijri Year 1437, several new rights have been given to employees and heavy penalties are imposed on the employers who violate the application of Saudi Law. The rules related to notice period, entitled leaves in case of marriage, birth of child, death of relative, examination leave, sick leave, maternity leave, leave for Iddah have also been changed. I have summarized all 38 new amendments in Saudi Labor Law which have already been effective from Hijri Year 1437 below.
38 New Amendments in Saudi Labor Law effective from Hijri Year 1437
- Article 5 represents the parties that are affected by the Saudi Labor Law (SLL) after amendments.
- Article 7 represents the parties that are excluded from the Saudi Labor Law (SLL) after amendments.
- According to Article 11, if the employer delegates take in help from another party to perform their original tasks and work, that party should be offered and given all the benefits and rights by the employer just as to his other employees.
- Article 11 also includes a new rule of granting the Minister of Labor all the power to make the labor market better and hence organize the certain transfer of manpower.
- Articles 12,13 and 14 were merged together to form one article with two parts;
- The Ministry of Labor (MOL) will be in charge to establish a unified pattern for Labor that would include rules/laws and regulations. Also, he will establish a functioning mechanism for the approval of these rules and laws.
- All the employers must abide by the policies set forth by the Ministry of Labor. They can, however, add more policies keeping intact with the original SLL. It’s important for them to keep people aware and thus must announce these policies.
- If this issue has already been addressed in the contract, the contract will apply.
- In case of fixed term contract, employer or employee whoever terminates the contract due to invalid reasons, would be required to compensate the other party with the salaries of the remainder period of the contract. The sum of compensation to be paid to aggrieved party cannot be less than 2 months salary.
- In case of termination due to invalid reason in indefinite contract, aggrieved party is entitled to 15 days wages for each year of service. The sum of compensation to be paid to aggrieved party cannot be less than 2 months’ salary. - Saudi Gazette
- In order to better understand the concept of Fixed Term Contract and Indefinite Contract, read into this link “Fixed Term and Indefinite Contract under Saudi Labor Law”
- Article 78 replaces the context in the original SLL of Article 78 with “If the notification from the employer or the employee is entitled to have authorized absence with a salary during the notification period for a day or 8 hours per week until he finds another job”.
- Article 80 states that unless the termination of the agreement is due to any of the reasons listed below, the employer will not be authorized to terminate the agreement without giving a reward to the employee, informing him, compensating him or without giving the employee the chance to plea for an appeal.
- Article 83 elaborates more on “Non-Compete Clause”. Recommended: Employee cannot work for a Competitor under Article 83 of Saudi Labor Law
- Article 90 is regarding the way of payment of the salary and other payments to different types of employees.
- According to article 101 of the SLL, no less than half an hour per each break every day for prayer and lunch shall be given to the employee. Also, no more than 5 continuous hours of work without a break per day and must not stay more than 12 hours per day at his workplace.
- Article 113 states that the
- Employee is entitled to a 5-day leave with pay in case of the demise of their spouse, parents or children.
- 5 Day leave is also allowed in case of marriage
- 3-day paternity leave with pay is also granted.
- Recommended: Entitled Leaves for Employees as per Saudi Labor Law
A Female Employee working in Saudi Arabia are entitled to a leave in case of death of her husband. The period of leave varies between Muslim and Non-Muslim employee. Recommended: Leaves for Women in case of Death of her Husband under Saudi Labor Law
Job Continuation under Saudi Labor Law
- Compensation in case of Work Injury as per Saudi Labor Law
- Right of Air Ticket as per Saudi Labor Law
- Rules regarding Emergency Leave in Saudi Arabia
- Rights of Employees in Absence of Contract in Saudi Arabia
- Leave Encashment under Saudi Labor Law