The global solution for human resource professionals, combines custom research, strategic white papers, country primers, webinars and OnDemand educational programs, and the expert guidance...
July 10—Saudi Arabia’s Council of Ministers has approved 38 amendments to the country’s labor law as part of an effort to encourage more Saudi nationals to work in the private sector.
High unemployment of locals has emerged as one of the kingdom’s largest social and economic problems in the wake of the “Arab Spring” and the sharp decline in oil prices. To help address this challenge, the government has made it a priority to reduce the country's dependence on foreign labor and increase the number of Saudi nationals in the private sector.
The new amendments include several changes designed to more closely align the terms and conditions of employment in the private and public sectors. At present, the much higher costs associated with employing Saudi nationals are one of the main reasons for the disproportionate number of foreign workers in the private sector.
Among the changes set to take effect, the existing duty on employers with 50 or more employees to train a certain portion of their Saudi workforce has been raised from 6 percent to 12 percent. The amendments also increase the notice period for termination of indefinite-term contracts from 30 days to 60 days for salaried workers and boost the current maximum probationary period from 90 to 180 days.
A rest period of at least 30 minutes will also be required after five hours of work, and employers will need to provide a greater number of days for marriage, paternity and compassionate leave. Other amendments touch on employment terms related to employment contracts, wage payment and whistleblowing.
Although approved, the changes will not be effective until promulgated by the Ministry of Labor later this year.
To contact the editor responsible for this story: Rick Vollmar at email@example.com
For more information on Saudi HR law and regulation, see the Saudi Arabia primer.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)