Global Compliance – Saudi Arabia
Saudi Arabia: Upcoming Amendments to the Labor Law
On August 6, 2024, the Saudi Arabian Council of Ministers approved significant changes to the Saudi Labor Law (“Amendment“). The amendment will take effect 180 days (tentatively January 2025) after its publication in the Royal Decree in Umm Al Qura.
The amendments represent a major shift in employment regulations throughout the Kingdom, covering key areas such as overtime, maternity leave, paternity leave, and bereavement leave. The upcoming revisions to the Implementing Regulations will provide detailed guidance on these changes to ensure clear and consistent application. The amendments are as follows –
Overtime
Currently, any hours worked beyond an employee’s standard working hours (i.e., 8 hours per day and 48 hours per week) are considered overtime. Employees who work overtime are entitled to additional pay, calculated at a minimum of 50% above their basic wage.
Under the amendment, employees will have the right to take time off in lieu, instead of an overtime premium of 50% above their basic wages. Employers will have the flexibility to either pay the overtime premium or offer paid time off equal to the overtime hours worked by the employee.
Specific guidelines on how to implement time off in lieu shall be provided in forthcoming regulations.
Maternity Leave
Currently, female employees are entitled to 10 weeks (about 2.5 months) of fully paid maternity leave. This leave can be taken flexibly, with up to 4 weeks starting before the expected delivery date. After childbirth, the law prohibits employing a woman for six weeks. Additionally, women may extend their leave by an extra unpaid month.
The amendment shall extend the maternity leave to 12 weeks of fully paid leave. This leave will include 6 weeks following childbirth, with the remaining 6 weeks to be used at the employee’s discretion, beginning from the estimated delivery date as confirmed by a certified medical certificate. If the birth occurs later than anticipated, any remaining leave may be taken as unpaid leave.
Paternity leave
Currently, male employees are entitled to 3 working days of paid paternity leave.
The amendment upholds this entitlement but specifies that these days must be taken within 7 days following the birth, whereas the previous law did not stipulate a specific timeframe.
Bereavement Leave
Currently, there is no provision for bereavement leave in the event of a sibling’s death.
The amendment will introduce a new entitlement, granting employees 3 days of paid leave in the event of the death of a brother or sister, calculated from the date of the death.
Takeaway – Employers must take proactive steps to comply with the upcoming changes and review and potentially revise their policies to align with them.
