Recent Updates to Saudi Labor Laws

Saudi Arabia has introduced several key changes to its labor laws:

1. Contract Duration: Non-Saudi worker contracts are set to one year, automatically renewing if no duration is specified or if no written contract exists.
2. Employer Responsibilities: The employer must cover recruitment, iqama, and work permit fees, renewals, profession changes, exit and return permits, and the worker’s return ticket home after the employment relationship ends. They also bear the cost of transferring a worker's services.
3. Worker Responsibilities: Workers must cover their return costs if unfit for work or if leaving without a legitimate reason.
4. Disciplinary Appeals: Workers must appeal disciplinary penalties in writing within 30 days.
5. Resignation & Notice Period: Resignation requests are automatically accepted after 30 days, and workers can withdraw their resignation within 7 days. The notice period for contract termination by a worker is reduced to 30 days, while it remains 60 days if terminated by the employer.
6. Overtime Compensation: Employers can now compensate overtime with paid leave, with the worker's agreement.
7. Leave Policies: Bereavement leave now includes the death of a sibling, and maternity leave is extended to 12 weeks with full pay.

These updates aim to enhance clarity and fairness in the workplace for both employers and employees.