Riyadh, Saudi Arabia – September 13, 2024: Saudi Arabia has unveiled significant amendments to its Labour Law, aiming to enhance workplace rights, promote a more flexible labour market, and attract foreign investment.
Table of Contents
Key Changes:
- Extended Workweek: The maximum permissible weekly work hours have been increased from 48 to 50 hours, with overtime pay remaining mandatory.
- Flexible Working Arrangements: Employers are now permitted to introduce flexible working arrangements, including remote work and compressed workweeks, subject to mutual agreement with employees.
- Termination Procedures: New regulations have been introduced to streamline the termination process, ensuring fair treatment for both employers and employees.
- End-of-Service Benefits: The calculation of end-of-service benefits has been revised to align with international standards.
- Female Empowerment: The law now allows women to work in all professions, including those previously restricted to men. It also mandates equal pay for equal work, regardless of gender.
- Foreign Worker Rights: The law has been amended to protect the rights of foreign workers, including ensuring fair wages, working conditions, and access to healthcare.
Impact on the Labour Market:
These reforms are expected to have a significant impact on Saudi Arabia’s labour market. By promoting flexibility and attracting foreign investment, the government aims to create more jobs and boost economic growth. The changes also reflect the country’s commitment to improving the quality of life for its citizens and residents.
Experts’ Views:
Industry experts and labour activists have expressed mixed reactions to the new Labour Law. While some applaud the government’s efforts to modernize the labour market, others raise concerns about potential challenges in implementation and enforcement.
Overall, the introduction of these sweeping changes marks a significant step forward for Saudi Arabia’s labour market. It is anticipated that the reforms will have a positive impact on the country’s economic development and social progress.