Latest Updates to the Saudi Labour Law (2025): Strengthening Digital Governance, Workforce Development & Family-Friendly Policies
Saudi Arabia has announced significant amendments to its Labour Law, effective February 2025, reinforcing its commitment to building a modern, transparent, and competitive labor market aligned with Vision 2030.
The reforms aim to enhance workforce protection, digitize employment processes, support national talent development, and create a more balanced and family-friendly work environment.
1. Mandatory Digital Contract Authentication - Article (52)
- Employers must digitally authenticate all employment contracts via the Qiwa platform upon commencement of employment.
- Employee records must be retained for a minimum of five years.
Goal: Boost transparency, prevent disputes, and streamline workforce compliance processes.
2. Non-Saudi Employment Contracts - Article (37)
- If the contract of a non-Saudi employee does not specify a duration, it will be deemed as a one-year contract starting from the employment date.
- It will automatically renew as long as both parties continue the employment relationship.
Goal: Enhance clarity and fairness in expatriate employment terms.
3. Probation Period Update - Article (53)
- Maximum probation period extended to 180 consecutive days.
- Cannot be extended or repeated except in specific cases with written agreement.
Goal: Give employers a reasonable evaluation period while ensuring clarity for employees.
4. Resignation and Legal Definitions - Article (80) & New Definitions Clause
- "Resignation" is now formally defined as a written and voluntary request by the employee.
- Employer approval may be required where specified in the contract.
