Saudi Arabia’s economy is drastically shifting, part of Vision 2030. Updates in the labour laws of Saudi Arabia form the core of employment contracts, leave policies, and much more. Be it a business owner or an expat employee, staying in tune is no longer an option but a necessity.
Saudi Arabia is now opening up its economy for a significant historic transformation as it opens its doors to global investment and modernization of its business environment. The most significant component of this evolution is a complete overhaul of the country’s labour regulations.
It is important for multinational corporations to know about labour laws in Saudi Arabia. This becomes critical for local employers, emerging market startups, and all employees, especially expatriates, who form a significant part of the workforce.
The Labour Law updates in 2025 mirror the continuous drive of Saudi Arabia towards fairness, transparency, and competitiveness; thus, it makes compliance even more important than ever.
The Labour laws under Saudi Arabia are intended for private sector employers and employees, including Saudi nationals and expatriates. It aims at both and sees to it that these will have an efficient, fair working and living environment during work.
Who’s Covered:
Who’s Exempt:
Regulatory Authority:
The Ministry of Human Resources and Social Development (MHRSD) will be responsible for enforcing labour law in Saudi Arabia and issuing further amendments to the said laws.
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Several key changes are reflected in a more inclusive and modern workplace:
The amended labour laws in Saudi Arabia give a wide range of rights to employees, notably including:
Stable labour policy obligates employers in Saudi Arabia to treat all workers fairly and provide them with legal documents. Other requirements include:
These expatriates working in the Kingdom must also observe the following specific provisions of the labour laws in Saudi Arabia, along with:
Failure of any of those conditions will lead to:
Some common violations are withholding a contract, failure to pay salaries in a timely fashion, and not affording the Saudization quotas.
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Labour compliance is no longer merely a legal obligation to be fulfilled but rather a competitive advantage.
Q1: Do labour laws apply to small businesses?
Yes, all private businesses comply with labour laws except for specific exemptions, such as for domestic workers.
Q2: Are expats entitled to the same leave as Saudi nationals?
Yes, otherwise expats have equal rights in the area of annual leave, sick leave, and public holidays.
Q3: Can an employer extend probation beyond 180 days?
No, the new law by 2025 provides for a maximum of 180 days of probation, including further extension.
Q4: How are labour disputes resolved?
Disputes are first addressed by the Labour Disputes Settlement Office, followed by the labour courts if unresolved.
To keep up with the labour laws of Saudi Arabia is no longer a matter of personal discretion; it is imperative for business. The 2025 updates are still reinforcing this nation’s ambition to become a world-class international hub for business, with employee welfare at the core of its endeavours.
Need assistance to help clarify the legal and HR environment surrounding business in Saudi Arabia? For expert guidance on establishing businesses, complying with regulations, and employee management in the Kingdom, contact Arnifi.
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