Terminologies in Saudi Labor Law Amendments 2025​

Saudi labor law amendments have recently introduced a comprehensive set of changes to the Labor Law Regulations in Saudi Arabia, underscoring the vital role of the business sector in driving economic growth. The reform package includes amendments to 38 articles, the repeal of 7 articles, and the addition of 2 new ones, all designed to protect workers’ rights, enhance workplace quality, boost the employment of Saudi nationals, and strengthen market competitiveness.

These amendments officially came into force in February 2025 and are now fully applied across all establishments covered by the Saudi Labor Law.

New Terminology Introduced in Saudi Labor Law Amendments​

1. Resignation

Saudi labor law amendments​ provide a clear and explicit definition of resignation to safeguard employees’ rights and ensure balance in the employment relationship. Resignation is described as a written request submitted by an employee under a fixed-term contract to their employer willingly and without pressure, condition, or coercion. The employer is expected to respond within a specified period.

• The resignation is considered automatically accepted if 30 days pass from the date of submission without any response from the employer even if the employer later issues a rejection after this period.
• The employer has the right to postpone the effectiveness of the resignation for a period not exceeding 60 days, provided that a written decision is issued within the first 30 days from the date of submission, clearly stating the reasons for postponement. If no such written decision is issued within that time limit, the resignation is deemed accepted automatically.

2. Labor Assignment (Isnad)

This term refers to a licensed company supplying an employee to temporarily work for an entity other than the original employer under a system officially regulated by the Ministry of Human Resources.

Read also: Saudi Labor Law Vacation Pay: A Comprehensive Guide

New Saudi Labor Law Amendments for Non-Saudi Workers

• Article 37 of the Labor Law stipulates that the employment contract of a non-Saudi worker must be written and fixed-term. If the duration is not expressly stated in the contract, it will be deemed valid for one year starting from the employee’s commencement date rather than being tied to the expiry date of their residency permit as was the case under the previous law. If both parties continue the employment relationship after that period expires, the contract is considered automatically renewed for the same duration, unless otherwise agreed.
• Under Article 40, the law makes it clear that the employer is responsible for paying any penalties related to late renewal of a non-Saudi worker’s residence permit, provided the delay is due to the employer’s negligence ensuring that the worker is not burdened with any financial consequences beyond their control.

Check out: The Saudi Labor Law: Key Regulations & Employee Rights

Probation Period Changes under the Saudi Labor Law Amendments​

Previously, the probation period lasted 90 days, with the possibility of extending it by mutual agreement to up to 180 days, which often led to confusion or misinterpretation.

Under the new system, the rules have become much clearer. The probation period is now set directly at a maximum of 180 days, and must be clearly stated in the employment contract from the outset, without the need for any separate agreement to extend it later.

The amendments also allow waiving the probation period entirely, if both parties agree. In addition, it is now permissible for either the employer or the employee to terminate the contract during the probation period, while removing the previous right of unilateral termination without notice or justification.

Saudi Labor Law Amendments Regarding the Documentation of Employment Contracts

The latest amendments to the Saudi Labor Law now require all employment contracts to be documented electronically through the “Qiwa”, replacing the previously used paper-based documentation system.

In the past, Saudi courts sometimes differentiated between paper contracts and electronically documented contracts, which led to varying legal interpretations. The new amendments settle this issue by explicitly stating that only electronic contracts documented with the Ministry of Human Resources are legally recognized, and no legal effect is given to contracts unless they are officially registered through the Ministry’s system.

However, to safeguard workers’ rights, the law grants employees the ability if the employer fails to document the contract electronically to prove their employment relationship and rights by any available means, including paper contracts or other valid evidence.

New Labor Law Amendments on Employer Obligations Toward Employees

Under Article (61) of the new Saudi Labor Law, employers are now required to:

• Promote equal opportunity and non-discrimination in employment, and refrain from engaging in any practices that undermine equality including exclusion, preference or distinction among job applicants or employees based on race, color, gender, age, disability, marital status, or any other form of discrimination.
• Provide mandatory housing and transportation benefits, meaning the employer must either supply suitable accommodation and appropriate transport or pay a housing and transportation allowance if such services are not provided directly. If the allowance is not specified in the contract, it should be determined based on prevailing practice and mutual agreement between the employer and employee.

How Do the New Saudi Labor Law Amendments Help Protect the Rights of All Parties?

The recent amendments were introduced to create a more transparent and balanced relationship between employers and employees by:

• Clearly defining employer responsibilities and obligations
• Increasing clarity and transparency in the workplace
• Enhancing the competitiveness and attractiveness of the Saudi labor market
• Encouraging employers to train and upskill their workforce
• Supporting employee interests and long-term job stability

Overall, these amendments aim to foster a fair, stable, and productive work environment for everyone involved.
 If you need clarification on any legal procedure or want to better understand your rights and obligations don’t hesitate to consult a labor lawyer at Etqan Law Firmfor fast, trustworthy legal advice that keeps you on the right track.

Conclusion

The 2025 Saudi labor law amendments represent an important step toward improving the work environment, protecting employee rights, and enhancing competitiveness in the labor market. To ensure a full understanding of your legal rights and obligations, you can always seek guidance from a professional team. Etqan Law Firm provides reliable and prompt legal consultations to help you navigate the new system safely and confidently.

The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +966550600204, +966551020060.

Learn about: Your Rights Under Article 53 Saudi Labor Law (2025 Update)

Additionally, feel free to visit our branches located at:

• Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
• Riyadh: King Abdulaziz Street, across from the Kingdom Tower
• Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.

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