Saudi Labor Law Amendments: What Should Employees and Employers Review?

Practical legal guide | Laws and Regulations | Sources reviewed: 14 November 2026

An employer may continue using a contract template prepared years ago, while an employee may rely on a legal provision published before the latest amendment. Either may then make decisions based on notice periods or resignation rules that are no longer current. The problem is not simply being unaware that Saudi Labor Law has changed; it is applying outdated documents and procedures to an employment relationship today. What should be reviewed in practice?

In brief: The amendments to the Saudi Labor Law entered into force on 19 February 2025. According to the Ministry of Human Resources and Social Development, they amended 38 articles, repealed seven and added two. What matters in practice is not merely the number of amendments, but reviewing employment contracts, documentation, probation, notice periods, resignation and leave, while checking the applicable Implementing Regulations and decisions for each establishment.

First: Why consult the law currently in force rather than an old summary?

The Ministry announced that the amendments took effect on 20 Sha'ban 1446 AH, corresponding to 19 February 2025. It also published the Implementing Regulations and their annexes as the amendments came into force, and released an updated questions-and-answers guide in April 2026 to clarify practical issues. A press summary can introduce the changes, but it is not a sufficient basis for a decision about a contract, procedure or dispute without checking the current wording of the relevant provision, its regulations and associated decisions.

Reviewing an existing employment relationship also requires identifying when the contract was concluded, the facts giving rise to the right in question, and the termination date, if any. Whether an amendment affects earlier or continuing arrangements cannot be determined merely by saying that the “new law applies”; transitional provisions, rules on the application of laws over time and the specific facts must be examined.

Second: Documenting an employment contract is no longer a minor administrative matter

Article 51 requires employment contracts to be written and documented in accordance with applicable rules. It also states that a contract is deemed to exist even if it is not written, and that, in such a case, the employee alone may prove the contract and the rights arising from it by all methods of proof. This creates two practical responsibilities: employers should review their contract templates and electronic approval and documentation processes, while employees should read the terms shown on the platform and avoid approving details that do not reflect reality.

A contract review should cover basic wages, allowances, job title, place of work, contract type and duration, notice period and any additional obligations. The written contract, registered information and actual working arrangements should also be consistent; discrepancies can give rise to disputes even where electronic documentation has been completed.

Third: Probation must be expressly agreed and clearly limited

Article 53 requires the probation period to be expressly stated in the contract and its duration clearly specified, with an overall maximum of 180 days in all cases. The Implementing Regulations set out rules concerning leave that is excluded when calculating that period. It is inaccurate to treat probation as an unrestricted power of the employer, or to assume that it arises automatically when an employee is hired; the contractual wording and applicable provisions must be reviewed.

It is also necessary to check whether the employee has previously been placed on probation by the same employer. Article 54 generally prohibits repeated probation, subject to specified exceptions and conditions. Termination during a valid probation period must be distinguished from termination after the period ends, as the potential legal consequences differ.

Fourth: Notice periods for indefinite-term contracts

For indefinite-term contracts under which wages are paid monthly, Article 75 distinguishes between the parties when termination is initiated for a legitimate reason: the employee must give at least 30 days' written notice, whereas the employer must give at least 60 days' written notice. Where wages are not paid monthly, the provision lays down a different rule requiring at least 30 days' written notice from the party terminating the contract.

These periods should not be applied automatically to fixed-term contracts or every type of termination without analysing the reason and the legal characterization of the event. Employers must also distinguish the “termination notice period” from the “resignation request period”, because each has its own legal basis and context.

Fifth: Resignation is now governed by detailed procedures

Article 79 bis was introduced to regulate resignation. Among its provisions, a resignation request is deemed accepted if the employer does not respond within 30 days of its submission. Acceptance may be deferred for up to 60 days in the interest of work, subject to a timely, reasoned written explanation. Employees may also withdraw their request within seven days of submission unless it has already been accepted.

Stopping work immediately after submitting a resignation request, on the assumption that the contract has ended, is a serious mistake. The provision maintains the contract and both parties' obligations during the request period and regulates when termination occurs and how resignation is accepted. Its effect on end-of-service benefits and other entitlements must be assessed under the relevant provisions, taking account of the reason for termination and length of service, rather than relying only on the word “resignation” in a human-resources form.

Sixth: Maternity leave shows why workplace policies must be updated

Article 151 entitles a female employee to 12 weeks of fully paid maternity leave, including six compulsory weeks immediately following childbirth. The remaining leave may be distributed, and an extension may be available, subject to the statutory conditions. Some establishments may not promptly update leave forms or internal rules, leaving older durations or procedures in their systems and causing errors when a new request is processed.

The required review extends beyond the article itself: it should address the request procedure, evidence of the expected delivery date, work arrangements during leave and any additional contractual entitlements that exceed, without contravening, statutory minimums.

Seventh: A practical checklist for employees and employers

For employers: Update standard contract templates, annexes and work regulations, notice and resignation procedures, probation clauses, employee leave policies and authorization to issue termination decisions.
For HR departments: Keep documentation records, decisions and notices consistent, and ensure that contract templates on electronic platforms match what is signed and implemented.
For employees: Review the registered contract, do not rely on verbal promises or outdated policies, and retain notices of resignation, acceptance, termination and leave.
For legal advisers: Determine the date of the relevant facts and the applicable version of the law; examine exceptions, regulations and the legal basis of each entitlement before giving an opinion or bringing a claim.

Frequently asked questions

Did the amendments remove an employee's rights if no contract was signed?

No. Article 51 recognizes an employment contract even if it is unwritten, subject to specific rules on evidence and documentation.

Does resignation terminate the contract on the date the request is submitted?

Not necessarily. Article 79 bis governs acceptance, the passage of time, deferral, withdrawal and the parties' continuing obligations during the request period.

Is updating the contract template enough?

No. Changes must also be reflected in work regulations, policies, forms, electronic systems and management practices, with due regard to the relevant laws and decisions.

Conclusion

The impact of Labor Law amendments appears in everyday details: a properly documented contract, a valid probation period, clear notice, resignation handled within the applicable time limits and updated leave policies. A sound legal review starts with the law in force, its regulations and the date of the relevant facts, then considers how to translate legal obligations into workable documents and processes.

Official legal sources and references

Related service: Fuaad Punjabi Law Firm for Legal, Labor and Administrative Consultations provides legal advisory and research services, as well as representation, depending on the nature of the matter and the scope of engagement. Official firm website.

Author: Lawyer Fuaad Punjabi | Sources reviewed: 14 November 2026 | This material is intended for general legal awareness and does not replace an assessment of the facts, documents and laws applicable to each case. Procedures may vary depending on jurisdiction, the date of the relevant events and the relief sought.

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