MEA Employment Predictions 2024: KSA Labour Law Amendments

Anticipate amendments to the KSA Labour Law, as the country is poised to introduce changes aimed at enhancing its labour market dynamics and addressing evolving employment challenges.

In a move aimed at adapting to evolving employment challenges, the Kingdom of Saudi Arabia (KSA) is considering potential amendments to its Labour Law. Towards the close of 2020, the Ministry of Human Resources and Social Development in KSA introduced a draft proposal, outlining significant changes that encompass various aspects, such as probation periods, weekly working hours, maternity leave duration, statutory termination provisions, and compensation for unlawful termination.

While these proposed amendments addressed crucial areas, there has been a lack of updates since their initial proposal. The current status of these changes remains uncertain, leaving businesses in KSA in a state of anticipation regarding their potential implementation and the consequential impact on employment contract requirements.

One change that will be introduced in 2024 are the specific employment regulations for the four recently established free zones which we anticipate will be a radical departure from the current Labour Law in areas such as Saudisation and termination of employment.

We also anticipate legislative changes regarding equal opportunities and occupational health and safety in the coming year.

As the business community navigates this period of potential change, the fate of these proposed amendments hangs in the balance. We will closely monitor any updates regarding these potential revisions and their implications for the KSA labour market.

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