KSA Labour Law amendments series: Part 3 - training of Saudi nationals

In this third instalment of our series on the 2025 Kingdom of Saudi Arabia (KSA) Labour Law amendments, we delve into the significant changes affecting employer obligations in the training and development of Saudi nationals. As part of Saudi Vision 2030, these amendments aim to promote a skilled and competitive Saudi workforce.

Key developments regarding traineeships

In line with the goals of Saudi Vision 2030 to cultivate and grow local talent, the 2025 Amendments* have refined employer requirements for training Saudi employees. The direction of traineeships has now shifted from merely replacing expatriate workers with Saudi nationals to developing a more capable and competitive Saudi workforce. This shift is reflected in the removal of the requirement for employers to maintain records of Saudi employees, replacing foreign nationals.

Training requirements of Saudi employees

Before the 2025 Amendments, only employers with a minimum of 50 employees were required to provide training to their Saudi employees, at a rate of 12% of the total workforce. However, under the 2025 Amendments, this obligation now applies to all employers in KSA, irrespective of their employee headcount. A Ministerial Decree will be issued to determine the new minimum quota of Saudi employees to be trained, replacing the previous 12% threshold.

Additionally, all employers must now establish a formal training and development policy aimed at enhancing the technical, administrative and professional skills of Saudi employees.

Skills development 

The 2025 Amendments have emphasised skill-based training, requiring employers to clearly define the specific skills being developed in their training programs. These skills must be explicitly outlined in training contracts, which should also outline the rights and obligations of both the trainee and the employer.

New employer obligations

Employers in KSA are now required to report training data annually through an online platform designated by the Ministry of Human Resources and Social Development (MHRSD).

Training of students and graduates

The MHRSD may introduce a mandatory requirement for employers to provide practical training for students and graduates. Unlike the current system, where training agreements are made between the employer and MHRSD, the new rules would require a direct contract between the employer and the trainee to govern the training arrangement.

Employer’s obligations towards trainees

The 2025 Amendments outline specific obligations that an employer must comply with when engaging trainees:

• Employers must prepare and maintain a list of various training programs for different professions, including both theoretical and practical training.
• Employers must evaluate trainees at the end of the training program or at designated intervals and keep written performance records in the trainee’s file at the company.
• If an employer requires a trainee to continue working after the end of the training period, this requirement must not exceed the duration of the training program or the remaining period of the fixed-term contract.
• Employers must not charge trainees any expenses related to the training.

Termination of training contracts

Employers must ensure that the termination of a training contract due to a trainee’s inability to fulfil or complete their training is supported by periodic performance reports. These reports should be provided by the training entity and serve as justification for the termination by the employer.

Further, neither party is entitled to compensation upon termination of the training contract, unless the contract expressly provides otherwise.

Conclusion

These changes require all employers to assess their current training programs and training contracts, in addition to developing comprehensive training policies in line with the 2025 Amendments. If you need assistance in adapting to these new requirements, please get in touch with Sara Khoja, Elodie Chalhoub or Susan Romana.

This is the third article in our series on the key amendments shaping employment in Saudi Arabia. If you missed our previous articles, you can access them here: Part 1 - Resignations and Part 2 - Leave entitlements.

^{* Royal Decree M/44 amending the KSA Labour Law and Ministerial Decision No. 115921/1446 issuing the new Implementing Regulations to the KSA Labour Law.}

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