Key Highlights of the Amendments:

• Written Contracts for Non-KSA Nationals: Employment contracts must now be in written form and of a fixed term, providing clear terms and added security for both employers and employees.
• Resignation Rights: The amendments formally introduce the right to resign for employees on fixed-term contracts with a 30-day notice, improving workforce flexibility.
• Notice and Termination Procedures: Structured procedures for notice and termination aim to ensure a fairer process, including extended objection periods for disciplinary actions.
• Enhanced Leave Entitlements: The law now offers increased maternity leave, introduces paternity leave, and includes bereavement leave for the loss of a sibling, supporting employees during significant life events.
• Enforcement and Compliance: Strengthened enforcement of Saudization policies and stricter penalties for non-compliance highlight the commitment to local employment and fair treatment.

Implications and Next Steps:

These amendments promise to foster a more inclusive and competitive workforce in the Kingdom, enhancing the rights and well-being of workers while providing employers with opportunities for growth. Employers are advised to review and update their employment contracts, revise internal policies, and enhance compliance frameworks to adapt to these changes.

Our team is ready to assist you in navigating these changes, ensuring your business remains compliant and poised for innovation in the Kingdom's evolving employment landscape. We encourage you to reach out for personalized support in adapting to these transformative amendments.

This is a time of opportunity for employers and employees alike in the Kingdom, and we are here to support you every step of the way.