The Modifications of the Saudi Labor Law in 2026
On the 18th of February, 2026, the Ministry of Human Resources and Social Development of the Kingdom of Saudi Arabia agreed to pass several modifications regarding the labor law. The objectives of these amendments include enabling economic development, provide more working opportunities, and enhance efficiency of the labor market.
The new changes included amending 38 already existing articles, eliminating 7 articles, and adding 2 new articles of labor law rules. These amendments aim to empower employees’ rights, enhance the work ecosystem, increase the competitiveness of the Saudi labor market, and provide more support to women in various industries and disciplines.
The Major Changes of the Saudi Labor Law in 2026
The Rights of Employees and the Definition of Resignation
For the first time, the Saudi labor now has a clear definition of resignation that calls for offering the employees their full rights and guaranteeing equivalence and fairness in every single aspect regarding the employees in their workplace.
Leaves and days off
A new type of paid leave has been added to the law. This offers the employees three days of paid leave in case of the death of a sibling. Moreover, leave for maternity, after the new amendments, consists of six mandatory weeks, after childbirth, in addition to another six weeks that can divided in separate time periods according to the need of the employee. Furthermore, the ladies, according to the new modifications, can start their maternity leave 4 weeks before the actual date of the childbirth.
Compensation for Overtime
According to the new amendments, employees now have the right to compensate the hours they have worked overtime with days off. However, the employer has to provide his approval to this matter.
Termination of Contract Notice Period
The new amendments included modifications to the notice period before the termination of the working contract. Companies, or employers generally speaking, have to inform employes 60 days prior to the termination of the contract. On the other hand, employees have to notify employers 30 days before the termination of their contract.
Equality and Non-Discrimination
The new modifications to the labor law of the Kingdom of Saudi Arabia calls affirms the cruciality of equality in all aspects of the working environment including those who are applying for job, or the current employees. Moreover, the new amendments forbid any sort of discrimination in any working place.
More Benefits for Employees
The new amendments of the labor law of KSA calls for more benefits for the employees in terms of the provision of housing and transportation, or allowances for both of them.
An Extension to the Probation Period
The recently launched modifications of the Saudi labor law call for an extension to the probation period to 180 days. This allows the two sides, the employer and the employee to end the contract, within this period, with no limitations at all.
Importance of Documentation
Recognizing the importance of the documentation, the new modifications of the Saudi labor law underscored the importance of the proper documentation of the working contracts and highlighted the necessity of such a procedure.
Updates to the Nitaqat system or Saudization
The main system for the Saudization procedures, the Nitaqat, has been updated to grant businesses that adopt inclusion and employes Saudis would receive large recognition for the efforts in this regard.
Key Updates in the Nitaqat system
- Saudis who were punished by being imprisoned, after they finish their period, when they work in any company, can be counted as two employees.
- Locals with any sort of disability can be counted as four employees when the number of Saudi employees in a certain company is calculated.
- Saudi employees who are still studying or work as part time is counted as a half employee.
- The nationals of the Gulf Corporation Council, GCC, are to be treated as Saudis.
Final thoughts
The amendments to the Saudi Labor Law represent a significant step toward improving the labor environment in the Kingdom since they align with the goals of Saudi Vision 2030 by creating a more flexible and competitive workforce, supporting economic growth, and providing better job opportunities for Saudi citizens.
The recent modifications of the labor law of the Kingdom of Saudi Arabia represent an important step in the quest of the Saudi government to enhance the working environment, as part of the of Saudi Vision 2030. The objectives include providing more flexibility, support economic progress, and present Saudi nationals with better working opportunities and compensations.
