Labour Law amendments: what employers need to update

Amendments to the Saudi Labour Law took effect in February 2025. Employers should review their contracts and policies against them.

Probation

The maximum probation period rises from 90 to 180 days, and it must be stated in the contract.

Notice periods (indefinite contracts)

• When the employee resigns: 30 days' notice (was 60).
• When the employer ends the contract: 60 days' notice remains.

Resignation

An employee can resign with written notice. The employer has 30 days to respond and may postpone acceptance by up to 60 days for a business reason stated in writing.

Leave

• Maternity leave rises to 12 weeks, six of them mandatory after birth.
• 3 days of paternity leave within seven days of the child's birth.
• 3 days of leave on the death of a brother or sister.
• Overtime can be compensated with paid leave instead of money, by agreement.

Non-Saudi employees

A contract with no stated term is treated as one year from its start date, and renews for the same period if work continues.

What to do

1. 1Update your contract templates and HR policy.
2. 2Review probation clauses in contracts signed since February 2025.
3. 3Reflect the new leave entitlements in your payroll and leave system.