Saudi Arabia’s labour laws have undergone significant reforms to support Vision 2030 and enhance the working environment. The 2025 amendments introduce formal classifications for employment contracts and strengthen worker protection, ensuring compliance with international standards.
Key Points
- New formal classifications for fixed-term, part-time, seasonal, and remote work contracts.
- Enhanced protections against arbitrary dismissals, requiring valid justification and procedural compliance.
- Mandatory wage transparency through electronic payslips detailing salary and deductions.
- Streamlined digital dispute resolution mechanisms with a three-month statute of limitations on wage claims.
- Emphasis on Saudization policy compliance, with penalties for misclassification.
- Clearer regulations for freelance and remote work contracts, including safety obligations.
- Foreign employers now face stricter compliance requirements under the updated law.
Why should I read this?
If you have any dealings with employment in Saudi Arabia—whether you’re an employer, legal advisor, or employee—these updates are a must-read. Understanding these changes could save you from legal headaches down the line and ensure you’re on the right side of compliance in this evolving landscape. We’ve done the legwork so you can stay ahead of the game!
