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MOL Announces Proposed Amendments to the Saudi Labor Law for Private Companies

Some amendments were proposed to be made in the Saudi labor law for private companies which was to be handled by the Minister. Saudi Minister of Labor and Social Development Ahmed Al-Rajhi has sought the views of the parties concerned on the proposed amendments to the Labor Law.

What is the Main Aim of the Amendments?

According to sources, Ahmad Al-Rajhi has said that the proposed amendments to the Saudi labor law are aimed at promoting private companies and improving the market for private companies. However, if the employee’s service is terminating, in case of non-use of such leave, overtime cash will have to be paid.

An Amendment is made Following Termination Salary

An amendment is also proposed that if the employment contract does not include a clause of compensation for termination of the contract by the employer in an unlawful manner, then the citizens and Saudi expat employee affected by the termination of the employment contract shall be entitled to have to pay a month’s salary.



Overtime Cash is also Amended in the Existing System

In the present system, fifteen (15) days of hard work is prescribed. Instead of the proposal, it will be one month instead of fifteen (15) days a year. However, if the employee’s service is terminating, in case of non-use of such leave, overtime cash will have to be paid.

The ministry is hopeful that these amendments will help the government to regain public interest as it will solve many existing problems. We are also positive about the new amendments and these making the employment process easier and helpful to the employees. For more information regarding this topic stay connected.



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