Proposed Amendments in Saudi Labor Law 2021

After it is announced that the Kafala system is canceled from March 2021, it was expected from the HR ministry to propose changes in the Saudi Labor Law. The proposed amendments in the Labor Law include the following.

1- The employer no longer needs to pay the exit and re-entry visa fee and it shall be paid by the expat employees.

2- The ministry will develop a unified form for each type of labor contract.

3- It is also forbidden to withhold the worker’s wages or part of it without a judicial verdict.

4- The employer can terminate an indefinite contract without any notice period of 60 days. Recommended: Notice period under Saudi Labor Law

5- The employer is required to pay one month’s salary for each year of service for an indefinite contract in case of termination under Article 77.

6- Maternity leave of 14-weeks with full pay for working women instead of the existing 10-week leave. Recommended: Rules related to Maternity Leave in KSA

The following rules would remain the same in which the employer shall pay the;

1. Fees for the recruitment of a non-Saudi worker.
2. The fee for his residency permit (iqama).
3. The fee for the work permit and any other fees approved by the state in order to renew the work permit.
4. Fee for changing the Iqama profession.
5. The ticket for the worker’s return to his home country after the end of the contractual relationship between the two parties.
6. The rules related to Article 77 in case of a fixed-term contract.

Source: Saudi Gazette