Saudi Labour Law Reforms Mark Labour Day 2025

زينب سعيد
May 1, 2025
0 min read time

Saudi Arabia’s official holiday calendar for 2025 lists Founding Day, Flag Day, Eid al-Fitr, Arafah Day, Eid al-Adha, and National Day​, but does not include May 1. In effect, International Labour Day is not observed as a public holiday in Saudi Arabia​.

Labour Law Reforms (Feb 2025)

Nevertheless, in recent months, the government has rolled out major labour reforms. In August 2024, the Cabinet approved amendments to the 2005 Labour Law, which came into force in mid-February 2025​. These changes, aimed at modernizing employment practices, introduce clearer contract rules, extended probation terms, and stronger worker protections. Officials say the updates will make the Kingdom’s labour market more attractive and equitable, aligning with Vision 2030’s human-capital development goals​.

The amendments require precise contract terms and definitions. For example, indefinite-term contracts for non-Saudi nationals are now treated as one-year renewable agreements​, and the law formally defines “resignation” as a worker’s written notice to end a fixed-term contract​. 

Probationary periods have been overhauled. Employers and employees can agree to up to 180 days of probation at the outset, replacing the former 90-day limit, and either party may terminate during this period​. 

The law also imposes a firm anti-discrimination duty on employers, forbidding unequal treatment by race, gender, age, disability, marital status or other factors​. Worker leave benefits have likewise been expanded: paid maternity leave rises from 10 to 12 weeks (with six weeks required after childbirth)​, while fathers now get three days of paid paternity leave and all employees have three days of bereavement leave for the death of a sibling​. 

The amended law further mandates housing and transportation support: employers must provide accommodation and transport or pay allowances if those are not supplied​. Enforcement has been tightened as well, with fines of SAR 200,000 to 500,000 for companies hiring workers without proper licenses or work permits​.

Digital Platforms for Hajj Season

For Hajj 2025, new digital labour platforms were introduced. The “Ajeer Al-Hajj” portal links jobseekers with seasonal Hajj work, enabling establishments to post vacancies and obtain temporary permits for Saudi and expatriate workers​. A unified electronic permit system (via Absher/Muqeem/Tasreeh) lets residents apply online for Mecca-entry permits​. These steps support Saudi Vision 2030’s modernization goals​.