Saudi HRSD ministry seeks public feedback on labor rules amendments

The Ministry of Human Resources and Social Development (HRSD) posted the amendments of the draft labor rules for public feedback within a month from Jan. 6.

The move aims to support the development of existing rules and regulations to reform the labor market and create an appropriate legislative environment for developing the private sector and establishing conducive work environment. Accordingly, this will help achieve the ministry’s goals and the labor market’s strategy in light of the Kingdom’s Vision 2030.

The proposed amendment to Article 26 (2) is as follows: “The percentage of Saudi workers hired by the employer must not be less than the percentage determined by the Minister.” This percentage was 75% of the total number of workers previously.

Another clause added, referred to “the employer must not exclude, separate, or discriminate his workers based on race, color, sex, age, disability, marital status, or any other form of discrimination that would impact the application of equal opportunities or fair treatment in employment and occupation”.

According to the proposed amendments, the employer provides the workers with appropriate housing and means of transportation from residence to work, or may be paid appropriate cash allowance with the salary.

As for terminating the contract, the worker should submit a written notification to the employer no less than 30 days from leaving the work, and the employer should give the worker a written notice no less than 60 days before the termination. If the term and salary are not identified in the contract, the notification period should not be less than 30 days for both parties.