Approved Amendments to KSA Labour Law
Type
E-journal
Date
27 Apr 2015
Jurisdiction
Saudi Arabia
Taxonomy
Contract & Conditions of Employment, General Employment & Labour Law, Rights & Duties of Employees & Employers
Copyright
LexisNexis
Relevant company
Clyde & Co
Legal reference
Saudi Arabia Royal Decree No. M51/1426
Analysis
Since its accession to the WTO in 2005, the Kingdom of Saudi Arabia (KSA) has embarked on a dual process of opening its markets to foreign companies (its bourse, the largest in the Middle East will shortly open to foreigners) and regulating its labour market to promote employment for nationals. Approximately three years ago, the Ministry of Labour also published 80 proposed amendments to the KSA Labour Law which have been sharply debated by the business community. The amendments are designed in part to bridge the gap between the private and public sectors thereby encouraging nationals to work in the private sector. Two weeks ago, the Ministry of Labour announced that 38 amendments had been approved by the Council of Ministers.
Given that the current form of the KSA Labour Law was issued in 2005 (which is relatively recent), the fact that the Kingdom has continued to look at amending the law, culminating in the most recent announcement, indicates the importance placed by the Kingdom on access by its nationals to training and jobs, and to ensure that the statutory regime continues to reflect current work practices.