Saudi Arabia: Assessing the Impact of the 2016 Implementing Regulations to the Labour Law

Analysis

Following the issuing of Saudi Arabia Ministerial Decision No. 1982/1437 approving the Implementing Regulation of the Labour Law in the Official Gazette on 22 April 2016, Amgad Husein and Jonathan G Burns of Dentons examine its significance.

What's happened?

The Saudi Arabian Labor Law (enacted by Saudi Arabia Royal Decree No. M51/1426 and contained in Saudi Arabia Cabinet Decision No. 219/1426 comprehensively governs all aspects of employment relationships in the Kingdom. It has been amended a number of times since its introduction, most recently in October 2015 with the passage of Saudi Arabia Royal Decree No. M46/1436.

The country's authorities have now issued the Implementing Regulations to clarify particular provisions as well as clarify aspects of the Implementing Regulations issued under Saudi Arabia Ministerial Decision No. 693/1/1428 and the Implementing Regulations on Recruitment Companies, Labour Recruitment and Provision of Labor Services under Saudi Arabia Ministerial Decision No. 1/1/1998.

What do the 2016 Implementing Regulations cover?