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Saudi Labor Law

Labor Law Reform

Labor Law Reform

The ongoing legislative changes updating Saudi Arabia's labor regulations to align with Vision 2030 economic and workforce objectives.

Saudi Arabia has undertaken significant labor law reforms since 2021 as part of Vision 2030. Key reforms include liberalization of the Kafala (sponsorship) system allowing workers to transfer jobs without employer consent after minimum service periods, introduction of the Labor Reform Initiative (LRI), expansion of female employment rights, new freelance visa categories and enhancements to GOSI benefits for Saudi nationals. Employers must proactively monitor and implement regulatory changes to maintain compliance. Inclusive Solutions provides ongoing labor law advisory and compliance monitoring to keep clients updated on all regulatory developments.