Saudi Arabia Implements Major Labor Law Reforms – How Will It Impact Indian Workers?
Saudi Arabia has introduced significant changes to its labor laws, which are expected to benefit millions of Indian workers employed in the country. These reforms focus on improving overtime compensation, leave policies, and workplace rights to create a more favorable environment for employees.
Key Changes in Saudi Arabia’s Labor Laws
The Ministry of Human Resources in Saudi Arabia has stated that the primary objective of these reforms is to safeguard workers' rights and ensure fair treatment across industries. Some of the major updates include:
1. Increased Maternity Leave
- Previously, women were entitled to 10 weeks of maternity leave.
- Under the new law, this has been extended to 12 weeks to better support working mothers.
2. Paid Leave for Personal Events
- Workers will now receive 5 days of paid leave in case of the death of a spouse.
- Employees getting married will also be granted 5 days of leave.
3. Enhanced Overtime Pay
- If an employee is required to work on Muslim festivals such as Eid, it will be counted as overtime.
- Workers will receive full overtime compensation in addition to their regular salary.
4. Extended Probation Period
- Employers can now place workers on a trial period for up to 180 days (previously, the duration was shorter).
5. Anti-Discrimination Measures
- No employer can discriminate based on race, gender, disability, or social status when hiring or providing employment opportunities.
6. Stricter Regulations on Unlicensed Employment
- Businesses employing workers without proper licenses will face heavy fines as part of efforts to regulate the labor market.
How These Reforms Affect Indian Workers?
1. Positive Impact on Indian Migrant Workers
Saudi Arabia is home to one of the largest Indian expatriate communities, with over 2.65 million Indians working in the country. The number of Indian migrants increased by 200,000 in the financial year 2023-24, marking a 10% rise in the workforce.
Workers from India are employed in various sectors, including construction, plumbing, electrical work, domestic services, and skilled professions. The new labor laws will ensure that Indian workers receive fair treatment, better benefits, and stronger workplace protections.
2. Stricter Entry Requirements for Unskilled Workers
Saudi Arabia has taken steps to restrict unskilled labor entry into the country.
- In December 2023, Saudi Arabia introduced a vocational verification program, requiring all foreign workers to pass a skill-based test before securing employment.
- This program is now being implemented across 160 countries, including India.
- Indian workers looking to migrate to Saudi Arabia will need to clear the verification test to qualify for work opportunities.
Final Thoughts
Saudi Arabia's labor law amendments will have a significant impact on Indian workers,
