| Key highlights with respect to employment
|
New terms of employment contracts
- The employment contract must be in Arabic and 4 copies shall be issued for employer, employee, labor office, and social insurance.
- Contracts are assumed to be indefinite unless otherwise justified.
- Recognized type of work are remote, part-time, gig/platform work.
- 3 months' notice for indefinite term contracts where there is no misconduct.
- 3% yearly wage increase on insurable wage.
Update in severance pay calculation
- For terminated workers, the severance pay will now be paid as 2 months wages per year of service.
Update in calculation of end of service compensation
- Workers on certain fixed term contracts will receive end of service compensation as 1 month's wage for each year of service.
Reduction in working hours and overtime exemption for women
- Women may reduce their working hours by 1 hour daily from 6th month of pregnancy
- Women will be exempted from overtime for up to 6 months after childbirth
Training fund contribution
- Employers with 30+ employees shall contribute maximum 0.25% of the minimum social insurance wage to the training fund
- Employers with internal training programs will be exempted.
Leaves
- The changes announced for various categories of leaves are employee friendly and provides more flexibility to the employees to work.
| Type of leave |
New law |
| Annual leave |
- Leave can be taken up to:
-
15 working days in the first year of employment
-
21 calendar days from 2nd year onwards
-
30 calendar days after 10 years of service with 1 or more employers
-
45 calendar days for employees with dwarfism
- Leaves exclude public holidays, official occasions, and weekly rest days
- Leave accrual of 15 calendar days will start from 1st year of employment
|
| Paid leave |
- Employee will be entitled for paid leave on all public holidays, festivals, and official occasions
- Relevant cabinet decisions regarding religious holidays applies for non-Muslim workers
- Employee working on holidays will get double pay or alternative paid day off
|
| Casual leave |
- Leave can be taken up to 7 calendar days and are to be deducted from annual leave
- Employee can take leave up to 2 days maximum per instance
|
| Study and exam leave |
- Employee can set annual leave timing for exam preparation with at least 15 days of prior notice
- Employee is entitled of paid study leave for actual exam days with 10 days prior notice before start of the leave
- Employee must present proof of actual attendance at the exam
- Leave will not be deducted from annual leave balance
|
| Maternity leave |
- Women employees will be entitled to maternity leave from 1st day of employment
- Leave can be taken up to 120 days
- Leave can be availed maximum up to 3 times per employment
|
| Paternity leave |
- Male employee will be entitled to 1 paid day leave within 7 days of child's birth
- Leave can be availed maximum up to 3 times per employment
|
| Childcare leave |
- Women employee will be entitled up to 2 years unpaid leave in large companies
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