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Saudi Arabia – New Redundancy Rules

Saudi Arabia – New Redundancy Rules

The government of the Kingdom of Saudi Arabia (KSA) announced new redundancy laws on 30 January this year.

The new rules apply to proposed collective redundancies of KSA nationals only (i.e. not expats).

For these purposes, a collective redundancy means a redundancy of more than 1% of the KSA employees or (if greater) a total of ten employees within one year from the date of the last termination of a KSA national.

The new rules prohibit larger businesses from making collective redundancies of KSA nationals for any reason without first notifying the government, and providing certain information and documents. The notification must be made at least 60 days prior to serving written notice of termination. The local labour office will then investigate the proposed dismissals and has a number of rights, including rejecting the proposal.

If you have employees in Saudi Arabia and need to consider a downsizing, you will need to look at these new rules in detail prior to finalising your plans.