Significant Rise in Labour Dispute Resolutions

The number of labour case rulings in Saudi Arabia has surged by 47% in the first half of 2024 compared to the same period in 2023, according to a report by Saudi newspaper Al Watan. This rise reflects the kingdom’s ongoing efforts to streamline labour dispute resolutions and protect both workers and employers.

Types of Resolved Cases

These cases largely pertain to requests for overdue wages, allowances, compensation, rewards, final exit, and service certificates. The Saudi labour tribunals have taken significant steps to ensure quick and fair resolutions to these disputes.

Quick Handling of Labour Disputes

Labour disputes in Saudi Arabia are typically resolved within an average of 20 days, according to the report. This expedited process has significantly contributed to improving the work environment, making it more stable and attractive for both local and expatriate workers.

Efforts to Reach Amicable Settlements

The kingdom has introduced a mechanism to facilitate friendly settlements between employers and employees, which serves as the first phase in handling labour suits. Mediation efforts are aimed at reaching an acceptable compromise, and if unsuccessful, the case is forwarded to a labour court within 21 days.

Establishment of Labour Courts

In 2018, Saudi Arabia launched new labour courts to expedite litigation and ensure timely justice as part of broader reforms in the country’s legal system. These courts play a pivotal role in resolving disputes swiftly, ensuring a fair and efficient process for all parties involved.

Impact on Saudi Arabia’s Workforce

With a population of 32.2 million, Saudi Arabia is home to a large community of expatriates, many of whom benefit from the kingdom’s proactive approach to labour law enforcement. These reforms have been vital in safeguarding the rights of expatriate workers, ensuring a stable relationship between contractual parties.