Sabq, 25 September 2026: Saudi Arabia’s Cabinet has approved Saudi Arabia Decision No. 318/2026 (04/04/1448H) amending the rules governing how employees and workers are treated in sectors undergoing transformation and privatisation.
The amendment follows a review of submissions from the Royal Court, the Ministry of Finance, the Council of Economic and Development Affairs, and recommendations from the Cabinet’s General Committee.
The decision introduces two key changes:
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Deletion of references to Article 18 of Saudi Arabia Royal Decree No. M51/1426 Approving the Labour Law in several provisions of the original rules.
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Revision of Article 18(3) to clarify that an employee’s service is considered continuous for the purposes of end‑of‑service benefits and leave entitlements. The supervising entity (“predecessor”) is responsible for benefits accrued before transfer, calculated on the basis of the last wage, while the receiving entity (“successor”) assumes responsibility for subsequent entitlements, also based on the last wage.
Implementation mechanisms will be issued by the Board of Directors of the National Centre for Privatisation, in coordination with the Ministries of Finance and Human Resources and Social Development.
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