Multinational employers operating in the Middle East and Africa face escalating geopolitical tension, challenging economic conditions and evolving social expectations. Our recent webinar covered how countries across MEA are responding to these pressures—and what employers need to know to stay compliant and competitive.
Click here for a link to the recording, and also a preview of the discussion:
A Bird’s Eye View
- Economically, a mixed bag: while Morocco, the UAE, and Saudi Arabia are experiencing growth and attracting foreign investment, South Africa and Türkiye are grappling with more challenging conditions.
- Escalating conflict: Regional conflict in neighboring jurisdictions in the Middle East have wide ranging implications for global businesses.
- 2025 is a landmark year for labor law reform: Significant reforms in Saudi Arabia and the UAE are already in effect, plus anticipated reforms in Morocco, South Africa, and Türkiye.
Country Highlights
Morocco
- A new labor code is expected by the end of 2025, aiming to simplify hiring and termination procedures and formally regulate remote work.
- Social protection reforms now cover informal and domestic workers, with legal recognition of unpaid domestic labor under consideration.
- A new strike law (effective August 2025) introduces protections against retaliation and bans replacement workers during strikes.
Saudi Arabia
- 2025 labor law amendments include extended maternity leave (12 weeks), clarified paternity leave, and compensatory time off for overtime.
- Employers must now provide housing and transport allowances or cash equivalents.
- Litigation risks are relatively high and mutual terminations are common due to employee-friendly courts and the absence of at-will employment.
South Africa
- Amendments to the Employment Equity Act mean only employers with 50+ employees must comply with transformation plans.
- A new Code of Good Practice on Dismissal is expected to simplify pre-termination processes, moving away from trial-like hearings.
- DEI remains a strategic imperative, with persistent inequalities driving transformation efforts.
Türkiye
- From January 2025, small employers must comply with occupational health and safety requirements or face fines.
- Labor courts are highly employee-friendly; mediation is increasingly used to avoid litigation.
- A new circular on workplace harassment encourages employers to adopt anti-harassment policies and highlights the importance of training.
United Arab Emirates
- Whistleblower protections are now in force per the ADGM Employment Regulations 2024, with penalties including license suspension for noncompliance.
- Litigation risk is low unless retaliation is involved; discrimination claims are rare but emerging.
- Employee wellbeing is gaining importance in the UAE, with many multinational companies implementing wellbeing initiatives, including employee assistance programs.
Tune in to learn more, and as always, reach out to your Baker McKenzie employment lawyer with any questions.