In order to obtain a work visa for an expatriate employee, the employer must first show that it has advertised locally to Saudi nationals through the Human Resources Development Fund for a minimum of two weeks. Arabic is the official language of contracts, employment data and records, and therefore the Arabic contract text will apply in the event of any conflict between contractual provisions and any English documents. Key considerations Who do these cover, including categories of worker? For termination of an employee in Saudi Arabia, 60 days notice is required on open ended contracts (with an indefinite term and paid monthly). The wage paid during maternity leave varies depending on length of service. However, although the law is broadly worded, it is unlikely to prohibit employers from viewing publicly available information on potential employees. Read here for further details “Working Hours and Overtime Calculation” Annual Leave and Vacations However, any commercial activity in Saudi Arabia must be licensed, and thus to have true self-employed status an individual should hold a trade licence. The Labour Law applies to all employers and employees in Saudi Arabia, except: Several Ministry of Labour resolutions regulate the employment of women in certain sectors, while others regulate the employment of minors. Are there any noteworthy proposals for reform in your jurisdiction? expatriates who enter Saudi Arabia to perform specific tasks limited to a duration of two months (ie, those on business visas); and. (a) Age? Emerging issues/hot topics/proposals for reform Quite opposite to the kind mentioned at the opening, herein both parties have the right to terminate the contract with one month’s notice. (1) (2) If the fixed-term contract incorporates a … It also stressed that the employer shall provide suitable housing for his workers and appropriate means of transportation from their place of residence to the place of work. Saudi Labor Law on Employment Contracts By Pinoy OFW on January 21, 2016 ENTERING INTO A WORKING CONTRACT. The concept of self-employment or contracting is extremely limited. The article does not allow any person to practise the activity of employing Saudis or the activity of recruiting foreign workers unless it is licensed. All new KT app is available for download: Get the latest news around the world in your inbox, so you dont miss out on the action. What is the procedure and typical timescale? The concept of self-employment or contracting is extremely limited. All foreign workers must be sponsored in order to reside and work in Saudi Arabia. Certain types of decision issued by the initial committee may not be appealed. Click/tap here to subscribe to Khaleej Times news alerts on Telegram. Arabic is the official language of contracts, employment data and records, and therefore the Arabic contract text will apply in the event of any conflict between contractual provisions and any English documents. READ MORE, Overcast conditions persist across the UAE. Saudi Law expanded the termination notice period for unlimited contracts employee from 30 to 60 days’ for employees who are monthly paid. Unless the parties agree in advance and in writing on the amount of compensation payable upon termination without “valid reason”, the party terminating the contract will have to compensate the other with either: n A wage equivalent to 15 days for each completed year … Appeals Every employer must have at least one Saudi national employee, regardless of size. Termination of an Employment Contract in KSA. If your employer is asking you to work more than that, you are actually entitled to overtime of 1.5 times of normal time wages. Background checks If the decision is not appealed within the specified period, it shall be deemed final and enforceable. Procedures Training – employers are required to train their Saudi national employees with a view to enhancing their technical, administrative, vocational and other skills for the purpose of gradually replacing non-Saudi employees. Ideally, this should be a reason based on the employee's work following the conduct of a proper and documented termination procedure by the employer. Although I do not know all of the authors/firms, by reading their articles I do gain an understanding of their appreciation of a topic, and should the need arise I would not hesitate to contact them on those topics.”, © Copyright 2006 - 2021 Law Business Research. In order to be recognised as disabled, the individual must hold a certificate recognising him or her as officially disabled issued by the General Organisation for Social Insurance. However, it does distinguish between Saudi and non-Saudi employees. 1. Further, the wage payable during annual leave may be affected where a female employee has taken maternity leave in the same year. ”Lexology is a useful and informative tool. M/46 of 05/05/1436H) came into force on 18 October 2015. Are mandatory arbitration/dispute resolution agreements enforceable? Where a settlement cannot be achieved, the claim will be heard by one of the labour dispute settlement committees. The Nitaqat programme and the immigration rules mean that there are major differences in how these two categories of employee are dealt with. All rights reserved. (e) Immigration status? Women are permitted to work but are restricted from working in certain fields and are prohibited from working in hazardous jobs or industries, as set out in a list issued by the Ministry of Labour. (d) Credit checks? In order to obtain a work visa for an expatriate employee, the employer must first show that it has advertised locally to Saudi nationals through the Human Resources Development Fund for a minimum of two weeks. Several long-awaited employment law reforms have recently been implemented. Recent amendments to the Labour Law a encourage employers to form worker committees to oversee staff welfare and to handle the funds collected through fines imposed on workers. However, in some circumstances certain payments may be excluded from the calculation. Various subsidies and incentives are offered to encourage employers to meet and exceed quotas. Are there restrictions on working hours? The Nitaqat programme and the immigration policy pose various considerations for an enterprises looking to conduct business in Saudi Arabia and employ non-Saudi nationals: In addition, Saudi nationals are entitled to additional or varying benefits (eg, retirement benefits in the form of employer contributions to the state pension scheme). In general, an employer benefits from being in a higher category through greater flexibility in recruiting and managing expatriate employees, and will face increased penalties when placed in a lower category. (b) Medical history? Under Saudi patent law, a patent developed by an employee belongs to the employer where the employer can demonstrate that the patent was created by the employee in the course of the employment (ie, in the course of performing the role) and using facilities or data made available by the employer. Each employer is required to keep a record showing the names of the Saudi workers who have replaced the non-Saudi nationals. Employee complaints or disputes should be brought to one of the 37 labour offices which mediate labour disputes. Termination of Contract as Per Saudi Labor Law. The Saudi Credit Bureau offers consumer credit information services in Saudi Arabia. Further, the wage payable during annual leave may be affected where a female employee has taken maternity leave in the same year.
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