The modern saudi state was founded in 1932 by abd alaziz bin abd alrahman al saud ibn saud after a 30year campaign to unify most of the arabian peninsula. The civil and commercial procedure law promulgated by virtue of law no. There are roughly as many foreigners as natives working in saudi arabia. The law includes 24 articles and takes into consideration the labour law issued by law no 14 of 2004 and its amendments, and law no 21 of 2015 regulating the entry and exit of expatriates and. Collective bargaining is recognised by the bahraini labour law under article 7. The personal and workplace characteristics of uninsured expatriate. The issue of foreign labor in saudi arabia is now one that touches all corners of the globe. Termination of contract as per saudi labor law ksaexpats.
Saudi labor law updated 2017 overview of ksa labor. Saudi arabia is the birthplace of islam and home to islams two holiest shrines in mecca and medina. This new version contains a translation of the new domestic servants law. Middle east saudi arabia the world factbook central. In the case of an indefinite contract, the termination of contract can be done by either employer or employee subject to the provisions of article 75 of saudi labor law. Recruitment expenditure the employer is not permitted to demand from the workers to bear the expenditure that is relevant to his recruitment, and fees related to other issues such as renewal of iqama residence permit, work licence, the fees due to delay in renewal. Qatar labour law changes a sham, says trade union ituc.
The kingdoms employment legislative framework is based on the twin pillars of the labour law approved by royal decree m51 in 2005, as amended and the implementing regulations of the labour law. The labour law contains detailed provisions that address matters such as recruitment, employment of saudi and nonsaudi. If the employee is in the probation period, the employer can terminate him without notice under article 80 6 of saudi labor law. Amendmenst to the labour law introduced in 2017 deloitte. Termination of employment in saudi arabia by admin march 9, 2012 146 comments this article will discuss what could happen to you if you find yourself victim of termination of employment in saudi arabia and where you would stand according to saudi labor law and what you can do about it. Employer and employee relations in saudi arabia are regulated by the labor laws which look after the interest of both the parties. Termination without notice article 80 of saudi labor law. Bahrain labour law bahrain labour law disclaimer this english language text is not an official translation and is provided for information purposes only. Right to have iqama residence permit as per article 40. Since july 2017, saudi arabia has been imposing fees for expats. Any contract under which any person undertakes to work for the account of an employer under the latters direction or control in consideration of a wage.
The new changes in regulation are preventing employers from keeping iqama, passports or medical insurance cards for their workers. Labor law by employing saudis in order to move from the red and yellow ranges if they. Employees may terminate their contract by resigning and an employer may terminate the contract by dismissing an employee. Workers of agricultural firms that process their own products. The employment relationship between employers and employees is governed primarily by the labour law royal decree m51 23 shaban 1426september 27. Based on interviews with 12 large private sector providers inriyadh, jeddah, and khobar, we found that a labor law enacted in 1999 led to rapid expansion ofthe insured population, both expatriates. Below, we present a short description of the key changes and their most important implications for employers. Saudi labor laws and violations of expats in saudi arabia. The most obvious difference between saudi arabias workforce and that of most other countries is the relative size of the expatriate labor force. The time during which the employee would be available for the service of the employer but it does include rest periods. However, only a few of us know the saudi labor law for expatriate s passport. It also stipulates the terms and conditions for entering, ending or terminating the work agreement. And the labour law for the private sector promulgated by legislative decree no. Qatars labour ministry shuts down 15 recruitment agencies.
The top six nationalities of expatriate workers in the study correspond to the top six nationalities of expatriate workers in the private sector of the riyadh region, as per. The awareness of these laws for expatriates is really beneficial many cases are registered against companies who brain wash employees and dont gave them the leaves which they have to be given. Additional research and analysis on the middle east employment market and hr. Understanding employment law in the kingdom of saudi arabia.
This category includes manual and automatic laundries. New executive regulations of the ksa labour law al. Workers of agricultural and pastoral firms that employ ten or more workers. The kings official title is the custodian of the two holy mosques. The basis of saudi arabias employment legisla tion framework is. Kuwait mulls more leave for private sector kuwait gulf. Termination of contract under article 74 of saudi labor law. Probation rules under saudi labor law absent from work. It confers no rights and imposes no obligations separate from those conferred or imposed by the original. Employer has to bear the airfare of the workers from home country to saudi arabia. The act of holding passports of employees by kafeel is illegal. Percentage for salary in first 5 years is 50% and for next 5 years is. On 29 january 2017, the saudi minister of labor issued resolution.
This article briefs on the rights of expatriates under the saudi labour law. Workers who operate or repair agricultural machineries on a permanent basis. The personal and workplace characteristics of uninsured expatriate males in saudi arabia. Expats in saudi arabia shall no more be allowed to work in 12 areas of work, the ministry of labour and social development has stated. Kuwait mulls more leave for private sector amendment to labour law calls for granting bonus retroactive to 2010 published. A significant percentage of the nations inhabitants are immigrants seeking economic opportunity, making up 37% of the total saudi population. Fortunately, as part of the general rights of employees prescribed by the saudi labor law, all workers are entitled to official leaves, holidays, and vacations. Fixed term and indefinite contract under saudi labor law. If the worker is absent from work for more than 30 days without any valid reason in one year or for more than 15 consecutive days provided that the employer has sent him written warnings. The most significant of these, the executive regulations promulgated by ministerial resolution no.
Aside from the resolution, saudi labor regulations only. The labour law applies to all employers and employees in saudi arabia, except. The year 2017 brings a number of amendments to the labour law, which pertain to different areas and, to some extent, materially modify solutions that have existed unchanged for years. What are the rights of expatriates under the saudi labor law. It contrasts somewhat with some of the amendments to the ksa labour law introduced in october 2015 which included the removal of the right to reinstatement for ksa national employees and the introduction of a statutory formula for compensation for unjustified termination now contained in the current article 77 of the labour law. An employment contract binding an employer and an employee against of specific wagesalary. Labour laws and violations of expatriates in saudi arabia. M46 of 05051436h came into force on 18 october 2015. In this article, we have put together a list of the official leaves that apply to most workers in the kingdom. Expats in saudi arabia banned from working in 12 jobs. The insurance market in saudi arabia was developed. Demography, migration and labour market in saudi arabia. All of us know that employers in saudi arabia hold the passports of their employees who are under his sponsorship. The labor law applies to both saudinational workers.
In saudi arabia, the labor force has a number of unique aspects. A major concern by the health decision makers in gulf cooperative council gcc countries is the burden of financing healthcare. As per the new changes in saudi labor law 2019 an employee can be fired without even receiving his end of service benefits esb in the following conditions. A worker will lose his afterservice benefits if he physically. Pdf backgrounda major concern by the health decision makers in gulf.
The new amendments to the saudi arabian labor laws initially announced in a royal decree no. Saudi arabia labour law login register for jobs jobs by country. Needless to say that expatriate employees recruitment may be necessary in. Saudi warns of fines, suspension for firms that fail to provide health insurance all private sector companies are required to provide health insurance to their saudi and expat employees as well as. A matter of vital importance to the foreign workers is that, before they can participate in any work, they need to obtain from the ministry of labor a work permit, according to article 33 of the labor law. The kingdom of saudi arabia is the second largest state in the arab world, with a reported population of 33,4,660 as of 2018. Amid our hectic, daytoday lives, we all deserve some rest and relaxation every now and then. Some governments have acted firmly and spared no efforts in forcing private. Saudi labor laws of leaves or vacations in 2020 arabian.
Federal public authority advised on labour regulations governing its employees and drafted various types of employment agreements expatriates and nationals, large multinational company advised in connection with a large scale ministry of labour investigation into visa sponsorship. In addition to the above, in july 2017 the ministry of finance increased the fees that expatriates must pay for. New changes in saudi labor laws in 2019 saudi expatriate. Saudi arabia has experienced a population explosion in the last 40 years, and continues to grow at a rate of 1. Rights of expatriate employees under saudi labor law. The labour law in the kingdom of saudi arabia has always been supplemented by secondary legislation. Uae labour law uae labour law disclaimer this english language text is not an official translation and is provided for information purposes only pdf download as pdf file. The labor law applies to both saudinational workers as well as foreign workers. Those employees working in saudi arabia resign from their job completed 10 years or more will be awarded with full percentage of his last drawn salary in this case esb is half of his first 5 years and full esb for his continuing years. Definitions article 1 this law shall be called the labor law. Article 2 the following terms and phrases, whenever mentioned in this law, shall have the meanings expressed next to them, unless the context requires otherwise. Governmental and public organization employees including those workers in pastures.
End of service benefits gratuity calculation in saudi. The percentage of expatriates under 30 years old in the study sample was 22. This maintains a healthy and sustainable work system. Newly updated november 20, this bestselling handbook on saudi labor law is full of critical information for the new saudi employee or the employer who seeks to recruit staff for the kingdom. Type of change text the new version impactchange 5 partial deletion this law is applicable on the following. The government of saudi arabia provides equal opportunities to its citizen as well expats to develop the country. This english translation of the regulations is for general information only. Employer must bear all the iqama expenses and also if you dont get iqama within 3 months you can transfer your sponsorship or search for another job.
Saudi warns of fines, suspension for firms that fail to. Basic information about the work contract based on the saudi labor law, here are the basics of an employment contract. The arabic text is the official text that has legal force. Ministry of labor and social development seeks to achieve the objectives of the national transformation program 2020 based on saudi vision 2030. Rights for expatriates under saudi labor law life in. Article pdf available in bmc health services research 171 december 2017 with 247 reads. The english version of this document is for guidance only. The reforms follow the saudi ministry of labor s ongoing efforts to strike a balance between the creation of a dynamic marketplace for foreign businesses and protection and development of the local workforce.
The personal and workplace characteristics of uninsured. Abdullah alanezi is at the institute of public administration, saudi arabia. Qatar to enforce ban on labour accommodation in family areas gallery. According to the saudi gazette, the decision will come into. According to the minister for labor and social development, ahmed suleiman alrajhi, the following are the amendments to saudi labor law in 2019. If you are a legitimate employee and employer asks for the abovementioned expenses, you can bring him to the court. Iqama is the permit to live in saudi arabia and you need to keep it with you all the time. Pdf the personal and workplace characteristics of uninsured. Saudi arabian latest labor laws and amendments in case of leave, holidays, vacation of workers and employees. Qatar issued its domestic workers law no 15 of 2017 qatar domestic workers law on 22 august 2017, with a view to introducing a regulatory platform for the protection of some 173,742 domestic workers employed in the country according to the. Any dispute between the employer and the employee if connected with the recruitment of the employee or the terms of his service or conditions of his work. As per the bahraini labour law, bargaining may take place at company, business, industrial, professional or national level.
The reforms follow the saudi ministry of labors ongoing efforts to strike a balance between the creation of a dynamic marketplace for foreign businesses and protection and development of the. Article 40 1 of the saudi labor law the right to iqama. Saudi arabia labor laws and regulations handbook strategic. The personal and workplace characteristics of uninsured expatriate males in saudi arabia abdulwahab alkhamis1, peter cosgrove2, gamal mohamed2 and amir hassan2 abstract background. Saudi arabia employer update 2017 paul hastings llp.
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